The National Traction Engine Trust

Tax Discs to be Axed After 93 Years

The tax disc to show motorists have paid vehicle excise duty is to be replaced with an electronic system.

The disc was introduced in 1921 but officials say it is no longer needed with the DVLA and police now relying on an electronic register.

The new system will allow people to pay the charge by monthly direct debit.

The Treasury said it showed government was moving "into the modern age".

It would also make "dealing with government more hassle free", a spokesman added.

At present, motorists are able to choose whether they pay VED in twelve or six month instalments.

The latter option costs 10% extra each year, but this is expected to be cut to 5%.

The new option of paying by monthly direct debit is also expected to cost 5% more than paying for a full year in one go.

The changes are expected to come into effect in October 2014.

Vehicle tax was introduced in the 1888 Budget and the system of excise duty applying specifically to motor vehicles was introduced with the Roads Act 1920, with the tax disc appearing the following year.

How this affects 'Historic Vehicle' status has yet to be made clear.

05 Dec 2013