Author: Bryn Davies

Tax disc axed after 93 years

Chancellor George Osbourne has announced that the road tax disc will be axed and replaced with an electronic system in October.

The announcement was made in the Chancellor’s Autumn Statement and it revealed that the new system will allow motorists to pay the tax charge by monthly direct debit.

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The tax disc was introduced in 1921 as a way of proving who pays their road tax, but with the DVLA and police relying increasingly on an electronic register the move to scrap the physical tax disc has been proposed.

Currently motorists can pay their tax in twelve or six month instalments but a new option to pay by monthly direct debit will be introduced, it’s expected to cost you 5% more than paying for the full year in one go but it has the advantage of splitting the cost over twelve months.

The changes are expected to come into effect in October 2014 with a spokesman from the Treasury stating that the proposal shows that the government is ‘moving into the modern age’. adding that it would make ‘dealing with government more hassle free’.

What are your thoughts on the government getting rid of the tax disc? Leave a comment below and let us know!