£167m - the cost of tax evasion now the tax disc has gone?

18 September 2014

tax disc Now that the tax disc for cars is being sent to the giant incinerator in the sky, people are getting a bit worried about the whole thing.

From October 1st, cars that have a tax disc in the window will either look a bit daft or they'll be the kind of people who get old motors and renovate them so they look all shiny and they can pretend they're living in the sixties.

The RAC aren't finding this funny though. They've been pacing around and nervously wringing their leather driving gloves.

They think that the lack of tax discs could lead to tax evasion which will cost the economy £167 million a year. They're worried that the number of drivers dodging tax could equal the number who try to avoid paying motor insurance. We'll let them explain.

An RAC spokesman said: "We could be looking at about £167m of lost revenues to the Treasury, far exceeding the £10m saved by no longer having to print tax discs and post them to vehicle owners. The big question has to be whether enforcement using only cameras and automatic number plate recognition will be sufficiently effective."

Currently just 0.6% of cars do not have road tax, which equates to something like £35 million in lost revenue from the 210,000 cars concerned. The RAC are worried that the same number of drivers won't have insurance either.

The DVLA aren't having it: "There is absolutely no basis to these figures and it is nonsense to suggest that getting rid of the tax disc will lead to an increase in vehicle tax evasion," said a spokesperson.

TOPICS:   Motoring

1 comment

  • Noghar
    'The big question' says the RAC. In other words they don't have a fecking clue and are just pulling figures out of their arses - or worse asking their even more clueless clientele for answers. All in the name of a bit of free publicity. The system for taxing and insurance has changed. It's now not the driver who is insured, but the car. If you have 'drive any car' insurance but the car you get into is not registered by the DVLA as insured, you will get nicked for driving without insurance. Why the feck doesn't the RAC publicise that instead of these bogus surveys?

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