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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. Here's how you can claim a vehicle tax refund.

Car Tax RefundsWhat is a car tax refund?

A car tax refund (sometimes known as road tax refund or vehicle 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 taxHow much road tax do I need to pay?

The amount of road tax you need to pay depends on your car and its emissions. You make an initial road tax payment when your car is first registered, which covers you for the first 12 months of driving. You’ll then pay every six to 12 months at a different rate.

The first time it’s registered you make a payment in line with your vehicle’s CO2 emissions:

CO2 emissions	Diesel cars (TC49) that meet the RDE2 standard and petrol cars (TC48)	All other diesel cars (TC49)	Alternative fuel cars (TC59)
0g/km	£0	£0	£0
1 to 50g/km	£10	£30	£0
51 to 75g/km	£30	£135	£20
76 to 90g/km	£135	£175	£125
91 to 100g/km	£175	£195	£165
101 to 110g/km	£195	£220	£185
111 to 130g/km	£220	£270	£210
131 to 150g/km	£270	£680	£260
151 to 170g/km	£680	£1,095	£670
171 to 190g/km	£1,095	£1,650	£1,085
191 to 225g/km	£1,650	£2,340	£1,640
226 to 255g/km	£2,340	£2,745	£2,330
Over 255g/km	£2,745	£2,745	£2,735

Your ongoing payments (every six to 12 months) work out as follows:

Fuel type	Single 12-month payment	Single 12-month payment by Direct Debit	Total of 12 monthly payments by Direct Debit	Single 6-month payment	Single 6-month payment by Direct Debit
Petrol or diesel	£190	£190	£199.5	104.5	£99.75
Electric	£0	N/A	N/A	£0	N/A
Alternative	£180	£180	£189	£99	£94.5

And if your car is worth over £40,000, you need to pay an extra £410 a year - although not if you drive an electric vehicle.

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’ve still paid up for after you no longer own the vehicle. For example, if you've got six and a half months left on your VED when you sell your car, you can claim back the six months left of road tax.

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.

Can I get a car tax refund if I'm registering a car as off-road?

Yes! No matter the reason for declaring your car as off the road you could still be able to claim tax back the tax you've paid for any full month you won't be using it. Again, you'll need to speak to the DVLA to get this done.

It all starts with a Statutory Off Road Notification (SORN). You can handle this bit of bookkeeping either online, over the phone of through the post. Either way, you should get an automatic refund of tax for the months the vehicle won’t be used. If not, you should kick up some noise at the DVLA until they sort it out. All being well, it usually takes about 6 weeks to get your mileage refund cheque through your door.

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.

Top vehicle tax refund tipsTips from RIFT Refunds

To make sure you get the maximum amount possible:

Do it as quickly as you can

You only get back the full months you’ve already paid for. Doing it immediately rather than waiting a few weeks could be the difference between securing an extra month’s refund or missing out. Plus, if you don’t let the DVLA know straight away, you could be liable for a fine.

Get to know the paperwork

The paperwork you need to complete depends on the reason you’ll no longer be driving the vehicle. It could be a SORN or a simple online update to the DVLA. If you’re scrapping your car at a recycling centre, you’ll need sign off from yourself and the centre to make it official.

Understand exactly how you do it

Can you do it online? Do you need to send documents in the post? It pays to know and understand the process, so you can get your claim in as early as possible and not open yourself up a fine.

And what about your next car? If you’re selling your car and buying a new one – and want to cut down on the potential road tax you’ll need to pay – it could make sense to go electric next time and benefit from the road tax breaks for electric vehicles. The rules are changing slightly in 2025, so it could be time to move now.

HMRC Tax RebatesClaim back overpaid tax with RIFT Tax Refunds

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DVLA Tax Refunds: Get your car tax refunded​