How to cancel car tax

Reasons for cancelling your car tax

According to DVLA (Driver and Vehicle Licensing Authority), a few reasons allow motorists to cancel their car tax in the UK, for example, if:

You no longer own your car. This includes selling your car or transferring ownership to someone else as a gift.
Your car is no longer in use. This includes having it parked in a garage or exporting your car abroad. As such, it’s no longer in use on UK roads.
Your car has been written off. In this case, DVLA needs to be notified.
You’ve had your vehicle scrapped at an Authorised Treatment Facility (ATF).
Your car is categorised as exempt from road tax in the UK. This applies to most fully electric cars and historic vehicles over 40 years old.
Your car has been stolen. In this case, your car tax will be cancelled once you notify DVLA that your car has been stolen.

Mileage tracking made easy

Trusted by millions of drivers

Automate your mileage log Automate your mileage log

Claim your deductions

Reclaim your time

Automatic mileage tracking and HMRC-compliant reporting.

Get started for free Get started for free

How to cancel your car tax

While your road tax does not automatically cancel with a change of circumstance like the sale of the car, the good news is that it’s very easy to cancel it yourself. As you begin, please ensure you have the following documents on hand:

Your V5C logbook
Your payment method
Your name, address, and postcode (if the car is registered in your name)

Once you have the required documents, follow these steps to cancel your road tax:

Ascertain the end date for your current vehicle tax. Your V5C logbook should help you with this. If you don’t have your V5C logbook, you can also check the date your current road tax expires using your car’s registration number.
You will then need to fill out and submit the V11 form, particularly if you wish to apply for a SORN (Statutory Off-Road Notification). You can submit your V11 form via gov.uk or post.
Wait for the confirmation of your request to cancel car tax from DVLA. If you have paid via Direct Debit, it will automatically be cancelled.

Cancel car tax online

To cancel your car tax online, simply use DVLA’s online car tax service to inform them of your reason for cancelling car tax. Once you have completed the process, your refund for any prepaid months should be processed within 8 weeks.

DVLA car tax refund

Once you have notified DVLA of vehicle tax cancellation and they have confirmed, your road tax will be cancelled and a refund will automatically follow.

Please note that DVLA will calculate your refund for any full months left on your road tax.

This means the costs of the remaining months in the year if you have paid annually.

Example: If a driver applies to cancel their road tax at 7,5 months, they can expect to receive a refund for 4 months. Remember that this applies if you have paid for the full year in advance.

DVLA also offers the option for motorists to pay the road tax monthly or every 6 months, with an additional surcharge.

The refund process

DVLA will process a cheque to the registered address and holder on the V5C logbook within 6-8 weeks of the car tax cancellation.

If you have not received your refund within 8 weeks of cancelling your car tax, you can contact DVLA.

Exceptions to the refund

You will not receive a refund for the following:

Any credit card fees
The 5% surcharge included with Direct Debit payments
The 10% surcharge on a single 6 month payment

Freezing car tax payments

You can’t freeze your car tax payments, but you can still cancel your car tax if your car is no longer being used on the road, or you have transferred ownership to another owner.

If your vehicle is being taken off the road, you must inform DVLA about this with a SORN. You can apply for a SORN online and will need either:

A 11-digit number in your vehicle log book (V5C), or
The 16-digit reference number on your vehicle tax reminder

Note: Keep in mind that you will need to tax your car again before it’s used on the road again. If you have sold your vehicle you do not need to file a SORN. Instead, you will simply need to inform DVLA.

FAQ

Is my car still taxed if I cancel my insurance?

Drivers will need an insurance policy in place to tax their cars. However, if you have cancelled your insurance policy, you will still need to notify DVLA of your intention to cancel your car tax.

How do I cancel my Direct Debit for car tax?

Once you have informed DVLA that you want to cancel your car tax, your Direct Debit will be automatically cancelled by them. A refund will then be processed for any full months left on your car tax. If you cancel your Direct Debit very close to a payment date, DVLA may still take the payment but you can expect to get a refund within 10 working days.

How do I transfer taxes from one car to another?

Unfortunately, you are not able to transfer your road tax from one car to a new or second hand car. This was enforced in 2014 when legislation stipulating that road tax is non-transferrable came into play.