If, like me you have a habit of tearing your new road tax disc when removing it from the perforated background it’s delivered in, you’ll be pleased to know that after 93 years the requirement to display a tax disc is about to be scrapped.
Chancellor George Osborne recently announced that from October 2014 the DVLA and police will swap to an electronic system.

Why the change to Road Tax?

The move from paper to paperless is something that has been on the DVLA’s agenda for some time and is expected to save an estimated £7m as well making the process of taxing your car and policing whether or not you’ve paid it – hassle free.

What does this mean for you?

Well, there’s good and bad news. The good news is that for the first time, motorists will be able to pay their tax or vehicle excise duty (VED) on a monthly basis via direct debit making it altogether more affordable and convenient (this privilege does however come at a 5% increase in what you’ll have to pay).
The levy for paying 6 months at a time has also been reduced from 10% to 5%.
If you’re someone who likes to pay your road tax annually in advance there will be no additional charges and for those that haven’t embraced the online world, you can still tax your car over the phone or at the post office.
The bad news is, that if you’re selling your car you can’t pass the benefit of your pre-paid road tax to a new owner.

Increased anxiety?

For me, knowing that my tax disc was up to date and on display was always reassuring when examined at by a police officer. It remains to be seen if the new digital system will work as well but I will certainly be more apprehensive the next time I’m passing through a police checkpoint.