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As you all know I sent an email back on the 18th of August to clarify some points, here is their reply only this afternoon!!! Hope it helps. You can comment on this using the forum. AT LAST SOME CLARIFICATION .................A LONG AWAITED REPLY TO MY E-MAIL HOPE THIS HELPS................. Jim, Apologies for the delay in replying. Please see response below. I have previously emailed you with questions as spokesman for a Car Dealer Forum called Twitter Car Dealers http://twittercardealers.ning.com/ , however as October the 1st is nearly upon us I would like to gain some clarification on some points that don’t seem to be noted anywhere on the DVLA website or in any previous e-mail correspondence. I would be very gratefully if you can e-mail clarification of these points below:- • • Can you please confirm that the process by traders will not change when it comes to taking back a part exchange vehicle in terms of paperwork, currently we would assist the car owner by filling in section 9 (the yellow slip) of the V5c with our details and getting the customer and ourselves to sign the appropriate parts and our details, so the car can be ‘transferred to trade’ or ‘in trade’, rumour has it that instead of this the customer would have to SORN the vehicle. Can you clarify please? I can confirm that this is correct – the process for disposal/disposal to trade will not change and should remain as is from 1st October. On receipt of the disposal notification an automatic refund of vehicle tax will be issued to the previous keeper on record/Direct Debit details automatically cancelled. If the registered keeper is disposing of the vehicle into trade then no SORN is required. From the 20th October the process of disposing vehicles into the trade will also become electronic and further communications will be issued by the project nearer to the time. A SORN should only be made by a keeper who is in possession of a vehicle. • If a customer decides to purchase his lease/contract hire vehicle that he or she has been running for the last two years at what point does it become the responsibility of the new owner to tax? This is not clear. As soon as the customer purchases a vehicle and decides to become the registered keeper on DVLA records they must tax it immediately. They do not need to wait for the Registration Certificate (V5C) to be in their name to tax – and they can tax online at www.gov.uk/vehicletax using the V5C/2 section of the V5C, over the telephone on 0300 123 4321or at a from Post Office® branch that deals with vehicle tax. o If we sell a car that has come back at the beginning of the month and changes hands is the car still road taxed until the end of that month as the previous owner will only get a road tax refund on the whole month’s left on the road tax paid. No – as soon as the keeper on record (seller) notifies DVLA that they no longer have the vehicle the road tax will expire. The new keeper must tax immediately before driving the vehicle on the road. o If a Car Dealer is sitting with car’s in stock that have, current and valid road taxes on them what happens on October 1st as these car’s will be ‘in trade’ and have no current owner, who does the road tax rebate go to? As car dealers we have most likely accounted for the value of this tax disc whilst valuing the car, so will we receive the rebate or the last owner or will this money just disappear into the Government coffers? Any vehicle that is currently in the motor trade with a valid tax disc will continue to be taxed until the vehicle is sold. At the point the vehicle is sold, the current tax will terminate. No refund will be paid where the vehicle is recorded as in the motor trade. For any refund to be issued, there must be a registered keeper held DVLA records. This has been the case since 2009. o As a car dealer who likes to deliver a first class service to our customers we often road tax our customers new purchases on their behalf can we continue to do this or have the customers to organise payment themselves and road taxing? Dealers can still continue to tax a vehicle on the customers behalf using the V5C/2 section of the V5C either online at www.gov.uk/vehicletax using the V5C/2 section of the V5C over the telephone on 0300 123 4321 or at a from Post Office® branch that deals with vehicle tax. o Can you also explain what happens if a customer drops off their car but have lost their V5C, does this mean that they can apply for a new V5C or not as technically they are no longer the owners if they have part exchanged the car, also does this mean because the road tax cannot be redeemed is the car technically still road taxed? When disposing of a vehicle the customer should hand over the V5C to the dealer. If this is not available they should telephone DVLA or apply on a V62 form (Application for a Registration Certificate) for a duplicate V5C before the sale. Alternatively, if the vehicle sale has already taken place, the customer may notify the sale to DVLA in writing. For further information visit www.gov.uk/vehicle-registration On receipt of the seller’s notification, the vehicle tax will end and an automatic refund/cancellation of DD details (if applicable) will be issued to the name and address details held on DVLA records (the seller). o Please clarify what happens with cherished transfers when customers are transferring their personal number to another car they have purchased, do both cars have to be on the MID at the same time, does the customer get a full rebate if he is collecting one on the first of the month and part exchanging the other on the same day? Are both cars road taxed and when does the customer expect to see the rebate? If a customer is transferring a personal number from one vehicle onto a new vehicle, both vehicles must be correctly insured/taxed/SORN declared before the transfer can be processed. On receipt of the disposal details for the previous vehicle an automatic refund of vehicle tax will be issued to the customer details held on DVLA records for any remaining full paid months. The automatic refund should be issued to the customer within 6 weeks. o Cars that are ‘transferred to trade’ or ‘in trade’ and sitting on car dealer forecourts do they have to be on the MID now, as they cannot be used on the road without a road tax disc, do we just make sure that our Tarde Plates are on the MID? The motor insurance that was in force for the previous keeper will have been cancelled at the time the vehicle was transferred to the motor trade, regardless of the vehicle tax status. Discussing the terms of motor trade insurance is a matter between you and your insurance company. Regards Rhian Powell Abolition of Tax Discs/Direct Debit Project ITD | A2 | DVLA | Swansea | SA6 7JL Twitter: @dvlagovuk Find out about DVLA's online services at: www.gov.uk/dvla/nomoretaxdisc