How to Get a DVLA Car Tax Refund

To claim a DVLA car tax refund:

1. Notify the DVLA of your vehicle’s status change (sold, scrapped, SORN, etc.).
2. Use GOV.UK online services or send your V5C logbook by post.
3. DVLA will automatically issue a refund for full unused months.
4. Refunds are sent by cheque to the registered keeper’s address.

Yes, you can get a DVLA car tax refund for any full months of unused Vehicle Excise Duty (VED), commonly known as road tax, once you no longer own or use your vehicle. The Driver and Vehicle Licensing Agency (DVLA) automatically process this refund after you notify them of a change in your vehicle’s status, such as selling it, declaring it off-road (SORN), scrapping it, or if it has been stolen or written off. Refunds are typically issued by cheque to the registered keeper’s address.

What is a Car Tax Refund (VED Refund)?

A car tax refund, also known as a road tax refund or Vehicle Excise Duty (VED) refund, is a reimbursement from the DVLA for any vehicle tax you’ve already paid for but will no longer use. Since car tax is non-transferable to a new owner or vehicle, it’s essential to cancel your tax when your vehicle’s circumstances change to avoid paying for a car you no longer use. This process can put money back in your pocket and ensure compliance with UK regulations.

When Are You Eligible for a DVLA Car Tax Refund?

You are eligible for a car tax refund only if you inform the DVLA of a specific change in your vehicle’s status. The DVLA does not backdate refunds, so timely notification is crucial.

You qualify for a refund in the following situations:

• Selling or Transferring Ownership: When you sell your car or transfer it to a new owner, your tax responsibility ends, and the new owner must tax the vehicle afresh.
• Declaring Off the Road (SORN): If your vehicle is no longer used or kept on public roads and you’ve applied for a Statutory Off Road Notification (SORN), you can claim back unused tax. SORN vehicles must be kept on private land, such as a driveway or garage.
• Scrapping or Writing Off Your Vehicle: If your car is scrapped at an Authorised Treatment Facility (ATF), or declared a total loss (written off) by your insurance company, you are entitled to a refund.
• Stolen Vehicle: After reporting your vehicle stolen to the police and informing the DVLA, you can claim a refund. If you plan to keep a personalised registration number, you must apply for its retention separately.
• Exported Out of the UK: If your vehicle is permanently exported from the UK, you can claim back unused tax.
• Registered as Tax-Exempt: If your car becomes exempt from VED (e.g., certain electric vehicles, disability-exempt, or historic vehicles over 40 years old), you can apply for a refund.
• Vehicle Modifications: Significant modifications affecting your car’s tax band might also entitle you to a refund.

There are no other reasons allowed for cancelling your car tax.

How to Claim Your Car Tax Refund: Step-by-Step

The process for claiming a car tax refund is straightforward, usually initiated by notifying the DVLA of your vehicle’s status change.

2. Gather Required Documents: To notify the DVLA, you’ll generally need your V5C logbook (with the 11-digit document reference number) or the 16-digit reference number from your V11 road tax reminder form.

If you don’t have these, you may need to apply for a replacement V5C (which costs £25) or send a letter with vehicle details. If your car was written off or stolen, you may need to provide your insurance company’s details or a crime reference number. For scrapping, a Certificate of Destruction from an ATF is needed.

3. Automatic Refund Processing: Once the DVLA receives and processes your notification, they will automatically calculate and initiate your refund. You do not need to make a separate application for the refund itself.

4. Receive Your Refund: Refunds are typically issued via cheque and sent to the registered keeper’s address on file. The DVLA does not provide refunds through bank transfers or direct debits. Ensure your address details are up to date to avoid delays.

How Much Car Tax Refund Will You Get?

Reason for Refund	Required Action	Refund Method
Sold Vehicle	Notify DVLA online	Cheque
SORN	Apply via GOV.UK	Cheque
Scrapped	Submit Certificate of Destruction	Cheque
Stolen	Report to police + DVLA	Cheque

The amount refunded depends on how much prepaid tax remains. The refund is calculated based on full months of unused tax only. This means that if you cancel your car tax part-way through a month, you will not receive a refund for that partial month; the refund will start from the beginning of the next full month after the DVLA receives your information.

For example, if you pay road tax annually in January and scrap your car on June 15th, you will receive a refund for July to December, but not for the remainder of June.

Important Deductions and Exclusions:

You will not receive 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 you pay road tax monthly by Direct Debit, you won’t receive a refund for part-months; instead, future payments will simply stop automatically once the DVLA processes the notification.

If you request a refund within a year of the car being first registered, 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.

How Long Does a Car Tax Refund Take?

Most car tax refunds are processed within 6 weeks after the DVLA receives your notification. Some sources suggest online submissions might be quicker, around 3-5 working days.

What to Do If Your Refund Is Delayed or Missing

If you have not received your refund cheque after 8 weeks, or if the cheque contains incorrect information (e.g., the wrong name), you should contact the DVLA.

You can contact the DVLA using the following methods:

• Phone: Call 0300 790 6802 (lines open Mon-Fri 8am-7pm, Sat 8am-2pm).
• Post: Write to Vehicle Customer Services, DVLA, Swansea, SA99 1AR.
• Online: Use their online contact form or webchat service.

When contacting the DVLA, have your vehicle registration number and personal details handy to speed up the process. If a cheque is in the wrong name, return it with a note to Refund Section, DVLA, Swansea, SA99 1AL. Common reasons for delays include incorrect details, a change of address not updated with the DVLA, or processing backlogs.

Key Considerations for a Smooth Refund Process

• Timely Notification is Crucial: The refund is calculated from the date the DVLA receives your information, not the date of the event (e.g., sale or scrapping). A delay of even a few days can mean losing a full month’s tax.
• Legal Responsibility: It is your legal responsibility to inform the DVLA of any change in your vehicle’s status. Failure to do so can result in fines of up to £1,000 and ongoing liability for charges related to the vehicle. Driving an untaxed vehicle is illegal and can lead to immediate fines, clamping, or even seizure.
• Keep Records: Always keep a copy of your V5C and any correspondence with the DVLA to help track your refund and resolve potential issues.
• Other Refunds: While processing your car tax refund, consider contacting your insurer to cancel your car insurance policy and inquire about any pro-rata refunds on unused premiums. Note that there are no direct refunds for MOTs.

By following these guidelines, you can ensure a smooth and timely car tax refund process from the DVLA.

FAQ for DVLA Car Tax Refund