You can get a road tax refund if you stop using your vehicle or it fails an MOT test, but the amount depends on how many months are left on your tax disc
A road tax refund comes from DVLA (Driver and Vehicle Licensing Agency) when you surrender your vehicle registration or when your car fails its MOT before the tax period ends. You do not get a refund simply because you want one — the vehicle must either be off the road permanently or have failed its test. The refund covers only the unused months of your tax disc, calculated from the month you surrender it or the month the MOT fails, not from the day you apply.
The process is straightforward but has a specific order: you must first notify DVLA that the vehicle is off the road (using form V5C/2 or through the online service), then request the refund. If your car failed its MOT, you report that separately. DVLA will calculate what you are owed based on the tax rate for your vehicle type and the months remaining.
Key Takeaways
- Road tax refunds are only issued when you surrender your vehicle or it fails an MOT test before the tax period ends.
- The refund amount covers only the unused months remaining on your tax disc, calculated from the month you notify DVLA, not from the date you apply.
- You must notify DVLA that your vehicle is off the road before requesting a refund, either by post using form V5C/2 or through the DVLA online service.
- Refunds typically arrive within four to six weeks of DVLA receiving your notification, paid to the bank account or address on your V5C registration document.
- If your car failed its MOT, you must report the failure to DVLA and provide evidence before a refund can be processed.
How to notify DVLA that your vehicle is off the road
Before you can request a refund, you must tell DVLA that your vehicle is no longer in use. You have two options: post or online. The online route is faster — you can do it through the DVLA website using your V5C registration document and a valid UK passport or driving licence. The system will ask you to confirm the vehicle is off the road and will give you a reference number immediately. This reference number is what you use if you need to follow up on your refund.
If you prefer to post, use form V5C/2 (Notification of Surrender of Registration Mark). You can download it from the DVLA website or request it by phone. Fill in your vehicle details, sign it, and send it to the address shown on the form. Include your V5C registration document if you have it. Post takes longer — DVLA typically receives it within five to seven working days, and you will not get a reference number until they process it.
Do not surrender your number plate unless you want to keep it permanently. If you are just taking the vehicle off the road temporarily, you can notify DVLA without surrendering the plate, and you can tax it again later. If you do surrender the plate, you cannot use that registration number again unless you pay to retain it.
What happens if your car failed its MOT
If your vehicle failed its MOT test before your tax disc expired, you can claim a refund for the unused months. You do not need to take any special action beyond notifying DVLA that the vehicle is off the road — DVLA will see the MOT failure on their system when you notify them. However, some garages or testing stations may ask for proof that you have reported the failure to DVLA, so keep your reference number from the notification.
The refund calculation is the same as for any other surrender: DVLA counts the months remaining from the month the MOT failed and refunds a proportion of your tax. If your MOT failed in March and your tax was due to expire in July, you would get a refund for April, May, June, and July — four months of unused tax.
How much refund you will receive
The refund amount depends on your vehicle type (car, motorcycle, van, lorry) and the tax rate you paid. DVLA calculates it by dividing your annual tax by 12 and multiplying by the number of complete months remaining. The calculation is done from the month you notify DVLA, not from the day you apply — so if you notify them on 15 March, the refund covers April onwards, not March.
For example, if you paid £165 for a year of car tax and you notify DVLA in March with eight months remaining, your refund would be approximately £110 (165 ÷ 12 × 8). The exact amount depends on the tax rate for your vehicle at the time you paid, which varies by engine size and emissions. DVLA will calculate the exact figure and tell you what you are owed before the refund is sent.
You cannot get a refund for a partial month. If you notify DVLA on 31 March, the refund starts from April. If you notify them on 1 April, the refund also starts from April. There is no daily calculation — only full months count.
How long the refund takes to arrive
Refunds typically arrive within four to six weeks of DVLA receiving your notification. If you notified them online, the clock starts from the date you submitted the form. If you posted form V5C/2, the clock starts from the date DVLA receives it at their office, which can take five to seven working days after you post it. You can track your notification status online if you have your reference number.
The refund is paid to the bank account or address shown on your V5C registration document. If your address or bank details have changed since you registered the vehicle, update them with DVLA before you notify them of the surrender. If the refund cannot be paid to the account on file, DVLA will send a cheque to your address instead, which adds another week or two.
If more than six weeks have passed and you have not received your refund, contact DVLA using your reference number. Have your V5C document and proof of posting (if you sent it by post) ready. DVLA can tell you whether the refund has been processed and, if it has, whether it is still in transit to your bank.
What to do if DVLA rejects your refund request
DVLA may reject a refund request if the vehicle is still showing as taxed and in use on their system, if the V5C document is missing or damaged, or if there is a dispute over who owns the vehicle. The most common reason is that someone else (a previous owner, a finance company, or a family member) still has the V5C registered to their name or address.
If your request is rejected, DVLA will send you a letter explaining why. If the issue is ownership, you may need to provide proof that you own the vehicle — a bill of sale, a finance agreement showing it is paid off, or a letter from the previous owner. If the V5C is damaged or lost, you can request a replacement from DVLA before resubmitting your refund request. If there is a finance agreement on the vehicle, the finance company must agree to the surrender before DVLA will process the refund.
Refunds for vehicles with outstanding fines or penalties
If your vehicle has unpaid parking fines, speeding fines, or other traffic penalties, DVLA may hold your refund until the debt is settled. This is rare but can happen if the fine is registered against your vehicle registration number. You will receive a letter from DVLA explaining the hold and telling you how to pay the fine or dispute it.
If you believe the fine is incorrect or was issued to the wrong vehicle, you can appeal it through the local council or the court that issued it. Provide DVLA with proof of the appeal, and they will release the refund once the matter is resolved. If the fine is correct, you will need to pay it before the refund is released.
Frequently Asked Questions
Can I get a refund if I sell my car to someone else?
No. Once you sell the vehicle, the new owner becomes responsible for the tax. If the tax is still valid, the new owner can use it. You cannot claim a refund for the remaining months. The only exception is if the sale falls through and you take the vehicle back — then you can notify DVLA and request a refund as if you were taking it off the road.
What if I already paid for next year's tax and then took the car off the road?
You can still get a refund for the unused months. Notify DVLA that the vehicle is off the road, and they will calculate the refund based on how many months remain in the current tax period. The refund covers only the current tax year, not future years you have already paid for.
Do I need to return my tax disc when I notify DVLA?
No. You do not need to return the physical tax disc. DVLA will cancel it on their system when you notify them. You can destroy it or keep it — it has no value once DVLA has processed your notification.
Can someone else claim the refund if they own the vehicle?
Only the person named on the V5C registration document can request the refund. If the vehicle is owned by someone else, they must be the one to notify DVLA and request the refund. If you are acting on their behalf, you will need a signed letter from them authorizing you to do so, along with a copy of their driving licence or passport.
What if I want to tax the vehicle again after I have surrendered it?
You can tax the vehicle again at any time, but you will need to notify DVLA first that you want to bring it back into use. You cannot use the same registration number if you surrendered it — you will need to apply for a new one. This process takes longer and costs more than simply renewing an existing tax, so only surrender if you are certain the vehicle will not be used.