Driving Without Tax: Is It Legal?

Tax is one of the most important aspects of car ownership. Alongside insurance, maintenance and fuel, it's one of the main long-term costs for motorists, and it's essential to be aware of how it works. This guide will talk you through everything you need to know and explain the rules around driving without tax.

By Gumtree Editorial Team

23 August 2021 7 min read

What is road/vehicle tax?

Officially known as Vehicle Excise Duty (VED), tax has been applied to the majority of motor vehicles in the UK since the 1930s. The Driver and Vehicle Licensing Agency (DVLA) is the government body currently in charge of collecting these taxes. A car owner is responsible for paying tax on any vehicle they use, and there are penalties involved if you’re driving without tax.

What happens if I don’t tax my car?

The DVLA has a digital record of all vehicles that are registered for tax, and checks are carried out monthly to make sure all motorists are paying what they owe. Like with any tax avoidance, non-payment of VED can lead to some serious consequences. These include:

A fine of £80. This is the minimum penalty imposed by the DVLA, though it can be reduced by half if it’s paid within 28 days. If it isn’t paid, you could end up going to court, and facing a fine of up to £1,000.
A fixed penalty notice (FPN) of up to £1,000. This can be applied if you’re caught driving an untaxed car by the police and is usually payable on the spot.
A fine of up to £1,000. This applies if you’re found to be driving a car that should be taxed at a more expensive rate than the one you’ve been paying.
Clamping/impounding fees. If you’re found to not be paying VED, your car may be clamped. If this is the case, you’ll be liable for a release fee of £100, unless the tax is paid within 24 hours. There could also be a “surety deposit” of between £160 and £700, depending on the vehicle, which will be refunded if tax is paid within two weeks. Impounding costs will end up being even higher.

What if I’m no longer driving my car?

VED applies to the vast majority of motor vehicles, regardless of how often they’re being used. So even if your car has just been sitting in your driveway or garage for a long time, you’ll still technically be driving without tax if you don’t pay VED.

If you do wish to stop using a car completely, or if you’re only driving it on private land and never on public roads, then you can declare this to the DVLA in order to no longer be liable for tax. This is known as a Statutory Off-Road Notification (SORN). Important things to remember about SORNs are:

Registering a car with a SORN can be done online, or by using tax form V890
If you want to start using a car again after it’s been declared with a SORN, you’ll need to apply to cancel this status.
Don’t drive a car that’s been declared with a SORN. It’s a more serious offence than driving without tax, and you could face a fine of up to £2,500 if you’re caught.

Taxing new cars

If you’re buying a new car, it’s likely already been registered for road tax. If they haven’t already, you can just ask the dealership to do this for you. Importing cars usually entails registering and taxing them yourself, by completing a V55/4 form.

Taxing used cars

After selling a car, the owner will apply to cancel its tax status, and inform the DVLA that it’s changing ownership. This means that used cars will not be taxed when you buy them.

If you buy a used car from a dealer, they can just tax the car for you. Otherwise, you’ll need to ask the seller for the green section of the car’s logbook. This is known as the ‘new keeper supplement’ or V5C/2 form. You can find the vehicle’s reference number on this form, and then use it to register the car for tax online, or do this at the Post Office.

Are there any exemptions/discounts?

Although most motor vehicle owners will be required to pay tax on them, there are some exemptions and discounts available. These include:

Taking a car to an MOT. If you’re on your way to a pre-booked MOT test for your car, then it won’t be an offence to drive it without tax. However, there are restrictions on how far and how long the journey can be. If it seems as though you’re doing anything other than making your way to the MOT test, you could still face a fine.
Drivers with disabilities. People with disabilities often rely on their vehicle for basic everyday activities, and they could be eligible for a road tax exemption.
Eco-friendly cars. As an incentive for drivers to use more eco-friendly vehicles, road tax discounts are available for some cars. These are usually dependent on the car’s engine type, its age, and its carbon emissions rating. Newer hybrid-electric vehicles, which are designed to have lower emissions than ones running purely on fossil fuels, usually qualify for lower tax rates. Always check out what tax band your car will fall into before you buy.

Now you’re familiar with all the important aspects of paying road tax (VED). Apart from in a few specific circumstances, driving without tax isn’t an option, so make sure you’re paying what’s due. For more specific details about how to register and what exemptions may apply, take a look at the DVLA website. If you check out available cars here on Gumtree, you can find out more about specific vehicles and what their tax rates are likely to be.

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