The basic process: what you need and where to send it

A car tax refund comes from DVLA (Driver and Vehicle Licensing Agency) when you've paid for a full year of tax but only used part of it. You get back the unused months as a credit to your original payment method — usually your bank account, though it can take four to six weeks to arrive.

The process itself is straightforward: you tell DVLA you're no longer using the vehicle, provide proof of the refund date you want, and they calculate what you're owed. You don't need to visit an office. Most people handle this by post or online through the DVLA website.

The amount you receive depends on when you stopped using the car. DVLA refunds in monthly blocks — if you stopped using it on the 15th of a month, you lose that entire month's tax. The refund covers only the complete months remaining on your tax disc.

Key Takeaways

  • DVLA refunds unused car tax in monthly blocks, so the exact date you stop using the vehicle determines how much you get back.
  • You must tell DVLA the vehicle is off the road before you can claim a refund, either through the online service or by post with form V888.
  • Refunds go back to the payment method you used originally — usually your bank account — and take four to six weeks to arrive.
  • If you've sold the car, the buyer may be responsible for the refund depending on when the sale happened and who paid the tax.
  • You cannot claim a refund for tax you've already paid if you don't notify DVLA before the tax expires.

Notifying DVLA that the vehicle is off the road

Before DVLA will process any refund, you must formally tell them the car is no longer in use. This is called SORN (Statutory Off-Road Notification). You can do this online through the DVLA website if you have your vehicle registration number and the reference number from your tax disc, or by post using form V888.

The online route is faster — you'll get confirmation when ready and DVLA will process it within days. The postal route takes longer; send form V888 to DVLA, Swansea, SA99 1BA. Either way, you must do this before your current tax expires if you want a refund on the unused portion.

When you notify DVLA, you tell them the date from which the car is off the road. This date determines your refund amount. If you say the 1st of the month, you keep that month's tax. If you say the 15th, you lose the entire month and the refund starts from the 1st of the next month.

What happens if you've sold the car

If you sold the vehicle, the refund situation depends on who paid the tax and when the sale happened. If you paid for a full year of tax and sold the car partway through, you're may have access to to a refund for the months you didn't own it — but only if you notify DVLA before the tax expires.

The buyer doesn't automatically get the refund. You must claim it yourself by notifying DVLA of the sale date. Provide the date you sold it and the buyer's name and address. DVLA will then refund you the unused portion, even though the car is now registered to someone else.

If the buyer paid the tax after taking ownership, they would be the one to claim any future refund. Make sure the sale is properly recorded at DVLA — the buyer should have applied for a new registration document in their name.

How much you'll receive and when

DVLA calculates refunds in monthly increments. The standard rate for 2024 is £165 for a full year of tax on a standard car, which works out to roughly £13.75 per month, though this varies by vehicle type and emissions. Your refund is the monthly rate multiplied by the number of complete months remaining.

The refund goes back to the original payment method. If you paid by debit card, it returns to that card's account. If you paid by cheque, DVLA sends a cheque to your address. Processing takes four to six weeks from the date DVLA receives your notification, though it's sometimes faster.

You can check the status of your refund by contacting DVLA directly. Have your vehicle registration number ready. They can tell you whether the refund has been processed and when it should reach your bank.

Situations where you won't get a refund

If your tax has already expired, you cannot claim a refund on the unused portion. DVLA only refunds tax that was paid in advance. Once the expiry date passes, the money is gone — there's no grace period or late claim option.

You also won't receive a refund if you don't formally notify DVLA that the vehicle is off the road. straightforward not using the car doesn't trigger a refund. You must take the step of submitting SORN or form V888.

If the vehicle has been scrapped or destroyed, you still need to notify DVLA with the date it was taken off the road. Provide whatever documentation you have — a scrappage certificate if available. DVLA will process the refund based on the date you report.

Refunds for vehicles with outstanding fines or penalties

If your vehicle has unpaid Congestion Charge, parking fines, or other traffic penalties, DVLA may hold your refund until those debts are settled. The refund doesn't go to you directly — it goes to the enforcement body first to cover what you owe.

Check whether your vehicle has any outstanding penalties before you submit your SORN notification. You can do this through the local council or enforcement agency responsible. If there are debts, settle them first or contact the agency to arrange a payment plan.

Once the debt is cleared, DVLA will release the refund. This can add several weeks to the process, so it's worth checking early.

Frequently Asked Questions

What if I made a mistake on the date I told DVLA the car was off the road?

Contact DVLA as soon as possible with the correct date. They can amend the notification if it hasn't been processed yet. If it has been processed, you may need to submit a new claim with the correct date, though DVLA can sometimes adjust the refund amount if the error was recent.

Can I get a refund if I'm selling the car next month?

Yes, but you must notify DVLA of the sale date before your current tax expires. Notify them now with the date you plan to sell, and DVLA will calculate the refund from that date. If the sale date changes, contact DVLA again with the new date.

Do I need to return my tax disc to get a refund?

No. When you notify DVLA through the online service, you don't send anything physical. If you use form V888, you don't need to include the disc — just the completed form. You can keep or destroy the disc yourself.

What if the refund doesn't arrive after six weeks?

Contact DVLA with your vehicle registration number and the date you submitted your notification. They can check whether the refund has been processed and investigate if it's been delayed. Refunds occasionally take longer if there are outstanding penalties or if your bank is slow to credit the payment.

Can someone else claim the refund on my behalf?

No. Only the person whose name is on the vehicle registration document can claim the refund. If you're selling the car and the buyer wants to claim a refund on their own tax, they must be the registered keeper and submit their own claim.