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DVLA Tax Refunds: Get your car tax refunded

Car tax, road tax, Vehicle Excise Duty (VED) – whatever you call it, no one loves paying it. The rules about VED are changing, along with the whole motor industry. We’re entering a new world of electric vehicles and hydrogen-powered engines, and the taxman’s having to adapt alongside it. For instance, the 2023 first-year rates for zero-emission cars were set at £0 to encourage drivers to switch to greener vehicles. The same goes for Alternative Fuel Vehicles (AFVs) that pump out under 50g of CO2 per kilometre. In 2025, though, the rules will be changing again, meaning many drivers of previously tax-exempt vehicles will start having to pay VED as well.

As always, where there’s tax to pay, there are ways of ending up paying too much. Maybe you’re getting off the road altogether, or perhaps just switching over to public transport. Does that mean you’ve lost the road tax you’ve already paid in advance? Probably not, because you can claim back anything you’re owed in a DVLA tax refund. Here’s what you need to know.

Car Tax RefundsWhat is a car tax refund?

A car tax refund (sometimes known as road tax refund) is money you get back on any vehicle excise duty that you've already paid.

Is the DVLA giving out tax refunds? Actually, yes – with the right paperwork. When you declare your car as sold, scrapped or out of use, you can claim back some of the VED road tax you’ve paid.

It makes no difference whether you’re selling your car on or scrapping it altogether. In fact, you could even get a DVLA tax refund if you’re simply taking your vehicle off the road for a while. Maybe you’re going to be out of the country for a few months, for instance. Either way, you’ll only claim back road tax for any complete months when you won’t be using the vehicle. For example, if you’ve still got 4 and a half months left on your VED when you sell your car, you’ll only get back 4 months’ worth of road tax.

You could be owed a VED tax refund if your vehicle’s been:

Sold or transferred to someone else: Be sure to tell the DVLA as soon as this has happened otherwise you could be fined. Once they know, they'll send you a DVLA tax refund by cheque within 8 weeks. If you use direct debit, it’ll be cancelled.
Scrapped, stolen or written off: If you’re scrapping your car, you'll need to use an authorised treatment facility (ATF) or a scrap or breakers yard. There's also some paperwork involved, which you can read about here. If you don't inform the DVLA, you could be looking at a £1,000 fine.
Taken off the road: You'll need to apply for a Statutory Off Road Notification (SORN). Once you've done this, you'll be sent a cheque for any remaining months of road tax that you've already paid for.
Exported out of the UK or registered exempt from VED: If you take your car abroad for more than 12 months you'll be owed a DVLA refund on your car tax, as it's considered a 'permanent export'. The DVLA will need to be notified and there's paperwork involved too. You can read more about it here.
Modified: Some alterations made to your vehicle can change the road tax you pay on it. In some cases, this can mean that you’re owed a DVLA tax refund. On the other hand, certain car modifications can actually increase the VED you pay. Either way, you need to keep the DVLA informed when you modify your vehicle, and claim back any tax you’re owed as a result.

Car Tax RefundDo I need to cancel road tax when I sell my car

When you’re getting rid of a car, you should definitely cancel your VED road tax. Otherwise, you’ll have paid for a car you’re no longer using.

You can claim a VED refund for any full months of road tax you’re still paid up for after you no longer own the vehicle. The paperwork involved depends on whether you’re selling it or scrapping it at a recycling centre. For example, you can use:

Section 9 of your V5C/3 certificate if you’re selling it on to a trader, dismantler or insurer. This section needs to be signed by both you and the vehicle’s new registered keeper, then you send it on to the DVLA.
A Certificate of Destruction from a recycling centre.

Claiming car tax refundsHow do I get a DVLA refund on my road tax?

So, how do you “untax” your car? The documents you need depend on how and why you’re no longer using the vehicle. If you’re just leaving it in a garage for a few months, for instance, you can use a Statutory Off Road Notification (SORN).

Your SORN can take effect either immediately or at the start of the following month. To cancel straight away, you use the 11-digit number on your log book (V5C). To cancel from the first day of the next month, use the 16-digit number from your V11 vehicle tax reminder letter.

Assuming the vehicle’s registered in your own name, you can sort your SORN out online. Otherwise, you’ll need to do it by post. If you pay your VED by Direct Debit, it’ll be cancelled automatically. Any tax you’re owed back will come by cheque.

If you’re selling or scrapping your car, or if it’s been written off or stolen, you’ll need different paperwork to get your DVLA tax refund. For instance, when you sell a vehicle or transfer it to a new owner, you need to get in touch with the DVLA as soon as possible to avoid a possible fine. All being well, once that’s sorted you’ll get your DVLA tax refund cheque in the post, and your direct debit will be cancelled if you’ve got one.

Visit the vehicle tax refund page of the government website for more on cancelling your vehicle tax and claiming a DVLA tax refund.

When will I get my car tax refund?How long does it take to get my DVLA tax refund?

Road tax refunds generally take up to 6 weeks to come through. If you’re still waiting for your VED to be refunded after 8 weeks, it’s time to contact the DVLA.

HMRC Tax RebatesClaim tax back with RIFT Tax Refunds

RIFT Tax Refunds are the UK's leading experts when it comes to claiming back overpaid tax from HMRC. We've claimed back over £354 million in tax rebates for over 160,000 people like you since 1999.

You can claim tax back on things like:

Travel to temporary workplaces
Accomodation costs
Uniform costs
Professional subscriptions, unions, or license fees
Training course expenses

Just answer our 4 quick questions and you're on your way. It's free to find out if you have a claim.

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