Refunds will also be made automatically if the car is taken off the road (as long as you have made a Statutory Off Road Notification) or if it becomes exempt from road tax (for example, vehicles used by organisations providing transport for disabled people).
However, if the vehicle has been stolen, a refund will not be automatic and the driver will need to apply using a V33 form and the crime reference number.
Refunds are usually received within four to six weeks and sent to the person named on the log book (also known as the V5C registration document).
Payments made by direct debit will be automatically cancelled.
If a car is clamped, a valid tax must be paid for within 24 hours or a release fee of £100 will be charged, as well as a "surety deposit" of between £160 and £700 depending on the vehicle.
This deposit is then refunded if the tax is purchased within two weeks.
You can tax the vehicle online, at your local Post Office or over the phone on 03.All you need to do is enter your vehicle’s registration number to see when its tax and MOT expires. You'll make a small saving of a few quid and your road tax will never expire as long as your Mo T remains valid.When you sell your car, you will have to let your bank or the DVLA know, to ensure you don't pay more than you owe.The fees are even higher to release an impounded car and prosecution costs and fines may still apply.Drivers will automatically receive a car tax refund by cheque for any full months remaining when they tell the DVLA that their vehicle has been sold, transferred, exported or scrapped at an authorised facility.AA chief Edmund King criticised the diesel levy and said: “it is ridiculous to further demonise diesel via differential taxes when drivers are already voting with their wheels”, reports the Financial Times .You should be sent a reminder by the DVLA when your vehicle tax is due for renewal, but you can also head to the agency’s official website to see whether your car is taxed and if it has a valid MOT.This can be reduced by half if paid within 28 days, but could increase to a maximum of £1,000 if it goes unpaid and ends up in court.Offenders may also be lumbered with court costs if they are successfully prosecuted.According to DVLA data obtained by Auto Express, 117,490 enforcement cases were created in the six months after the tax disc was scrapped, compared with 82,999 or 86,939 in the previous two six-month periods when the tax disc was still in operation.Out-of-court settlements also doubled from 53,799 to 97,348 in the six-month period, while the number of cars clamped for unpaid road tax has soared from around 5,500 per month to 8,800.