How to Tax Your Car Online in the UK

Taxing your car online is the quickest and easiest way to get road legal. This guide takes you through the entire process step-by-step, explains payment options, and solves common problems.

Why Tax Online?

Benefits Over Other Methods

Online advantages:

• Takes 5 minutes
• Available 24/7
• Immediate confirmation
• Tax starts instantly
• Direct Debit option
• No Post Office queue
• No posting documents
• Instant email confirmation

Compared to alternatives:

• Phone: 0300 123 4321 (7am-7pm only)
• Post Office: Limited hours, need documents, queuing
• Post: Slow, risk of lost documents, weeks to process

Online is fastest, easiest, and most convenient.

What You Need Before Starting

Essential Information

1. Vehicle registration number

• Number plate (e.g., AB12 CDE)
• Check on car or V5C
• Case doesn't matter

2. V5C reference number

• 11-digit number
• Found on V5C logbook
• Or V5C/2 green slip (new keeper)

Where to find:

• Latest V5C: Top right corner
• V5C/2 slip: Clearly marked
• Format: 12345678910 (11 digits)

3. Valid MOT

• Car must have current MOT (if required)
• Checked automatically by system
• 3+ years old need MOT
• Ensures roadworthy

4. Payment method

• Debit/credit card
• Or set up Direct Debit
• Most cards accepted
• Apple Pay/Google Pay supported

5. Email address

• For confirmation
• Receipt sent immediately
• Keep for records

When You Can't Tax Online

Not available if:

• Car newly registered (wait 5 days)
• Just bought (V5C not updated yet - use V5C/2)
• Vehicle data being updated
• SORN needs removing first
• MOT expired
• Outstanding DVLA notifications

Solutions:

• Wait for V5C
• Use V5C/2 reference
• Renew MOT first
• Remove SORN online
• Call DVLA if urgent

Step-by-Step: Tax Your Car Online

The Complete Process

Step 1: Go to gov.uk/vehicle-tax

Direct link:

https://www.gov.uk/vehicle-tax

Or:

• Google "tax my car"
• Select gov.uk result
• Click "Start now"

Step 2: Enter vehicle registration

You'll need:

• Registration number (e.g., AB12 CDE)
• Click "Continue"

System checks:

• Vehicle exists
• Current tax status
• MOT status
• Whether taxable

Step 3: Confirm vehicle details

System displays:

• Make and model
• Colour
• Fuel type
• Tax due date
• MOT expiry

Check everything correct:

• Wrong details? Don't continue
• Contact DVLA to correct
• Ensure it's your car

Step 4: Enter V5C reference number

11-digit number from:

• Your V5C logbook (latest)
• OR V5C/2 green slip (if just bought)

Example format: 12345678910

Enter carefully:

• All 11 digits
• No spaces
• Check twice

Step 5: Choose payment frequency

Three options available:

Annual (cheapest):

• Pay full year upfront
• No additional charges
• Best value
• One payment

6-monthly:

• Pay twice per year
• 5% surcharge
• Two manageable payments
• Slightly more expensive

Monthly (most expensive):

• Pay by Direct Debit
• 10% surcharge over annual
• 12 small payments
• Budget-friendly

Example - £190 standard rate:

• Annual: £190 (one payment)
• 6-monthly: £99.75 × 2 = £199.50 (+£9.50)
• Monthly: £17.42 × 12 = £209 (+£19)

Step 6: Payment details

For Annual/6-monthly:

• Enter card details
• Debit or credit
• Apple Pay/Google Pay accepted
• Processed immediately

For Monthly Direct Debit:

• Bank account details
• Sort code
• Account number
• Account holder name
• First payment taken immediately

Step 7: Confirmation

You'll receive:

• On-screen confirmation
• Tax reference number
• Email confirmation
• Receipt for records

Your car is now taxed:

• Effective immediately
• ANPR cameras updated within minutes
• Can drive legally
• No paper disc needed

Keep confirmation email:

• Proof of payment
• Reference number
• Date taxed
• Payment amount

Payment Frequency Explained

Choosing What's Right

Annual payment:

Best for:

• Those who can afford lump sum
• Want lowest cost
• Don't want to think about it
• One payment per year

Pros:

• Cheapest option
• Pay and forget
• No surcharge
• Best value

Cons:

• Large single payment
• Must remember to renew
• No automatic renewal

6-monthly payment:

Best for:

• Can't afford annual lump sum
• Want some flexibility
• Prepared to pay small extra

Pros:

• Split into two payments
• More manageable
• Only 5% extra
• Still reasonably cheap

Cons:

• £10-£20 extra per year
• Two payments to remember
• Manual renewals

Monthly Direct Debit:

Best for:

• Tight monthly budget
• Want automatic payments
• Spread cost over year
• Don't mind 10% extra

Pros:

• Small monthly amount
• Automatic collection
• Never forget
• Budget-friendly
• Can cancel anytime

Cons:

• 10% more expensive annually
• Direct Debit setup needed
• Bank details required
• Ongoing commitment

Monthly Direct Debit Details

How it works:

Setup:

• First payment taken immediately
• Covers first month
• Future payments automatic
• 1st of each month

Example - £190/year car:

• Monthly payment: £17.42
• First payment: Immediate
• Subsequent: 1st of month
• 12 payments total
• Year's tax: £209 (£19 extra)

Managing Direct Debit:

• View at gov.uk
• Change bank details
• Cancel anytime
• Switch to annual

Cancelling:

• Can cancel Direct Debit
• Must pay alternative method
• Or car becomes untaxed
• Set up new payment

Automatic renewal:

• Continues automatically
• No need to renew
• Increases if VED rate rises
• Notification sent if changes

Special Circumstances

Just Bought a Car

Before V5C arrives:

Use V5C/2 green slip:

• Seller gives you at purchase
• Green new keeper supplement
• Has 11-digit reference number
• Use this to tax online

Process:

1. Use V5C/2 reference number
2. Tax online immediately
3. Legal to drive
4. Full V5C arrives in 2-6 weeks

Important:

• Tax immediately after purchase
• Tax doesn't transfer from previous keeper
• Seller gets automatic refund
• You must tax before driving

Renewing Existing Tax

When to renew:

• Up to 2 months before expiry
• Don't wait until last minute
• Starts from current expiry date
• Not from payment date

Example:

• Tax expires: 31 March
• Renew: 1 February
• New tax starts: 1 April
• Don't lose time

Reminders:

• DVLA sends renewal letter
• Arrives about 2 weeks before
• Contains reminder code
• Can tax without letter using V5C

No grace period:

• Tax must be current
• Expires at midnight on due date
• Illegal to drive from 00:01 next day
• Immediate penalties apply

Electric Vehicles

Currently (until April 2025):

• £0 VED
• Must still tax vehicle
• Shows as taxed at £0 rate
• Required by law

Process:

1. Go to gov.uk/vehicle-tax
2. Enter details
3. Select £0 payment
4. Receive confirmation
5. Vehicle taxed (no cost)

From April 2025:

• Electric vehicles will pay VED
• £0 first year
• £190/year standard rate thereafter
• Process same as petrol/diesel

First Time Registration

New cars:

• Dealer usually handles
• First year VED included
• V5C sent to you
• Tax from first registration

Imported vehicles:

• Must register with DVLA first
• Receive V5C
• Then tax online
• Check import requirements

Wait 5 days:

• After first registration
• System needs to update
• Then can tax online
• Call if urgent

Checking Your Tax Status

Verify Tax Is Active

Free online check:

• gov.uk/check-vehicle-tax
• Enter registration number
• Instant status

Shows:

• Tax status (taxed/untaxed/SORN)
• Tax expiry date
• MOT status
• MOT expiry date

Why check:

• Confirm payment processed
• Verify dates correct
• Peace of mind
• Before long journey

ANPR cameras:

• Updated within minutes
• Automatic checking
• Don't rely on old system timing
• Usually immediate

Common Issues and Solutions

Problem 1: Reference Number Not Recognized

Possible causes:

• V5C reference number incorrect
• V5C/2 not yet processed
• Recently purchased car

Solutions:

• Check number carefully (11 digits)
• Try V5C/2 if just bought
• Wait 24 hours if very recent purchase
• Call DVLA if continues: 0300 790 6802

Problem 2: Vehicle Shows No MOT

Issue:

• Car needs valid MOT
• System won't let you tax
• Over 3 years old

Solution:

1. Book MOT immediately
2. Pass MOT test
3. Wait 1 hour for system update
4. Then tax online

Can't tax without valid MOT.

Problem 3: Payment Declined

Reasons:

• Insufficient funds
• Card expired
• Bank security block
• Wrong details

Solutions:

• Check card details
• Verify funds available
• Call bank if blocked
• Try different card
• Use Direct Debit alternative

Problem 4: Vehicle Shows SORN

SORN active:

• Can't tax until removed
• Must remove SORN first
• Then tax immediately

Remove SORN:

1. Go to gov.uk (automatically done when taxing)
2. Tax vehicle
3. SORN automatically cancelled
4. Can drive legally

Or remove separately:

• Call DVLA
• SORN cancelled
• Then tax

Problem 5: Recently Purchased, System Won't Accept

Too soon after purchase:

• V5C updating
• System not yet refreshed
• Typically 24-48 hours

Solutions:

• Wait 24-48 hours
• Use V5C/2 reference if available
• Call DVLA if urgent
• Seller to confirm they notified DVLA

Problem 6: Direct Debit Failed

Payment bounced:

• Insufficient funds
• Account closed
• Bank rejected

Consequences:

• Car becomes untaxed
• Penalties apply
• Must tax immediately

Solutions:

1. Update bank details
2. Make manual payment
3. Set up new Direct Debit
4. Ensure funds available

DVLA will:

• Email notification
• Give opportunity to pay
• Penalties if not resolved

After You've Taxed

What Happens Next

Immediate:

• Car legally taxed
• ANPR cameras updated
• Can drive on public roads
• Email confirmation received

Within days:

• DVLA records updated
• Appears on tax checking service
• Insurance companies notified
• All systems synchronised

No paper tax disc:

• Abolished in 2014
• Everything electronic
• Nothing to display
• Cameras check automatically

Keep:

• Email confirmation
• Payment reference
• Screenshot of confirmation
• For your records

Setting Renewal Reminders

DVLA reminder:

• Sent automatically
• 2 weeks before expiry
• By post
• Contains renewal code

But also set your own:

• Phone calendar alert
• Email reminder
• 1 month before expiry
• Don't rely solely on DVLA

Why multiple reminders:

• DVLA letter may not arrive
• Postal delays
• Your responsibility
• No grace period

Suggestions:

• Set annual calendar reminder
• Note expiry on car
• Regular checking
• Monthly Direct Debit removes worry

Cost Saving Tips

Reduce Your VED

Choose annual payment:

• Save 10% vs monthly
• Worth it if affordable
• One payment per year

Example saving:

• Monthly: £209/year
• Annual: £190/year
• Save: £19/year

Set Direct Debit:

• Never forget renewal
• Automatic payment
• No penalty risk
• Worth 10% for peace of mind

Consider when buying:

• Lower emission cars
• Electric (£0 until April 2025)
• Avoid £40k+ cars (supplement)
• Check VED before buying

Renew online:

• Avoid Post Office fees
• No travel costs
• Immediate
• Convenient

Legal Requirements

Must Tax Before Using Road

The law:

• Road Traffic Act 1988
• Must have valid tax
• Public road use
• Includes street parking

Penalties:

• Untaxed: £80 fixed penalty
• Court: Up to £1,000 fine
• Vehicle can be seized
• Criminal record possible

ANPR detection:

• Automatic cameras
• Continuous monitoring
• Instant detection
• Very high catch rate

No excuses:

• "Forgot" not acceptable
• No grace period
• Immediate penalties
• Your responsibility

SORN Alternative

If not using car:

• Declare SORN
• Statutory Off Road Notification
• No tax needed
• Must be off public road

Process:

• gov.uk/make-sorn
• Free declaration
• Immediate effect
• Lasts until you tax car

Requirements:

• Private property only
• Not on street
• Driveway acceptable
• Garage acceptable

Summary

Key Takeaways:

Taxing online:

• gov.uk/vehicle-tax
• Takes 5 minutes
• Available 24/7
• Immediate effect

What you need:

• Vehicle registration
• V5C reference (11 digits)
• Valid MOT (if required)
• Payment method
• Email address

Payment options:

• Annual: Cheapest (no surcharge)
• 6-monthly: 5% extra
• Monthly DD: 10% extra, automatic

Just bought car:

• Use V5C/2 green slip
• Tax immediately
• Can drive legally
• Full V5C arrives later

Renewal:

• Up to 2 months early
• Starts from expiry date
• Set reminders
• No grace period

Common issues:

• Reference not working: Check carefully
• No MOT: Renew first
• SORN: Removed automatically when taxing
• Just purchased: Wait 24 hours or use V5C/2

Monthly Direct Debit:

• Set up once
• Automatic payments
• Never forget
• 10% extra but worth it

After taxing:

• Immediate confirmation
• ANPR updated quickly
• No paper disc needed
• Keep email proof

Remember:

• Tax before driving
• No grace period
• Penalties severe
• Your legal responsibility
• ANPR cameras detect immediately

Taxing your car online is quick, easy, and convenient. The entire process takes less time than making a cup of tea, and you're immediately legal to drive. Set up Direct Debit to never worry about renewals, or pay annually to save money - either way, keep your car legal and avoid penalties.