What Happens If You Forget to Tax Your Car

Missed your car tax? Here is what unfolds

For many drivers, car tax is out of sight until it suddenly is not. Since paper discs disappeared, the DVLA relies on automatic number plate recognition and a live database to spot untaxed vehicles. If you miss renewal, you will usually receive a Late Licensing Penalty letter through the post. It is a flat £80, which can drop to £40 if you pay quickly, typically within 14 to 33 days. Pay late or ignore it and the costs rise sharply, often involving debt collectors or a magistrates’ court hearing.

There is no grace period. Tax must be live from the first day of the month it is due. Backdating does not undo a missed deadline, and reminders are a courtesy rather than a shield from penalties. If you continue without taxing the vehicle, you risk more than a letter. The DVLA and police can clamp an untaxed car on the road. Expect a £100 release fee if paid within 24 hours, or your vehicle may be towed and stored at daily rates that compound the problem. Leave it unresolved and it could be auctioned, scrapped, or crushed.

Driving without tax carries separate penalties. In many cases you will be offered an Out of Court Settlement: £30 plus one and a half times the tax owed. Decline or default and the matter goes to court, where fines can reach £1,000 or five times the unpaid tax, whichever is higher. Declaring a vehicle off the road with a SORN is only protection if the car truly stays off public roads. Break that rule and fines can hit £2,500, with clamping likely.

From April 2025, electric cars join the same rules and rates for Vehicle Excise Duty. Miss it and the same LLP applies. Unpaid fines and judgements can harm your credit score and even block future renewals. The message is simple: act fast, pay less, and move on.

Quick action halves the first fine and prevents a cascade of extra costs.

Quick next steps

• Check your tax status online today

• Pay the LLP promptly to secure the discount

• Tax now or declare SORN if off the road

Who needs this guidance

If you are a UK vehicle keeper who has missed tax renewal, received a DVLA penalty letter, or found your car clamped, this guide is for you. It also helps new drivers, recent movers who may have missed a reminder after changing address, and anyone managing multiple vehicles for a household. EV owners should pay close attention ahead of 2025, when standard tax rules and penalties will apply. Even if you are not currently driving the vehicle, as the registered keeper you remain responsible for keeping tax valid or declaring SORN.

Your immediate choices

1. Pay the Late Licensing Penalty promptly to reduce it to £40.

2. Tax the vehicle online now using V5C or V11 details.

3. Set up a monthly Direct Debit to avoid future lapses.

4. Declare SORN immediately if the car is kept off public roads.

5. If clamped, pay the release fee within 24 hours to avoid towing.

6. If towed, settle recovery and storage promptly to stop daily charges.

7. Sold or scrapped the car? Update DVLA keeper details without delay.

8. If you suspect an error, contact DVLA with evidence to challenge.

Costs, consequences and likely outcomes

Below is a comparison of typical scenarios, costs, and impacts if you miss car tax in Great Britain.

Are you eligible for exceptions or relief?

Most drivers are not exempt from penalties once tax has lapsed. There is no formal grace period, and backdating does not erase liability. If your vehicle genuinely stays off public roads, a Statutory Off Road Notification is the lawful route to avoid keeper penalties, but it only applies from the date you declare it and requires the car to remain off the road. If you have sold, transferred, or scrapped the vehicle before the penalty date, you should promptly inform the DVLA with accurate keeper details to correct the record. Administrative errors can be challenged, but you will need supporting documentation, such as proof of sale or disposal.

If your car has been clamped or towed, acting within the stated timeframes keeps costs down and increases the chance of recovery. Drivers facing short-term affordability issues can consider monthly Direct Debit for tax to spread costs and reduce the risk of future lapses. As a UK-based retail finance broker, Kandoo cannot influence DVLA decisions, but we can help you explore regulated credit options for related, lawful motoring costs if appropriate. Always prioritise compliance first: get the vehicle taxed, declared SORN, or removed from the road.

Do this now - step by step

1. Check tax status online with your registration number.

2. Pay the LLP immediately to secure the discount.

3. Tax the vehicle or declare SORN the same day.

4. Set up Direct Debit to avoid future missed deadlines.

5. If clamped, pay release fee and confirm tax proof.

6. If towed, settle charges and recover before storage mounts.

7. Update DVLA if sold, scrapped, or keeper details changed.

Weighing it up

Before you act

Time is money here. The discount window on the Late Licensing Penalty is short, and clamping or towing costs escalate daily once storage begins. Confirm where the vehicle is kept and whether you intend to drive it. If it will remain off the road, declare SORN immediately and ensure it is not parked on a public highway. If you plan to drive, tax it today and consider monthly payments to reduce budgeting shocks. Keep all letters, receipts, and payment confirmations. If you believe the penalty is incorrect because you sold or scrapped the car, gather proof and notify the DVLA in writing and online. Above all, do not drive untaxed to “sort it later” as roadside detection is routine and penalties are steeper.

Alternatives to consider

1. Sell or transfer the vehicle and update DVLA immediately.

2. Dispose of the vehicle at an authorised treatment facility and file proof.

3. Move the car to private land and declare SORN while you decide.

4. Explore car-sharing, public transport, or short-term hire until taxed.

5. If finances are tight, adjust budget and switch to monthly tax payments.

Frequently asked questions

Q: I missed the renewal by a few days. Is there any grace period? A: No. Tax must be valid from the first day of the due month. Pay and renew immediately to minimise penalties.

Q: Can I backdate tax to avoid the fine? A: No. Backdating does not remove liability for the period untaxed. Settling promptly limits further action.

Q: My car is not driven. Do I still need tax? A: If it is kept off public roads, declare SORN. Without SORN, keeper penalties apply even if the car is not used.

Q: What happens if my untaxed car is clamped? A: Pay the release fee quickly or it may be towed. Storage fees accrue daily, and disposal can follow if unpaid.

Q: How do EV rules change in 2025? A: From April 2025, EVs pay standard Vehicle Excise Duty. Missing payment triggers the same penalties as any other car.

Q: Can unpaid fines affect my credit rating? A: Yes. Unpaid penalties and court judgements can appear on your credit file and may block future renewals.

Q: Will paying the LLP stop other penalties? A: Paying the LLP reduces that fine, but you must still tax the vehicle or declare SORN to prevent further action.

How Kandoo can help

Kandoo is a UK-based retail finance broker. While we cannot change DVLA penalties, we can help you explore regulated finance options for lawful motoring costs, from essential repairs to budgeting upgrades that help you keep your car compliant. Check eligibility online with no impact on your credit score.

Important information

This guide offers general information, not legal advice. DVLA rules and fees can change, and local enforcement may vary. Always verify your vehicle’s status with official government services and act promptly to remain compliant.