Can I Cancel My Car Tax?

The first step in cancelling your vehicle tax is to inform the DVLA that you no longer have the vehicle, or perhaps that it has been taken off the road. Maybe you’ve sold it or it's currently in the garage for a major renovation - the reason doesn’t matter, the DVLA just needs to be informed.

Once you've notified the DVLA, if you pay by Direct Debit, this will be automatically cancelled. There’s no need to stress about ongoing payments slipping through the cracks.

Now comes the good part, the refund! You will receive a refund cheque for any full months of remaining tax from the date DVLA receives your information. Please note that the refund cheque will be sent to the name and address listed on the vehicle log book, so make sure your details are up to date.

There are however a few exceptions; you will not receive a refund for credit card fees, a 5% surcharge on some Direct Debit payments, or the 10% surcharge on a single 6-month payment.

The refund amount will be based on whichever is lower: the first tax payment when you registered the vehicle or the rate for the second tax payment onwards.

Though unlikely, should your refund cheque not arrive after 8 weeks, you can contact the DVLA to find out more about your situation. Similarly, if your refund cheque arrives but is in the wrong name, you can return it to the DVLA along with the correct name for it to be reissued. If for some reason you have not received your replacement cheque after 4 additional weeks, do not hesitate to contact the DVLA again.

Cancelling your car tax and getting a refund doesn’t have to be an intimidating process, and we hope this guide has made it a bit simpler!

Here at Motor Match we have a variety of cars for sale with Road Tax for £0! Choosing a car with a £0 Road Tax fee ensures you are never out of pocket when waiting for a refund!