Huge government tax disc loss

December 2015

Road tax | Motorcycle | Car | Revenue

£80million. That, we hear, is the loss to the British treasury as a result of road fund licence (tax disc) revenue evasion between 2014 and 2015. Following the scrapping of the ill-fated circular paper discs (October 2014), there should have been a £10million saving. That was the government prediction and the justification for the change.

However, in 2013 there were 210,000 vehicles using British roads without a valid tax disc. Two years on, that number has jumped by well over 100% to 560,000. Part of the problem is undoubtedly the fact that without a tax disc secured in a motorcycle licence holder or affixed to a windscreen, there's no instant visual reminder to renew. But equally, the lack of a visual paper disc gives licence (pun intended) to wilful evasion because modern detection relies upon ANPR (automatic number place recognition) cameras, traffic wardens, or a roadside check following a riding/driving infringement/incident. In other words, you can't simply glance at a vehicle to check its road fund licence status. It requires a digital check of some kind.

Certainly, in our neck of the woods there simply are no fixed ANPR cameras, very few traffic wardens, and almost no police presence on the roads.

Currently, there are around 32 million vehicles on British tarmac. Vehicles first manufactured before 1st January 1975 are registered as "historic" and are not liable for road tax. And that, take note, is now a "rolling" 40-year exemption. Next year the cut-off date will become 1st January 1976.

In 2013, road tax evasion "cost" the government £35million. The current £80million loss will certainly lead to a policy and practice re-think. But whether it leads to a full scale return to the paper road fund licence remains to be seen.

Better not throw-away those tax disc holders just yet, boys. And girls. Or did you already consign them to history?

— Sam 7