Every year when your car tax renewal comes around, it is worth spending a few minutes checking everything is correct. A quick annual review can save you from unexpected charges, missed reminders or DVLA errors on your record. Here is what to check in your annual car tax review.
Check Your MOT Status
Without a valid MOT certificate, you cannot tax your vehicle. DVLA blocks road tax on vehicles with an expired or failed MOT. Check your MOT expiry date at least a month before your tax renewal. Book your MOT early to avoid a gap in cover. If your MOT has already expired, you cannot drive to the test — you need to arrange collection or recovery.
Verify Your V5C Details
Your V5C registration certificate contains the CO2 figure, fuel type and first registration date — all of which determine your VED rate. Errors on the V5C are common, especially on imported vehicles or those with previous owner mistakes. Compare what is printed on your V5C to what you know to be true about your vehicle. If there is a discrepancy, correct it with DVLA before renewing.
Confirm Your DVLA Address Is Current
DVLA sends tax reminders and any refunds to the address on your V5C. If you have moved, update your address online at GOV.UK before your renewal date. A wrong address means missed reminders and potentially a Vehicle First Notice to Owner (FPNO) if your tax lapses. Refunds also get lost if the address is wrong — and recovering them takes months.
Review Your VED Rate Is Still Correct
Your standard annual VED rate is based on fuel type: petrol and diesel cars pay £190 per year from year two onward, while zero-emission electric vehicles pay just £10 per year. If you have changed your vehicle's fuel type registration or if DVLA has recorded the wrong fuel type, your rate may be wrong. Check your last tax receipt or current tax status online against what you expect to pay.
Consider Paying Annually to Save
If you are currently paying monthly, consider switching to annual payment. Monthly car tax via Direct Debit costs more over the year because DVLA spreads the payment across 12 instalments with no discount. Annual payment at GOV.UK is the full VED amount — and it is the cheapest way to pay. You can switch at any renewal point.
Check for any VED Refunds Owed
If you sold your vehicle, declared a SORN or had your vehicle written off during the year, you may be owed a refund of unused road tax. DVLA should automatically refund unused months when a vehicle is sold and the keeper changes. Check your bank account after any ownership change. If you have not received an expected refund within six weeks, contact DVLA with your V5C reference.
Set a Calendar Reminder for Next Year
Once your annual review is complete, set a reminder for the same date next year. Building this into your routine means you never miss a renewal and always catch VED errors early. Use the free car tax calculator at Cartax.online to verify your expected annual VED cost each year.