Everybody likes getting a refund, especially when it comes to tax refund you may be entitled to claim back tax if you sold your scrap or used car, if there’s still some road tax left on your car, DVLA will refund any complete months that remain.

In 2014, the way car tax or Vehicle Excise Duty, to give it its official name was collected was reformed. Until then, if a car was sold before it ran out of tax, the tax was simply passed on to the new owner.

The DVLA maintains the registration and licensing of drivers in Great Britain and the registration and licensing of vehicles, together with the collection and enforcement of VED in the UK.

This information helps the DVLA get the right drivers and vehicles taxed and on the road, as simply, safely and efficiently as possible.

The DVLA is responsible for:

  • recording driver endorsements, disqualifications and medical conditions
  • issuing photo card driving licences
  • issuing vehicle registration certificates to vehicle keepers
  • taking enforcement action against vehicle tax evaders
  • registering and issuing tachograph cards
  • selling DVLA personalised registrations
  • helping the police and intelligence authorities deal with crime
  • providing anonymised data to those who have the right to use the service

To Cancel your vehicle tax, you have to inform DVLA you no longer have the vehicle or it’s off the road. You get a refund for any full months of remaining tax.

Am I eligible?

You can claim a refund from the DVLA if your vehicle has been:

  • sold or transferred to someone else
  • taken off the road, for example you’re keeping it in a garage – this is called a Statutory Off Road Notification (SORN)
  • written off by your insurance company
  • scrapped at a vehicle scrapyard
  • stolen – you’ll have to apply for a refund separately
  • exported out of the UK
  • registered as exempt from vehicle tax

There’s no other way to cancel your vehicle tax.

How you will I get the refund

If you pay for your car tax by Direct Debit this will be cancelled automatically, if you didn’t then You’ll automatically get a refund cheque for any full months left on your vehicle tax. The refund is calculated from the date DVLA gets your information. The cheque is sent to the name and address on the vehicle log book.

How much will the refund be

The amount reimbursed will be based on the date that the DVLA receives the confirmation of cancellation. As that’s the case, it’s best to notify the DVLA as soon as possible so you don’t risk losing a months’ worth of money unnecessarily.

You won’t get a refund for:

  • any credit card fees
  • the 5% surcharge on some direct debit payments
  • the 10% surcharge on a single 6-month payment

If your refund doesn’t arrive

Contact DVLA if you haven’t got your refund cheque after 6 weeks.

Further information

  • a refund cannot be backdated
  • no refund is payable for tax that has expired or which expires in less than on complete month
  • no refund is payable in cases when the tax surrendered is void because the cheque used in payment has been subsequently dishonoured
  • you must not apply for a refund if your vehicle is in the process of having its registration number transferred or retained

be aware of the car tax refund scam, it has been reported that criminals are emailing people pretending to be from the DVLA (Driver and Vehicle Licensing Agency) and offering to pay the car tax refund.

These emails ask recipients for their bank details, as well as other information, such as internet banking passwords and log-ins, so the car tax ‘refund’ can be processed. In fact, the fraudsters plan to use this information to empty their victims’ bank accounts.

Even if you have contacted them about your car tax refund and are expecting an email in return, make sure you keep your wits about you; the DVLA says it would never ask licence holders to send in bank details via email.