Tax man out of pocket by £200m

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It is estimated that the amount of vehicle tax collected has fallen by £200m in the six months after getting rid of paper disks a report has shown.

Figures gained from the DVLA by the Financial Times show that between October 2014 and March 2015 £2.7bn had been collected in the six months after the online system came into effect. Which is 223m lower than the same period a year before.

The National Audit Office said “The change had likely caused an initial increase in non-payment”.

But it added that “overall non-compliance remains very low”.

A spokesman from the AA said “It’s not surprising payments have fallen and ironically the change was supposed to save money.

“It looks like it will work itself out but there are still many people who are not familiar with the new system.”

DVLA chief executive Oliver Morley said “Almost 99% of all vehicles on the road were taxed”.

“That’s around £6bn in vehicle tax passed to the Treasury every year,”

“We write to every registered vehicle keeper in the UK to remind them when their tax is due and we have introduced a range of measures to make vehicle tax easy to pay, such as direct debit or online.

“At the same time we are taking action against those who are determined to break the law.”

 

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