Contact the DVLA.Any change in your vehicle ownership needs to be reported to the DVLA. You can call the DVLA on 0300 790 6802 Monday to Friday between 8am and 7pm, and on Saturday from 8am to 2pm. You can email here, or send a letter to Vehicle Customer Services, DVLA, Swansea, SA99 1AR.
Check that your tax has been cancelled.Your car tax should be automatically cancelled. If you have direct debits with the DVLA, these will be automatically stopped and your car tax will no longer be valid.
Wait for your refund to come through.You shouldn’t need to do anything, and a refund will come by cheque through the post. If your refund hasn’t come within six weeks, there may be a problem and you should contact the DVLA for an update on your refund.
Check that your payment information is correct.If you have received the cheque, but the information on it is incorrect, return the cheque along with a note providing the correct information and post it to: Refund Section, DVLA, Swansea, SA99 1AL.
The whole process can take as little as 10 minutes.
When can I cancel my car tax?
The government website lists these as the only reasons why you might need to cancel your car tax:
If your car is sold or transferred to someone else
If your car is taken off the road – for example, you’re keeping it in a garage. This is called a Statutory Off Road Notification (SORN)
If your car is written off by your insurance company
If your car gets scrapped at a vehicle scrapyard
If your car is stolen – you’ll have to apply for a refund separately
If your car gets exported out of the UK
If your car becomes registered as exempt from vehicle tax
If one of these applies to your car, and it currently has full unused car tax months left on it, you can cancel the tax and get a refund.
How do I cancel my car tax direct debit?
Your direct is automatically cancelled by the DVLA when they receive notification of a change in the vehicle’s registered keeper. You will automatically receive a refund for any full months you have left on your vehicle tax and this refund is calculated from the day that the DVLA receives your information.
Do I need to cancel road tax when I sell my car?
You are no longer able to sell a car with road tax anymore so the existing tax will be cancelled as soon as the DVLA process the change in vehicle ownership. When you sell your car, you need to notify the DVLA immediately (by post or email) when you sell your car or that you’ve transferred it to a new registered keeper.
If you fail to notify the DVLA that you are no longer the owner of the vehicle, you could be in with a hefty fine.
How long does it take to get a car tax refund?
The DVLA will need time to process your application but your car tax refund should take no longer than 6 weeks to come through. You should contact the DVLA if you haven’t received your refund cheque after 6 weeks.
Bottom line
You’ll need to get in touch with the DVLA to cancel your car tax and there are a few options to do this with very little hassle.
And if you have any unused months of car tax remaining, you could be in line for a refund. Winner.
Frequently asked questions
Generally, yes you can cancel your car insurance at any time. Just keep in mind that, if you’ve already made a claim, you’re unlikely to get any refund.
If you’ve not made a claim, then depending on how much unused cover you have left, your insurer may only refund you for any full months remaining. You may also be charged a cancellation fee for ending your insurance policy early.
Your vehicle tax used to be decided by the CO2 emissions it produced. However, now new cars have a fixed rate of tax. Here is the breakdown of the bands for car tax for cars first registered in or after 2017.
Vehicle tax is decided by your car’s tax band, which is based on the CO2 emissions it produces. Here is a breakdown of the costs and emissions for each band:
No, there is no grace period for car tax, so if you are buying a car that has been off the road for a while, you must tax it before you can drive it home.
Finder survey: What proportion of Brits say the option to pay in installments is one of the most important considerations when choosing car insurance?
Response
Female
Male
Ability to pay in instalments
26.66%
21.2%
Source: Finder survey by Censuswide of 1032 Brits, December 2023
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*Based on data provided by Consumer Intelligence Ltd, www.consumerintelligence.com (July ’24). 51% of car insurance customers could save £523.17
Esther Wolffowitz was a publisher at finder.com specialising in insurance. Esther holds an MSc in Media and Communication Governance from the London School of Economics and Political Science (LSE). See full bio
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