Can A Car Dealer Tax A Car For Me?

This article will help its readers in answering the question of whether or not a car dealer can tax a car for them. To discuss the topic in detail, we will explore different aspects of having to pay a car tax; including how to pay your car, the number of days it takes for it to be updated on an online record as well as the consequences of not paying your car tax.

Can A Car Dealer Tax A Car For Me?

Yes, a car dealer can tax a car for you. It is common practice for car dealers to arrange for the Vehicle Excise Duty applicable to a car to be paid while making a sale to a customer. They add the amount of the registration fee of £55 as well as the annual car tax (depending on your vehicle’s tax class) to the price of the car when doing so. 

However, they will need the following information from you, when they apply for your car tax to be paid:

  • full name of the vehicle owner
  • address of the vehicle owner
  • V5C/2 registration or New Keeper Supplement of the vehicle

Car dealers can arrange to have your car tax paid whether you are buying a brand-new vehicle from them or a used one. 

On account of a recycled (second-hand) vehicle, they will take the details of the previous owner and add your name (and other details) to the “new keeper” section of the V5C or vehicle logbook before sending it to the Drivers And Vehicles Licensing Agency. 

The car dealer will give you a green slip that you really want to be careful about as it will act as the verification of your responsibility for the vehicle until the vehicle log book confirms it through the DVLA. You can utilize the 12-digit number that shows up on your green slip (additionally named as your V5C2 reference number) to pay your car tax while you are waiting for your car logbook to be renewed/transferred to your name.

Once your car tax is paid, the dealer will share your vehicle logbook or V5C registration certificate with you.

On the off chance that the seller doesn’t make reference to this during a vehicle deal, you ought to get some information about it. On the other hand, if the car dealer does not make car tax payment arrangements for you, you must make sure that your car tax is paid before you drive it away from the dealership premises. 

What Can You Do If A Car Dealer Does Not Tax A Car For You?

If a car dealer does not tax your car, you will need to follow the below steps to have your car tax updated before you collect it and drive on public roads:

  • Register your new car (this includes imported and new kit cars as well) with the DVLA using the V55/4 form on their website.
  • If you need guidance on how to fill out the V55/4 form, you can use the V355/4; also available on the DVLA website.
  • If you are registering an imported vehicle, you will need to inform the HMRC about the vehicle and its details (in case the dealer has not done so already).
  • Confirm your name and identity by sharing a copy of your photocard driving license along with the V55/4. Otherwise, you can also send a copy of your birth certificate or passport.
  • In order to confirm your postal address, you will need to add copies of utility bills or council tax bills along with your submission.
  • Once your application is processed (it usually takes 4 to 6 weeks) at the DVLA, they will send you your Vehicle Registration Certificate of V5C which mentions you as the registered keeper of the vehicle. 

You will need to make sure that the vehicle that you are purchasing is registered in your name before you collect it. If you are registering and taxing a vehicle for the first time, you will need to pay a fee of £55. You can pay this amount via cheque or postal order and send it to DVLA, Swansea, SA99 1BE.

How Many Days Does It Take For Car Tax To Show Online?

As indicated by the Driver and Vehicle Permitting Organization (DVLA), it can require up to 5 working days for reestablished vehicle expenses to show on the web. Car tax payments can be made through local post offices registered to handle car tax services. You may use a debit card, credit card or direct debit facility to make your car tax payment(s).

You can check the status of your car tax payment via the DVLA’s Vehicle Enquiry System. At the same time, you will get an update regarding the insurance payments for your vehicle as well.

How Do You Pay Car Tax?

You can pay your car tax in any of the following ways:

  • Debit/credit card
  • Direct Debit
  • Cash
  • Cheque
  • Postal Order

To pay your car tax online from the post office, you will need the following documents;

  • Your V11 letter
  • An MOT test certificate
  • The amount of payment mentioned in the V11 letter

New owners will have to commence with a fresh car tax once they buy a car. They can do this online by using the DVLA’s automated phone service on 0300 123 4321. This service is available 24 hours a day and 7 days a week.

They can also visit the nearest Post Office branch that deals with car tax.

What Happens If Car Tax Is Not Paid?

If your car is not taxed and is found on the road by the authorities, you will be fined £80 for driving an untaxed vehicle. If you pay the fine within 28 days, the amount will be halved and you will only have to pay £40. 

Nonetheless, in the event that you don’t pay the fine within the specified time, the sum can increment to £1,000 and you can be prosecuted or your vehicle can be cinched so it can’t be driven until the fine is paid.

If you do not intend to run your car on public roads, you are not required to pay your car tax. Instead, you should apply for Statutory Off Road Notification (SORN) through your local post office dealing with car tax.


Based on the above discussion we can easily conclude that not only can a car dealer tax a car for you, it is quite common for them to do so while making a sale. However, maintaining an updated record of paid car tax is primarily the responsibility of the registered keeper. Therefore, if a car dealer does not pay your car tax, you will have to take care of the needful on your own before you drive your car from the dealership to a public road.


Car road tax: your guide to Vehicle Excise Duty (VED) | Parkers

Buy a vehicle: step by step – GOV.UK

How do you tax a car you’ve just bought? –