The tax disc to show motorists have paid vehicle excise duty is to be replaced with an electronic system, Chancellor George Osborne has announced in his Autumn Statement today (5 December 2013. The disc was
introduced in 1921 but officials say it is no longer needed with the DVLA and police now relying on an electronic register.
The new system will allow people to pay the charge by monthly direct debit albeit at a premium to paying in one lump sum.
The Treasury said it showed government was moving "into the modern age".
David Whale, Chairman of the Federation of British Historic Vehicle clubs, the organisation that lobbies on behalf of historic vehicle enthusiasts, welcomed the move. “DVLA have once again shown themselves to be an efficient and progressive organisation.” He said “ Their computer systems coupled with the increased use of number plate recognition systems have rendered the tax disc a costly and uneccesary irrelevance.”
It would also make "dealing with government more hassle free", a Government spokesman added. At present,
motorists are able to choose whether they pay VED in twelve or six month instalments. The latter option costs 10% extra each year, but this will be be cut to 5%. The new option of paying by monthly direct debit will also cost 5% more than paying for a full year in one go.
The changes will come into effect in October 2014.