How to claim a road tax refund
You can claim a road tax refund through DVLA (Driver and Vehicle Licensing Agency) if you have paid for a full year of tax but no longer need it — because you've sold the vehicle, taken it off the road, or the vehicle has been scrapped or destroyed. DVLA will refund the unused portion of your tax in full months, calculated from the first day of the month after you notify them. You do not need to wait for your tax disc to expire.
The refund process is straightforward: you tell DVLA when you want to stop the tax, provide proof that the vehicle is off the road (or has been sold or scrapped), and they calculate what you're owed based on complete months remaining. The money goes back to the payment method you used — usually your bank account if you paid by Direct Debit, or a cheque if you paid by other means. Most refunds arrive within four weeks of DVLA receiving your claim.
Key Takeaways
- You must notify DVLA before your road tax expires, either online, by phone, or by post, and provide proof the vehicle is off the road or has been sold.
- DVLA refunds only complete months of unused tax, so if you stop tax on the 15th of a month, you lose that entire month's payment.
- Refunds are sent to the original payment method — bank account for Direct Debit, or cheque for other payment types — within four weeks.
- If you sold the vehicle to a dealer or private buyer, you need proof of sale; if it was scrapped, you need a certificate from an authorised treatment facility.
- You cannot claim a refund after your tax has expired, so contact DVLA as soon as you know the vehicle will not be used.
Notifying DVLA to stop your road tax
You have three ways to tell DVLA you want to stop paying road tax: online through the DVLA website, by phone on 0300 790 6802, or by post using form V888 (Notification of Permanent Discontinuance of a Vehicle). The online method is fastest — you can do it in minutes and get immediate confirmation. Phone lines are open Monday to Friday, 8am to 7pm, and Saturday 8am to 4pm.
When you contact DVLA, have your vehicle registration number and the date you want the tax to stop ready. You must also be the registered keeper of the vehicle. If you're selling the vehicle, you can stop the tax from the date of sale; if you're scrapping it, from the date it goes to the scrapyard; if you're taking it off the road, from any date you choose going forward.
Do not wait until your tax is about to expire. DVLA can only refund unused tax, so if you contact them after expiry, there is nothing left to refund. If your tax has already expired and you believe you should have claimed earlier, contact DVLA to discuss your situation — they sometimes make exceptions for people who were unaware of the deadline.
What proof DVLA needs from you
The type of proof depends on why you're stopping the tax. If you sold the vehicle, DVLA needs evidence that it has left your ownership — either a receipt or bill of sale from a private buyer, or a receipt from a dealer. If the buyer is another private person, their name and address on the receipt helps, though DVLA does not always require it. If you sold to a dealer, their receipt is sufficient.
If the vehicle has been scrapped, you need a certificate from an authorised treatment facility (ATF) — the scrapyard or recycling centre must be registered with the Environment Agency (in England), Natural Resources Wales, or the equivalent body in Scotland or Northern Ireland. This certificate proves the vehicle has been properly dismantled and recycled. Without it, DVLA may not process your refund claim.
If you're taking the vehicle off the road but keeping it (for example, storing it or not using it for a period), you do not need proof of sale or scrapping. You simply tell DVLA the date from which you want to stop tax. However, if you later use the vehicle on a public road without valid tax, you can be fined up to £1,000, so only use this option if you genuinely will not drive it.
How DVLA calculates your refund amount
DVLA refunds tax in complete calendar months only, not in days or weeks. If your current tax runs until 31 March and you stop it on 15 February, you lose the entire February payment — DVLA refunds only March onwards. If you stop it on 1 March, you get a full refund for March and any remaining months. This means the date you choose to stop tax matters: stopping on the first day of a month maximises your refund.
The refund is calculated from the standard rate for your vehicle type and the number of complete months remaining. If you paid a reduced rate (for example, if your vehicle is historic or disabled), the refund is based on that rate. DVLA will tell you the exact amount before processing the refund, so you can see the calculation.
If you paid for tax by Direct Debit and you stop the tax mid-year, DVLA will also cancel your Direct Debit instruction so you are not charged again. If you paid by card or cheque, there is nothing to cancel — the refund simply goes back to you.
How long refunds take and how you receive the money
Most refunds arrive within four weeks of DVLA receiving your claim. If you claimed online, DVLA processes it faster — usually within two to three weeks. If you sent a form by post, allow extra time for postal delivery both ways, so four to six weeks is more realistic.
The refund is sent to the payment method you originally used. If you paid by Direct Debit, the money goes back to your bank account — this is the fastest method and usually arrives within a few days of DVLA sending it. If you paid by debit or credit card, DVLA sends a cheque instead (they cannot refund directly to cards). If you originally paid by cheque, you receive a cheque back. Cheques take five to seven working days to clear once you pay them in.
You can track your refund by contacting DVLA after two weeks if you have not heard anything. Have your vehicle registration number ready. If your refund has not arrived after six weeks, contact DVLA again — delays can happen, particularly around busy periods or if your claim was incomplete.
What to do if you sold the vehicle but the new owner has not taxed it
When you sell a vehicle, you must tell DVLA within five working days using form V5C/2 (the part of your registration certificate you send to DVLA). This transfers ownership to the new keeper. However, the road tax remains your responsibility until the new owner registers the vehicle and buys their own tax.
If the new owner does not tax the vehicle and it is driven on a public road, you can be held liable for the unpaid tax and any fines. To protect yourself, you can stop the tax immediately after selling — provide DVLA with proof of sale and ask them to stop the tax from the date of sale. This removes your liability. The new owner must then buy their own tax before driving the vehicle.
If you have already received a fine or penalty notice for unpaid tax after selling the vehicle, contact DVLA with proof of sale and explain the situation. They may cancel the fine if you can show the vehicle was no longer in your possession when the tax expired.
Refunds for vehicles that were damaged or written off
If your vehicle was damaged in an accident and written off by your insurance company, you can claim a road tax refund. You need to provide DVLA with a letter from your insurer confirming the vehicle is a total loss, or a salvage certificate if the vehicle was sold to a salvage company. The refund is calculated from the date the insurer declared it a total loss, not from the date of the accident.
If the vehicle was stolen and later recovered but is too damaged to repair, the same process applies — get confirmation from the police or your insurer and send it to DVLA along with your refund claim. If the vehicle was stolen and never recovered, you can claim a refund from the date you reported it to the police, provided you can show the police report.
Frequently Asked Questions
Can I get a refund if my tax disc has already expired?
No. DVLA only refunds unused tax — tax that has already expired cannot be refunded. You must contact DVLA before your tax runs out. If your tax expired recently and you believe you should have been told, contact DVLA to explain; they occasionally make exceptions, but this is not may provide.
What if I paid for road tax by card and I no longer have that card?
DVLA cannot refund to a card you no longer have access to. Instead, they will send you a cheque. When you contact DVLA to claim your refund, let them know your card is no longer active, and they will arrange for a cheque to be sent to your address on file. Cheques take five to seven working days to clear once you pay them in.
Do I get a refund if I change my vehicle to a lower tax band?
No. Road tax refunds are only for stopping tax entirely — when you sell the vehicle, scrap it, or take it off the road. If you replace your vehicle with a different one, you simply pay tax on the new vehicle. The tax on your old vehicle is forfeited unless you claim a refund before it expires.
Can someone else claim the refund on my behalf?
Only the registered keeper can claim a road tax refund. If you are no longer the registered keeper (for example, because you sold the vehicle), the new keeper cannot claim a refund on your behalf. If you are unable to contact DVLA yourself due to illness or disability, you can authorise someone to act on your behalf by providing DVLA with a signed letter and proof of your identity.
What happens if I stop the tax but then decide to use the vehicle again?
You can restart road tax at any time by buying a new tax disc through DVLA or a Post Office. However, you cannot drive the vehicle on a public road between stopping the tax and buying new tax — doing so is illegal and can result in a fine of up to £1,000. Once you buy new tax, you can drive immediately. There is no penalty for restarting tax; you simply pay the standard rate for the period you need.