George Osbourne to announce end of the road for car tax disc

News Shopper: George Osbourne to announce end of the road for car tax disc George Osbourne to announce end of the road for car tax disc

AFTER more than 90 years affixed to British motorists' cars, the tax disc is to be scrapped and replaced with a modern electronic system, Chancellor George Osborne will announce today.

For the first time motorists will also be able to pay for their vehicle excise duty (VED) by monthly direct debit, spreading the burden for hard-pressed drivers, although this will cost an extra five per cent.

The extra charge for paying for six months at a time will be reduced from 10 per cent to five per cent and the two measures are expected to save motorists who spread their payments over £20 million a year.

Scrapping the tax disk is expected to save businesses a total of £7m a year in administration costs, but customers who are not online will still be able to tax their car in person at a Post Office or on the phone.

A Treasury spokesman said: "This is a visual symbol of how we are moving government into the modern age and making dealing with government more hassle free."

The changes will be legislated for in next year's Finance Bill and will come into effect from October next year.

Officials said the tax disc was no longer needed for enforcement purposes, with the Driver and Vehicle Licencing Agency and police already relying on an electronic register.

The number of visual notifications by the police has fallen by 75 per cent since 2008, the Treasury said.

Vehicle tax was introduced in the 1888 budget and the system of excise duty applying specifically to motor vehicles was introduced in 1920, with the tax disc appearing the following year.

Comments (9)

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10:14am Thu 5 Dec 13

right-writes says...

Quote: "A Treasury spokesman said: "This is a visual symbol of how we are moving government into the modern age and making dealing with government more hassle free.""

Translation: This is great it means it will be so much easier to hide the staggering amount of cash we rifle from people's wallets, before they notice.
Quote: "A Treasury spokesman said: "This is a visual symbol of how we are moving government into the modern age and making dealing with government more hassle free."" Translation: This is great it means it will be so much easier to hide the staggering amount of cash we rifle from people's wallets, before they notice. right-writes

10:40am Thu 5 Dec 13

the wall says...

This is a precursor to rises. If you make it seem more palatable or easier to pay there is always a catch.
This is a precursor to rises. If you make it seem more palatable or easier to pay there is always a catch. the wall

10:54am Thu 5 Dec 13

Gypo.Joe says...

Now what am I going to do. I have always used a Guinness label in my windscreen.
Now what am I going to do. I have always used a Guinness label in my windscreen. Gypo.Joe

10:58am Thu 5 Dec 13

Hk says...

Sounds like a good idea to me.
Sounds like a good idea to me. Hk

11:44am Thu 5 Dec 13

j.j. says...

The direction is right, but the government needs to take much bigger steps to become hassle free. Just walk into any post office and look at the the mountain of paper based forms they have. Or observe how effectively nurses and doctors in NHS use (or don't use!) computers. The list is endless - millions of hours of time is wasted as we stick with our ways of doing things 20th century style.
The direction is right, but the government needs to take much bigger steps to become hassle free. Just walk into any post office and look at the the mountain of paper based forms they have. Or observe how effectively nurses and doctors in NHS use (or don't use!) computers. The list is endless - millions of hours of time is wasted as we stick with our ways of doing things 20th century style. j.j.

11:55am Thu 5 Dec 13

Eagles_Man says...

God forbid they might actually scrap VED and combine it with fuel duty. I suppose this way they can increase both taxes! Trebles all round (the Treasury)!
God forbid they might actually scrap VED and combine it with fuel duty. I suppose this way they can increase both taxes! Trebles all round (the Treasury)! Eagles_Man

12:13pm Thu 5 Dec 13

PaulErith says...

Makes perfect sense. In this technological age, we don't a piece of paper to display the tax. More importantly, I no longer have to get frustrated when I rip the thing trying to get it out of the perforated bit of paper that it arrives in.
Makes perfect sense. In this technological age, we don't a piece of paper to display the tax. More importantly, I no longer have to get frustrated when I rip the thing trying to get it out of the perforated bit of paper that it arrives in. PaulErith

2:50pm Thu 5 Dec 13

white rabbit9 says...

Has that man been sniffing cocaine again? Or was this the prostitutes idea?
come on osbourne make an announcement, who's idea was it?
Has that man been sniffing cocaine again? Or was this the prostitutes idea? come on osbourne make an announcement, who's idea was it? white rabbit9

8:26pm Thu 12 Dec 13

JPimenta says...

Sounds like a good idea
Sounds like a good idea JPimenta

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