I bought a spares / repairs car more than 12 months ago, and notified DVLA of the acquisition, but as it was going into the trade (my first) I didn't complete the new keeper section, which was the correct action at the time.

The car was then fixed and I then wanted to test the car on the road so needed to tax it (no trade plates). I decided to use the direct debit approach on the basis that I hopefully wouldn't have it too long and wouldn't need to worry about laying cash out with refunds later.

I have now received a letter saying the car was being used while untaxed. Having spoken to DVLA this is apparently because the vehicle record has no keeper and so they don't send out a reminder letter, and they stop collecting the direct debit. DVLA opinion apparently is that if a car is "in trade" then it shouldn't be taxed, even though there are severe restrictions on trade plate use. The vehicle record certainly has a keeper for offences purposes.

I have taxed the vehicle to the earliest possible date but am still left with the "opportunity" to pay an out of court settlement of £88.

I feel this is particularly unfair especially as the Government website makes it clear that with car tax by direct debit renewal is automatic and I had no reminder (not that that really means anything).

https://www.gov.uk/vehicle-tax-direct-debit/setting-up

So, pay up and put it down to experience, or take some other route ?

Thanks for any help

The old system would not have allowed you to tax a vehicle that had no current RK. Same with new system.

IMHO, guilty as charged.

I am told that trade plates are much easier to get than once they were and no interview is now involved, the current fee is £165.

I have looked at getting trade plates, but the restrictions on use are fairly narrow and I came to the conclusion that it would be better to tax rather than run on trade plates and run foul of the permitted uses. (obvious one being putting test miles on a vehicle by using it for trips to / from work)

After some more reading around it seems that there is no concept of an "in trade" vehicle needing to be taxed ??

Correct. As long as it's not on the public highway.

As soon as a vehicle is declared "in trade" any existing tax is cancelled and a refund to the previous RK is generated, as per this email:

GOV.UK

This is an automated email - Please do not reply as emails received at this address cannot be responded to.

DVLA have been notified electronically that you have sold/transferred this vehicle into the motor trade and are no longer the keeper.

The application details are:

Vehicle registration number:
Transaction ID:
Application made on:

You should receive a postal acknowledgement letter within 4 weeks.

DVLA will automatically issue a refund for any full remaining months for vehicle tax and cancel any direct debits. The acknowledgement letter and refund will be sent to the address on the V5C log book, which was used.

For more information on driving and transport go to www.gov.uk/browse/driving.

You may wish to save or print this email confirmation for your records.

Yours sincerely
Rohan Gye
Vehicles Service Manager


The vehicle cannot then be taxed until it acquires a registered keeper.

Seems like a missing option from the system, and i'm sure I am not the first to face this.

So does this mean that the vehicle will remain in trade with and new RK, or does it transfer out of trade with another RK and increase in the number of keepers.

Looks like I have some paperwork to complete

Thanks both

The options are:

a) The vehicle stays in trade, is not used on the road (unless with a trade plate for designated purposes or to/from a pre-booked MoT test or associated repair), and is not taxed. The number of keepers does not increase.

b) A new registered keeper is notified to DVLA, the vehicle is taxed (after an MoT is obtained if required) and may be used freely on the road. The number of keepers has then increased.

+1