Vehicle tax was introduced in the 1888 Budget and the VED applying specifically to motor vehicles was introduced with the Roads Act 1920. In 1921 the DVLA introduced the tax disk, but this is now to be scrapped as official say it is no longer needed as police now rely on an electronic register. The new system will allow people to pay the charge by monthly direct debit. As it stands, people can decide whether to pay the amount for a 6 month or 12 month period, with 6 months costing 10% extra per year – but this is now expected to be cut to 5%. The new monthly direct debit option is also expected to cost 5% more than paying for the year in one go. These changes are expected to come into effect in October 2014.

The government announced its intention to bring a direct debit system for paying VED in the 2012 Budget, seeking the views of motoring groups on the advantages of such a change. The DVLA received 160,000 reports from members of the public of potentially untaxed vehicles last year, and 200,000 drivers in all were spotted having not paid VED (Vehicle Excise Duty) last year. Through analysis of records, the DVLA also took action against 60,000 drivers whose noncompliance was revealed.  

After the paper disk is demolished, enforcing the digital system with entail a greater use of surveillance cameras. With this new system, more data will be logged and could potentially be sold on.

Abolishing the tax disk may not make too much of a difference for many people, but what do you think?