Don’t forget you can reclaim your car tax after your vehicle is scrapped! After all, you pay tax and insurance to keep your vehicle on the road so it would be silly to keep paying it when your vehicle no longer exists. If you have sent your vehicle to be scrapped and you’ve pre-paid your tax, then you can reclaim your tax! You will be entitled to a refund of any funds still held by the DVLA….and let’s face it, everybody loves a refund!
The good news is, it’s actually pretty easy to do. Easy, I hear you say?….to get money back? Well, yes, it is. As long as you have followed procedure and scrapped your vehicle with a reputable company, it’s a piece of cake.
When you scrap your vehicle with a reputable dealer, you will get a Certificate of Destruction. This is a legal document to demonstrate that all legal procedures have been followed by both you and the scrap metal dealer. When you find a company to scrap your vehicle, make sure you ask about the CoD up-front.
When you are given your CoD, the DVLA are automatically notified and you will be refunded any tax that you are entitled to. Simple. If you are paying your tax by Direct Debit, they will cancel them. As a side note, it’s probably best not to stop Direct Debit payments before DVLA have officially recognised your vehicle as being scrapped, it could be more hassle than it’s worth.
Refunds are only applied to FULL months of tax remaining. You will not receive a refund for any outstanding days or weeks. That’s why it is important that DVLA are notified straight away to avoid missing out on any cash.
NEVER scrap your vehicle without receiving a CoD. If you have scrapped your vehicle and not yet received a CoD….make sure you are chasing it! It is legal proof that your vehicle has been destroyed and not sold. Without a CoD, your vehicle could still be registered to you and you could still be liable for any accidents or traffic fines etc.