How to Tax Your Car: A Step-by-Step Guide

The quickest way to tax a car is online at GOV.UK. You need a reference number from your tax reminder letter, your V5C log book or, if you have just bought the car, the green new keeper slip. It takes a few minutes and the car is taxed straight away.

What do you need to tax a car?

You need a reference number from one of these:

• a recent vehicle tax reminder or last chance warning letter from the DVLA

• your V5C log book, which must be in your name

• the green new keeper slip from the log book, if you have just bought the car

The car also needs a valid MOT if it is old enough to need one, and you must have insurance in place before you drive it.

How do you tax a car step by step?

1. Go to the tax your vehicle service on GOV.UK.

2. Enter the reference number from your reminder, log book or new keeper slip.

3. Check the vehicle details shown are correct.

4. Choose how to pay: card, or Direct Debit.

5. Keep the confirmation. There is no paper tax disc to display.

You can also tax by phone using the DVLA's 24-hour vehicle tax service, or in person at a Post Office that deals with vehicle tax.

Can you pay car tax monthly?

Yes. With Direct Debit you can pay monthly, every six months or once a year. Paying monthly or six-monthly carries a 5% surcharge. There is no surcharge if you pay yearly. Direct Debit cannot be set up over the phone.

What happens to car tax when you buy or sell a car?

Tax does not transfer with the car. If you buy a car, you must tax it in your own name before you drive it, using the new keeper slip. If you sell a car, tell the DVLA and you will automatically get a refund for any full months left. A Direct Debit is cancelled automatically.

Our guide to what you should leave with at handover lists the paperwork to expect when you collect a used car.

What if you are not using the car?

If the car is kept off the public road, for example in a garage or on a drive, you can make a SORN (Statutory Off Road Notification) instead of taxing it. You cannot drive or park a SORN car on a public road. You get a refund for any full months of tax left.

Common questions

How much will your car tax cost?

It depends on when the car was first registered and, for many cars, its CO2 emissions. Cars registered on or after 1 April 2017 currently pay a standard rate of £200 a year after the first year. Check the GOV.UK rate tables for your car.

Do electric cars need taxing?

Yes, and they now pay for it too. See our guide to road tax on electric cars.

How do you check a car is taxed?

Use the free GOV.UK check with the registration number. Our guide to checking if a car is taxed explains how.

Looking for your next car in Barnsley?

Browse our used cars or call the Sales team at anycolourcar.com on 01226 574410.

This guide is general information, not legal or financial advice. Updated October 2026.