Car tax (VED) explained: rates, checks and SORN

What car tax actually is

“Car tax”, “road tax” and “VED” all mean the same thing: Vehicle Excise Duty, a tax every vehicle used or kept on a public road must pay. It's administered by the DVLA, and enforcement is automatic: computer checks run against every registered vehicle, so there is no hiding an untaxed car.

You can see any vehicle's current tax status and expiry date instantly with our free car tax check.

How the rates work

For cars registered since April 2017, the system has two stages. The first-year rate (paid when the car is brand new) is based on CO2 emissions. The more the car emits, the more it costs. From the second year onwards, most cars pay a flat standard rate, with an additional “expensive car supplement” for several years if the car had a list price over £40,000 when new.

Older cars follow earlier rules: cars registered between March 2001 and March 2017 are banded by CO2 emissions for life (which is why some efficient diesels of that era pay little or nothing), and cars registered before March 2001 are taxed by engine size. Rates change at most Budgets, so always check the current figures on GOV.UK before budgeting for a purchase.

Tax doesn't transfer when you buy

Since October 2014, vehicle tax dies with the sale. The seller automatically gets a refund for any full months remaining, and the buyer must tax the car before driving it home. You can do it online in minutes using the reference number in the V5C new keeper slip. “It's taxed until March” from a seller is meaningless: the day the keeper changes, the vehicle is untaxed.

SORN: taking a vehicle off the road

A SORN (Statutory Off Road Notification) tells the DVLA the vehicle is kept off public roads, whether on a drive, in a garage or on private land. A SORNed vehicle pays no tax and needs no insurance, but it cannot be driven or parked on a public road at all, except directly to or from a pre-booked MOT test. A SORN also ends automatically when the vehicle is sold, so a buyer of a SORNed car must tax it before driving it.

When buying, a long period on SORN is worth asking about: the car may have been genuinely stored, or it may have been sitting because something expensive broke.

What happens if a vehicle is untaxed

• Keeping an untaxed vehicle without a SORN triggers an automatic fine from the DVLA.
• Driving an untaxed vehicle can bring a penalty of up to £1,000 plus the back-tax owed.
• Untaxed vehicles on public roads can be clamped or impounded, with release fees on top.

Because there is no grace period and no paper disc to remind you, the simplest habit is to check your renewal date now and set a reminder. Run a free check on your own reg to see exactly when your tax and MOT are due.