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How To Cancel Car Tax and Get Your Money BackHow To Cancel Car Tax and Get Your Money Back
Taxes are a less exciting part of life, and all car owners must pay car tax on their vehicles.
From April 2025, this will also include electric car drivers, and you can’t avoid this tax unless your car is exempt or over 40 years old.
Selling your car? You can cancel your car tax and get a refund for any unused months by simply notifying the DVLA.
In this article, we’ll cover how to cancel car tax (even without a V5C) and when you can expect your money back.
What is car tax?
Car tax is a tax all vehicle owners and drivers need to pay.
It’s also known as road tax or Vehicle Excise Duty (VED). However, the money doesn’t only go towards road maintenance or building.
The government enforces cheaper car tax rates on lower-emission cars to encourage drivers to make greener choices.
Fun fact: The first vehicle tax was introduced in Britain as early as 1888.
How to cancel car tax in the UK
To cancel your car tax, you must contact the DVLA. The easiest way to do this is through the online car tax refund portal.
Cancelling road tax is part of the process when you inform the DVLA about selling, scrapping, or declaring your car SORN. Refunds are handled alongside confirming these actions.
You can also speak to someone via the website’s live chat service or via the contact email address provided.
Pro Tip: Whatever contact route you chose, you’ll need a V5C or V11 tax reminder nearby.
You can also contact the DVLA by post, via:
DVLA
Swansea
SA99 1AR
Why should you cancel your car tax?
You must give the DVLA a valid reason when you cancel your car tax.
Common reasons for cancelling road tax include:
- Car sold or transferred to a new owner
- Stolen car
- Car exported out of the UK
- Declared as off the road (SORN)
- Written off by the insurance company
- Scrapped by a scrapyard
- It’s now registered as tax-exempt
There aren’t any other reasons for not paying car tax.
If you are the registered keeper of an untaxed vehicle, you can be fined up to £80. This amount will be halved if you pay within 28 days.
Can I cancel car tax without V5C?
When cancelling your car tax, you’ll need your V5C—found on the front of your car’s logbook.
You need the V5C to prove you’re the registered owner of the car. It has a code that you must give to the DVLA to secure a tax refund.
Don’t have your V5C? You can cancel car tax without v5. But instead, you’ll need a V11.
The V11 is a document issued by the DVLA to remind you to tax the car or to confirm it’s SORN.
What if you don’t have any forms?
Can’t find your V5C or V11? Don’t panic.
You can order replacement V5Cs before you request tax refunds or sell your car. They cost £25 and can be ordered online or via phone.
How much money do you get from a car tax refund?
How much money you get from a cancelled tax refund depends on how you paid.
For example, if you pay car tax via direct debit, the DVLA will cancel future payments.
You'll receive a refund for unused months if you've paid for a full year in advance.
Refunds requested within a year of car registration are based on the lower of your first payment or the rate for subsequent payments. The refund is calculated from the date the DVLA receives your info, not when you send it.
Direct debit payments will be automatically cancelled as well. Easy!
Step-by-step guide for cancelling your car tax
Ready? Follow the steps below to cancel tax on a car:
- Select your contact method — Online via form or chat, or by post.
- Tell the DVLA why you’re cancelling the tax — Make sure you have your V5C logbook or V11 form.
- Wait until the DVLA processes your cancellation — This can take up to 10 working days.
- Await payment — The DVLA will send your refund via post. More about this below!
How will I be paid my car tax refund?
Car tax refunds are paid by postal cheque. Although you may have been paying electronically, the DVLA still works via paper.
Payments are sent to the address where the car was registered.
If you receive a cheque with incorrect information (e.g., the wrong name), you can return it with a note to:
Refund Section
DVLA
Swansea
SA99 1AL
How long do car tax refunds take?
Typically, the DVLA takes up to 10 business days to process car tax refund applications.
Once your refund is confirmed, the payment will be sent out and may take up to 10 more business days to arrive.
As a rule of thumb, if you don’t receive your payment or hear back within four weeks, you should contact the DVLA again.
What if my car tax refund doesn’t arrive?
If over eight weeks have passed without communication or your refund, you must contact the DVLA.
You can do this via email, phone, or post.
- Email — Use the DVLA web form
- Phone — 0300 790 6802
- Post — Vehicle Customer Services, DVLA, Swansea, SA99 1AR
How to cancel tax on a car - Final thoughts
Knowing how to cancel car tax before you begin will save you time (and hopefully) stress.
Bookmark this guide so you have it on hand when it’s time to secure your car tax return.
How Bumper can help
Tax isn’t the only expense car drivers need to pay. Costly repairs and emergency expenses can also add up. But it doesn't have to be a wallet-breaking affair.
With Bumper, you can split the cost of repairs into monthly payments at no extra fee.
Apply online for up to £5,000 and choose from 1,000s of trusted repairers.
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