The paper tax disc is no more

As of 1 October 2014 the Driver and Vehicle Licensing Agency (DVLA) will no longer be issuing paper tax discs for vehicles — more correctly know as Vehicle Excise Duty (VED) — and there is no requirement to display one. This includes drivers with a Northern Ireland address, but they will still need to display their MoT disc.
The DVLA will now put the numberplate recognition cameras to good use, which will be responsible for checking if the required tax has been paid.
So we still have to pay tax, but there’s no need for the paper proof.
Another significant change to the registration system is that when a vehicle is sold the remaining VED cannot now be transferred to the new owner. The vendor will be refunded the amount covering the remaining whole months and the buyer has to pay from the date of purchase.
The DVLA will continue to send vehicle owners a renewal reminder when the tax is due to expire and keepers will still process their payment in the same way; either electronically online or at a Post Office.
The other major change to the system is not happening until 1 November 2014. Then the period for which vehicle tax is paid for will change. At present it’s possible to buy either six months’ or a year’s tax up-front, but from 1 November it will be possible to pay by monthly direct debit over 12 months. As with the current six months’, however, there will be a premium added to the cost.
For more information please visit www.gov.uk/government/news/vehicle-tax-changes