How to cancel car tax & get a refund

You may want to cancel your car tax for a few reasons, from selling your car to taking it off the road. Whatever your reasons for doing so, find out how to cancel your road tax and get a refund. Cancelling your car tax is actually really easy and you can do it all online through the DVLA. You’ll only need a few bits of information and a payment method (if you need a refund). Find out below how to easily cancel your car tax.

What is road tax?

Road tax, car tax, or Vehicle Exercise Duty (VED) is a taxation enforced by the DVLA on UK cars. It’s an annual tax which drivers need to pay to be able to legally drive on UK roads. The tax can be paid annually or monthly and you can choose to pay the full year or for six months at a time. The amount you pay for road tax depends on the make and model of your car.

Find out more about UK car tax and how it works.

Why would I need to cancel car tax?

You need to inform the DVLA to cancel your car tax if:

You’ve sold your car or transferred the ownership to someone else.
You’ve declared it off the road (SORN).
Your car has been stolen.
Your car has been written off.
Your car has been scrapped or exported out of the UK.

How to cancel car tax:

Cancelling your road tax through the DVLA is easy! Head to the DVLA website and fill out their online form. You’ll need to tell them a couple of bits of personal information, why you want to cancel (from one of the reasons above), and you’ll also need your Vehicle Logbook handy (VC5).

If online services aren’t your thing, you can also cancel your road tax at the Post Office or by writing to the DVLA.

Once you’ve put in a submission, the DVLA will process your request and cancel your road tax. If you pay by Direct Debit, it will be cancelled automatically. If you’re due a refund, the DVLA will send a cheque to the name and address on the logbook.

If your refund cheque does not arrive after 8 weeks, contact the DVLA.

How much will my refund be?

When you cancel your car tax, you may be entitled to a refund. It can be hard to know exactly how much you’ll receive because it depends on how you’ve paid for your car tax and how long since you taxed the car. Car tax refunds are calculated from the date your first taxed your car.