Paper documents are now automatically cancelled when a vehicle changes hands

Thousands of motorists have been fined or had their cars towed away after falling foul of new rules following the switch to digital tax discs.

 Many are buying used cars unaware that the old paper documents are now automatically cancelled when a vehicle changes hands.

Ignorant that they must fork out for a new digital one – even if the existing paper disc is months from expiry – rising numbers of drivers are falling prey to clampers.

Critics allege that the DVLA has been operating a 'money-making scam' after figures yesterday showed clamping soared after the paperless system was introduced in October last year.

Many say the authority was too quick to penalise motorists without first warning that their car was not taxed. Drivers have faced bills of up to £800 to get their impounded vehicles back.

The DVLA was accused of 'heavy-handed and Draconian' behaviour yesterday after figures showed its use of clamping rocketed by 60 per cent from about 5,000 vehicles a month before the changes to 8,630 last month.

With no right to appeal against the fines to an independent body, drivers have little choice but to pay up. 

The DVLA is estimated to be making millions of pounds a year because it receives double road tax payment – from both the seller and the buyer.

A DVLA spokesman said: 'The changes have been widely publicised and we write to every vehicle keeper to remind them of the new rules before the vehicle tax expires.

'We also write to every new vehicle keeper when they buy a used vehicle to inform them that they must tax the vehicle before they use it. 

'In addition, if a driver does not tax their car we will send a warning letter to remind them to tax as they are at risk of enforcement action.' 

With no visible tax disc have people stopped bothering to pay?

The abolition of the tax disc October 2014 raised fears it would become easier for motorists to get away without paying Vehicle Excise Duty.

The  DVLA says that, despite some motoring organisations warning that the change could lead to a sharp rise in the number of untaxed vehicles, "the vast majority of drivers continue to tax their vehicles on time". A spokesman adds: "Since 1 October, more than 16-and-a-half million drivers have taxed their vehicles – with over 70% doing it online, more than ever before."

The DVLA is confident that the new system will not see more tax evasion. This is mainly because even before its abolition, the tax disc was not the chief means of ensuring VED had been paid.

The DVLA staff rely on its own database to see who has failed to tax their vehicles, with the keeper of an untaxed car sent a penalty notice in the post. Fines for failing to pay tax can be steep: there is a potential fixed-penalty notice fine of £50 and untaxed vehicles can be clamped, with a £100 release fee charged. A £160 surety also has to be paid before the vehicle is released, although this is refunded provided the vehicle is taxed within two weeks.

ANPR cameras are also used to catch offenders, says Ian Crowder at the AA. "There is the risk that the abolition of tax disc will encourage some people to believe these things won't be followed up," he adds. It would appear however that changes to the vehicle tax system that were introduced at the same time as the disc was phased out are catching some motorists out.

These changes meant that tax on a vehicle no longer carries over to a new owner as it did before October 2014 making it the responsibility of the buyer to pay tax immediately even if the vehicle is only part way through its current tax year. (the seller will automatically get a refund of any tax remaining when they sell it)

 "This simplifies the process of buying and selling used vehicles as now all new keepers must tax the vehicle before they use it rather than having to find out if it’s taxed or whether the seller has had the tax refunded."

New driving licence service

The DVLA is shortly due to stop issuing the paper counterpart to the photocard driving licence. As of the 8th June 2015 it will be no more.

If as a business or organisation you need to check someone’s driving record you can do so using Share Driving Licence.

There are 2 steps to this new service.

1. The driver licence holder will need to log on to the View Driving Licence service and click on Share Driving Licence. This will generate a unique one-time use access code that the driver will need to share with you, along with the last 8 digits of their driving licence number. Here the driving licence holder will also have the option to download a summary of their driving licence information and access code.
2. Once in receipt of the access code you may use this in conjunction with the last 8 digits of the driving licence number to view the latest driving licence information from the DVLA. This free, 24/7 service will be available at www.gov.uk.

Drivers with old style paper driving licences issued before 1998 can also use the Share Driving Licence service.

For more information on these changes and the abolition of the counterpart visit www.gov.uk/dvla/nomorecounterpart.