Recently sold your car? You could still be paying the road tax on it. Not only that, but you could find yourself with a fine of £1,000 or more.

Paying the penalty

Since 1 January 2004, the registered keeper of a vehicle (the person named in the DVLA's records) remains responsible for taxing a vehicle until that liability is formally transferred to another person. So flogging your motor won’t be lucrative if you don't inform the DVLA that it has been sold or, indeed, transferred, scrapped or exported. The new rules mean that car owners who fail to re-license their vehicle will incur an automatic penalty of £80 (reduced to £40 if paid within 28 days). Determined offenders will be faced with prosecution and could be fined a minimum £1,000. Which means that if you don’t inform the DVLA that your car is no longer in your possession, you could be mistakenly taken for a wrong ‘un.

Notifying the DVLA

Once you've sent notification, the DVLA will issue an acknowledgement letter that should be kept as proof that the vehicle record has been changed. If you have a vehicle, but don’t intend to use it or keep it on a public road, then a SORN declaration is the way forward. It’s valid for 12 months, and failure to renew it will incur a penalty. The new regulations are aimed at reducing the number vehicles on the road that are unsafe or without car insurance – because a car can’t be issued with a tax disc without first having an MoT certificate and an insurance certificate. The reinforcing of the requirement for car owners to notify the DVLA of changes is intended to improve the accuracy of the record, making it easier for the police to trace the owners of abandoned cars and those used in criminal activities. A penalty can be avoided simply by ensuring your tax disc is kept up to date. Just fill in the relevant section of renewal reminder form V11 and take it to a licence-issuing Post Office branch. It’s form V10 to apply for a new tax disc. You’ll need to take it and your car’s logbook to the Post Office.