Yes, You Can Get Your Car Tax Back
As soon as your vehicle is scrapped via a legitimate scrapyard, your road tax will be cancelled immediately. The DVLA calculates the number of months of tax you have remaining and returns you the money.
This is no different if you have paid for an entire year or are using a monthly direct debit method. In both cases, you are due money for the months you are not using. This is possibly one of the simplest things related to your car tax rebate that you simply do not consider because of the urgency of the scrapping process.
How the DVLA Refund Actually Works
The process is easier than you think. This is how it works.
As soon as the scrap yard informs the DVLA about the destruction of your car, your tax gets cancelled immediately on the same day.
The DVLA works out the refund based on a full calendar month remaining and not days.
This means that if you destroy your car on the third day of the month, the month doesn’t count towards your refund. You are only refunded for the full months after that month.
The refund is sent as a check to the address listed on the logbook unless you have previously arranged for a refund through the bank.
Your direct debit is also cancelled automatically so that you do not get billed again and again.
What You Need Before Scrapping Your Car
This is something that cannot be done by simply driving to a yard at your convenience. There are a couple of things that should be considered before doing this.
Use an Authorized Treatment Facility
Always ensure that you use an authorized treatment facility commonly known as the ATF. This is where your vehicle is legally destroyed, and the Certificate of Destruction is issued to you. You have to note that in the absence of this certificate, your vehicle will always exist on paper. It means that you won’t be refunded and you’ll always be liable for the next tax payments.
Ensure That You Still Have Your V5C Logbook
Your logbook is a form of identification which shows that the vehicle belongs to you. Once you scrap your vehicle, you have to notify DVLA through the yellow part of the V5C logbook. In case you don’t have this logbook, there is no cause for alarm because you can notify them online or in the post.
Verify Your Address Information
This can happen to the best of us. When the address on file with DVLA is no longer valid, the cheque will be sent to an incorrect address. It’s important to go onto the DVLA website and check that the address is correct.
How Long Does the Refund Take
The majority of people get their money back in four to six weeks. In some cases, it comes sooner depending on how things have been done and how quickly the scrapyard reports the scrapping process. After six weeks without any sign of payment, it would be a good idea to give DVLA a call.
What If You Scrap Through a Removal Service
The current trend is that not many individuals today tow the car by themselves to the yard. Instead, they prefer to go through the car scrapping removal service, whereby a company picks up the car for free, or even pays you a little amount of money for the scrap. None of this changes your rights to receive your tax rebate at all. So long as the company has worked with an ATF and has destroyed the vehicle in line with the rules, then your process remains the same. What counts is to ensure that the DVLA has been informed.
Final Thoughts
Getting a refund for the tax on your vehicle is not some magic which can only be done by some shady dealers – in fact, it is an opportunity that you simply overlook since selling the car seems to be the final step.
However, if you do everything correctly, namely work with a licensed company and notify DVLA accordingly, then you will receive the excess tax money easily. Brits Car Breakers is the one who does the job of selling the car right – that is how you make sure to receive your refund easily. If you have questions or need assistance, feel free to get in touch with our team today.
Frequently Asked Questions
Can I get a car tax refund after scrapping my car?
Yes. Once your vehicle is legally scrapped and the DVLA is notified, you’ll automatically receive a refund for any full months of unused vehicle tax.
How is a car tax refund calculated after scrapping?
The DVLA refunds only complete calendar months of unused road tax. Partial months are not included in the refund amount.
How long does a DVLA car tax refund take?
Most car tax refunds are processed within 4 to 6 weeks after the DVLA receives confirmation that your vehicle has been scrapped.
Do I need to apply for a car tax refund after scrapping?
No. In most cases, the DVLA automatically issues your refund once your authorised treatment facility (ATF) reports the vehicle as scrapped and your registration is cancelled.
What documents do I need to claim a car tax refund after scrapping?
You’ll usually need your V5C logbook details, ensure the DVLA has your correct address, and use a licensed Authorised Treatment Facility (ATF) that issues a Certificate of Destruction.
Can I get a car tax refund if I use a scrap car collection service?
Yes. As long as the collection company uses a licensed ATF and notifies the DVLA, you’re still entitled to a car tax refund for any unused full months of tax.