Getting your vehicle tax back after scrapping

How the refund is calculated

The DVLA refunds any full months of tax left after it receives your information. A part month is not refunded, which is why telling the DVLA on the day of collection, rather than a week later, can make a difference near the end of a month.

If the tax was the car’s first payment, made when it was registered, the refund is based on the lower of that amount or the standard rate that applies from the second payment onwards.

How it is paid

You do not need to apply. Once the DVLA has your notification, it sends a cheque to the name and address on the logbook. Make sure that address is current before you notify, because the cheque follows the logbook record.

• If you have not received a cheque after eight weeks, contact the DVLA.
• If a cheque is made out in the wrong name, return it to the DVLA with the correct details.

What is not refunded

Some charges are kept by the DVLA whatever happens:

• credit card fees
• the 5% surcharge on some Direct Debit payments
• the 10% surcharge on a single six-month payment

Direct Debit

If you pay monthly, the Direct Debit is cancelled automatically once the DVLA cancels the tax. You do not need to contact your bank, though it is sensible to check the next statement.

When a refund is due

Scrapping is one of several events that trigger a refund. The others include selling or transferring the car, declaring it off the road with a SORN, a write-off, exporting it, or registering it as exempt. A stolen car is the exception: you apply separately.