Car tax can be paid on a monthly, semi-annual or annual basis. Through this article, we aim to explore how car tax is adjusted when it is paid in the middle of the month. Additionally, we will also learn about the different situations when car tax is paid, how it is calculated as well as the consequences faced by car owners when car tax is not paid.

What Happens If I Tax My Car In The Middle Of The Month?

If you tax your car in the middle of the month, you will be taxed for that month and not the upcoming one. Unless your car tax is due for the month that you are paying it in, you should always pay car tax at the beginning of the month so it covers the current month and not the previous one. This is applied in case of paying your car tax on a monthly basis.

If you pay your car tax on a semi-annual or annual basis, while making a payment before the tax term you will need to indicate the duration that it is supposed to run from. 

If you have purchased or registered a car to your name, you will be required to apply for a Vehicle Excise Duty (VED). Otherwise, the DVLA will send you a V11 reminder to do so. The purpose of this reminder is to set up your vehicle tax. You will receive an annual reminder to renew your car tax.

If you have not been able to tax your car due to a misplaced logbook, you can apply online through the DVLA website or through the post. It usually takes 6 weeks for your new logbook to be delivered. Payments can be made through local post offices registered for car tax. You may use a debit card, credit card or direct debit facility to make your car tax payment(s).

In the meanwhile, you can pay your car tax using your V11 reminder notice which states the vehicle owner’s name and the amount of car tax due for the next tax term and can be used as proof of identification. 

However, if it is a new vehicle you will need a V5C/2 Green slip that is issued to new car owners while the ownership of their vehicle is transferred from the previous owner. If the car is not registered in your name, neither can you pay car tax, nor drive it on public roads.

If I Tax My Car On The Last Day Of The Month Will I Lose A Month?

Yes, if you tax your car on the last day of the month, you will lose an entire month’s payment. The reason for this is that car tax runs on a month to month basis. If you pay your car tax on a monthly basis and make a payment at the end of the month, it will be counted as the payment for the running month that is about to end. If you pay your car tax on a six-monthly basis, making a payment at the end of a month reduces your payment to five months in the future. Similarly, in the case of an annual payment, it will be taken as an 11-month payment for the next car tax term.

How Soon Can I Tax My Car Before The End Of The Month?

You can tax your car 2 months in advance before your current car tax expires; however, if your car tax expires at the end of the month, you can pay the amount by the 5th day of the month. These payments can either be through cheque, postal order, online or through direct debit.

If you are making an advance payment, you will need the following documents:

  • Your vehicle registration certificate or logbook
  • An application for advance payment along with reasons 
  • Complete V10 form for vehicle tax and V85 form in case of a heavy good vehicle
  • An MOT or goods vehicle testing (GVT) certificate (in case you need one) 
  • A cheque, postal order or banker’s draft with the full amount payable to DVLA Swansea

How Long Does It Take For Car Tax To Show Online?

According to the Driver and Vehicle Licensing Agency (DVLA), it can take up to 5 working days for renewed car tax to show online. 

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 of your vehicle as well.

If you have purchased a brand new car and you are the first owner, you may want to check if the car tax has already been paid as dealers usually arrange for its payment while making a sale. Most of the time your car tax is included along with the price of your car and any registration fee that is to be levied. 

Will I Get A Car Tax Reminder?

Car owners receive a reminder from the Driver and Vehicle Licensing Agency around three weeks before their vehicle tax is about to expire. This is called a V11 reminder. This letter can be taken to the nearest local post office which has car tax facilities and used as a reference to pay your car tax. If a vehicle owner loses their V11 letter, they can use their 11 digit reference number from their logbook known as V5C.

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

If you have misplaced your V11 letter or your V5C, your car tax can still be renewed through the local post office. 

At this time, you should also apply for a new Registration Certificate using a V62 application form A for £25.00

However, 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.

How Are Car Tax Rates Calculated?

Rates of vehicle tax in the UK are calculated on the basis of a few factors including the engine size and CO2 emissions of the car.

However, the UK road tax system is divided across two separate rates. The first-rate applies during the first year of a car on the road when its CO2 emissions are also accounted for while calculating the tax rate. It may range from £0 for zero-emission cars to £2,245 for cars that emit 255g/km or more.

From the second year onwards, the CO2 emissions will not account for road tax, rather the original cost of the car will be considered for calculations.

Cars that are valued at or above £40,000 will be taxed a further £335 annual supplement that runs for five years. After this time-lapse, they will be taxed at the current tax rate applicable during the tax term.

The current (2021-22) road tax is set at a flat rate of £155. This is an increase from £150 in the 2020/2021 financial year) to adjust for inflation. There’s a £10 annual discount for alternatively fuelled vehicles such as hybrids, mild hybrids and plug-in hybrids. Therefore, their owners pay £145 annually.

Can You Tax A Car Without V5?

Yes, you may be able to pay your car tax without a V5 (your car logbook) if the vehicle is registered in your name. If you have received a V11 reminder notice which states the vehicle owner’s name and the amount of car tax due for the next tax term, you can use it as proof of identification. If it is a new vehicle you will need a V5C/2 Green slip that is issued to new car owners while the ownership of their vehicle is transferred from the previous owner. However, if the car is not registered in your name, neither can you pay car tax, nor drive it on public roads.

Payments can be made through local post offices registered for car tax. You may use a debit card, credit card or direct debit facility to make your car tax payment(s).

However, in the absence of a V5, your car will be declared as SORN; Statuary Off-Road Notification until the new logbook arrives which can take up to a few weeks’ time. You must apply for a V5 immediately for a fee of £25, in case you have not done so. Not carrying your logbook can lead to a penalty being charged by the Driver and Vehicle Licensing Agency (DVLA).

Will I Get Fined If I Forgot To Tax My Car?

Yes, you will be fined by the Driver and Vehicle Licensing Agency (DVLA) if you forgot to tax your car. 

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. However, if you do not pay the fine within the stipulated time, the amount can increase to £1,000 and you can be taken to court or your vehicle can be clamped so that it cannot be driven until the fine is paid.  

Conclusion:

Car tax is accounted for from the beginning of the month to the end. Therefore paying a car tax during the month will only cover the running month;’s dues (if any) and your payment for the next month will not be taken into account. The same applies to payments made at the end of a month. Therefore, to maintain updated car tax payments, you should make your payments at the beginning of a month. Should you choose to pay on an annual basis, you will also receive a discount on your payments from the DVLA.

FAQs: What Happens If I Tax My Car In The Middle Of The Month?

Can I tax my car halfway through the month?

Yes, you can tax your car halfway through the month. However, it is best to pay car tax at the beginning of a month so that you don’t lose on the number of days that have already passed.

How many days grace do you get to tax your car?

You don’t get grace days to tax your car anymore since tax discs are no longer used. You can pay your car tax up to two months in advance to avoid delayed payments.

Can I tax my car before the due date?

Yes, you can tax your car up to three weeks in advance by making 6monthly or yearly payments from car tax. If you are going to be unavailable, you can also keep your car tax updated by paying it 2 months in advance.

What happens if you get caught without car tax?

You will be fined if you get caught without car tax and in certain cases, your vehicle may be impounded by the authorities as well.

What happens if I pay my car tax late?

If you pay your car tax late, you will have to pay an additional £80 penalty alognwith your car tax dues.

References:

If I Tax My Car On The Last Day Of The Month Will I Lose A Month? | Huuti.

Vehicle tax

Tax your car

DVLA-car tax

Apply for vehicle tax in advance – GOV.UK

Tax your vehicle – GOV.UK

How To Tax A Car: Car Tax Guide (2022 Update) | Motorway

What-happens-if-you-forget-to-tax-your-car

Car tax bands explained | MoneyHelper

Rates of vehicle tax

How to tax a car without V5 | Express.co.uk

What was missing from this post which could have made it better?