How do I tax a car?

Taxing your car is a necessity, but what if it’s already been taxed? Do you still need to tax it, or are you in the clear until it’s up for renewal? We’re answering your questions and everything else you need to know about car road tax in this guide.

Car tax? What's that?

Paying tax isn’t a topic that gets pulses racing, but it is a necessary evil. And we promise that if you read to the end of this, we will delight you with a very fun joke. 
 
Car tax is one of those essential expenses that’s part and parcel of car ownership. If you want to drive or park your car on a UK road without breaking the law, you’ll need to make sure it’s taxed first.
 
In fact, taxing your car should be at the top of your to-do list as soon as you’ve agreed to buy a car, signed all the paperwork, and have the keys in your hand.
 
Don’t panic; the process is a lot easier than you might think. All you need is your new car’s registration number and the completed new keeper slip from its V5C logbook – you could have the tax sorted online in a matter of minutes!
 
Ready to learn more? Here’s everything you need to know about how to tax a car:

Why do I have to tax my car?

If you plan on driving or parking your car on the road in the UK (and you probably do if you’re reading this), then it needs to be taxed.
 
Car tax is a legal requirement, and you could face serious penalties if you don’t pay up. The consequences can range from fines and court action to your car being clamped, impounded, or even crushed!
 
Don’t plan on moving your car this year? If you keep your pride and joy on your drive or safety tucked away in the garage, you can register it as officially off-road. This is known as making a Statutory Off-Road Notification - SORN for short.
 
Have a car that’s exempt from charges? Unfortunately, you’re not off the hook. You still need to go through the motions and tax your car, even if your bill comes to £0.

How do I tax a car I’ve just bought?

Congratulations - you’ve found your dream wheels, sorted out the finance, and have the keys in your hand! But wait, before you hit the road and start attracting those approving nods from jealous passerby, you need to tax the car.
 
There’s no grace period when it comes to car tax, so don’t be tempted to even drive the car home for the dealer if you haven’t got the tax in place.   
 
The good news is that it’s a relatively straightforward process. You can choose to pay at your local Post Office or online at gov.uk. Depending on your payment preferences, you can pay in full, bi-annually, or monthly either by Direct Debit or with a credit or debit card.
 
Don’t run straight to the website just yet, it’s worth double-checking the differences between taxing a brand-new car and a used model first:

How to tax your new car

When you buy a car fresh off the forecourt that’s never been driven before, it’ll usually already have been taxed by the dealer.
 
For the first 12 months of a car’s life, its tax will be based on its emissions. In most cases, that first year will be included in the on-the-road price offered by the dealer.
 
They’ll also typically have shared your details with the DVLA already, so you’re good to go until year two.

How to tax your used car

While buying a used car can help you save money on a new set of wheels, it often means missing out on perks like having your tax thrown in by the dealer.
 
Instead, you’ll be responsible for making sure your tax is paid before you drive away. You’ll need to complete the green new keeper slip of your new car’s logbook (V5C) first and then you can pay for your tax online at the gov.uk website or at your local Post Office.

How do I tax my car without a V5C?

To tax your car online or in person, you’ll usually need at least one of the below documents:

• A recent V11 vehicle tax reminder or last chance warning letter from the DVLA
• The vehicle’s logbook (V5C) in your name
• The completed green new keeper slip if you’ve just bought the car

Keep in mind that you might also need to show evidence of a valid MOT.

How much will my car tax cost?

The exact amount you’ll need to pay each year to tax your car will depend on how old it is and how much pollution it emits.

The tax is weighted to try and encourage people to swap their polluting cars for more efficient smaller models, hybrid cars, and electric vehicles.
 
Your bill will also depend on when your car was registered:

If it’s more than 40 years old, your car will likely be exempt from car tax

If it was registered before 1st March 2001, your tax will be based on its engine size

Between 1st March 2001 and 1st April 2017, your car will be taxed based on its CO2 emissions

Models registered after 1st April 2017 will have their first year’s tax based on CO2 emissions

How do I check when the tax is due? 

In most cases, you’ll receive a reminder letter – known as the V11 – when your car tax is due. Some dealerships and garages will also remind you when your MOT is due, which can be helpful if it coincides with your tax due date too.
 
If you don’t receive a reminder or would like to check the date ahead of time, you can use the DVLA’s online road tax check service.

What about that joke?*

You made it all this way! Through all that tax stuff. Thought we might have lost you at the V5C bit but you persevered.

So! A joke for you…

What do you say to a frog who needs a ride?
“Hop in.”

*Carmoola is not liable for the quality of any jokes. 😅