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After 93 years the circular paper tax discs that sit on car windscreens will become a thing of the past, However it is not being abolished it will just become digital and car owners will now be given the option to pay by monthly instalments and direct debit.

So how will the new system work? Police cameras will check a car’s number plate to see if the vehicle is taxed. If it isn’t, the registered keeper can expect a fine in the post.

The company that provides car history checks have warned that motorists could easily fall foul of the new regime and end with a fine or penalty charges against a vehicle they no longer own.

The rules put the onus on used-car sellers to inform the Driving Vehicle and Licensing Agency (DVLA) when they no longer have responsibility for a vehicle.

Sellers who fail to inform the DVLA could be fined and they will be liable for any speeding or parking fines and vehicle tax for a car they don’t even own any more.

The DVLA will send a reminder when your vehicle tax is due to expire, as it does now.
You can apply to renew the tax online using the 16-digit reference number from the vehicle tax renewal reminder (V11) or the 11-digit reference number from the log book (V5C). Motorists without internet access will still be able to tax their cars by telephone or in person at a post office.
But as of yet no it is still unclear as to how the DD process will work and when this will be available.