The small tax disc mounted on windscreens is set to disappear from vehicles from October 1. Tax discs will also no longer be transferable between owners when it comes to selling a car.
This means that those selling a used car will be responsible for informing the DVLA when they sell their vehicle and will receive a refund for the remaining months of tax left. The new owner meanwhile, will have to arrange six or 12 months of car tax for the vehicle, or pay by Direct Debit.
However the absence of a brightly coloured disc on the windscreen may make it harder for buyers and sellers to remember to claim a refund or renew their tax. Owners will still need tax to drive, while the police will be able to use number plate recognition cameras to automatically spot tax evaders.
According to Phil Pearce, commercial operations director for vehicle information provider HPI: "We're hoping that the new DVLA initiatives will make it harder for drivers to head out on the road untaxed.
"It's easy to check if a vehicle is taxed by heading online at the Vehicle Enquiry Service, making this the first step for dealers and consumers alike who want to avoid the risk of fines."
HPI also warns car dealers to ensure they don't get caught out with fines for cars they no longer have on their forecourts. Dealers who fail to inform DVLA will still be liable for vehicle tax even if they no longer own the vehicle.