Will I get a refund on my road tax (VED) after scrapping my car?

Yes — you’re entitled to a road tax refund when you scrap your car, but only after the DVLA is officially notified. Once the scrapping process is complete and the DVLA updates their records, they will automatically issue a pro-rata refund for any full months of unused Vehicle Excise Duty (VED). At blackburnscrapyard.co.uk, we help customers notify DVLA correctly so that refund processing begins without delay.

How Does the Tax Refund Work After Scrapping?

When your car is scrapped, the DVLA marks it as destroyed in their database. That change of status ends your legal responsibility for the vehicle — and also ends your road tax. You’ll receive a refund for the remaining full months of tax from the date DVLA receives notification. This refund is usually paid by cheque and posted to the address they have on file for the registered keeper. If you pay by Direct Debit, DVLA will stop taking payments automatically after the notification is processed.

You’ll get a refund for any full months of unused road tax.

DVLA calculates this from the date of scrapping notification — not the date you handed the car over.

Refunds are sent as cheques to the registered keeper’s address.

If you pay by Direct Debit, the DVLA will cancel future payments automatically.

How to Ensure You Get the Refund

Make sure the DVLA is notified properly. This can be done online at the GOV.UK site or by posting the yellow section of the V5C (logbook) to DVLA, Swansea. If you don’t tell them, the tax won’t be cancelled, and you could continue paying via Direct Debit. The refund won’t begin until the notification is received — so don’t delay it. Always keep a copy of your Certificate of Destruction and a note of the date you handed over the car to an ATF.

Step-by-Step: Getting Your VED Refund

Step 1: Scrap the car through a licensed ATF.

Step 2: Notify the DVLA using the yellow slip (V5C/3) or GOV.UK online service.

Step 3: DVLA processes the change and removes you as keeper.

Step 4: DVLA sends a cheque refund for full remaining months of tax.

Step 5: If paying by Direct Debit, no further payments are taken.

Things to Keep in Mind

DVLA only refunds whole unused months. So if you scrap your car on the 12th of the month, you won’t be refunded for the current month — only future full months are refunded. This catches a lot of people out. Make sure your address is up to date with the DVLA — the cheque will go to the address they have on file. If your car was jointly owned or the tax account was set up in a different name, the refund will go to the person listed on the V5C.

We Help You Trigger the Refund Properly

At blackburnscrapyard.co.uk, we make sure the DVLA is informed immediately after scrapping. We guide customers on how to send the yellow V5C slip or complete the online form — and confirm once the Certificate of Destruction is issued. Our goal is to ensure the scrapping process is clean, legal, and that you get every penny you’re owed.

We help you notify the DVLA when your vehicle is scrapped.

We explain how and when to expect your refund cheque.

We provide a Certificate of Destruction — proof for your records.

Our collection service ensures tax and insurance can be cancelled the same day.

Get in touch if you're unsure how to notify the DVLA — we’ll help make sure your refund is triggered correctly.

Useful Resources

Still waiting on a refund or unsure how it works? Contact our team and we’ll help you track it down.

Legal Context

DVLA’s policy is to refund vehicle tax when a vehicle is sold, transferred, scrapped, or SORNed. The law changed a few years ago to automatically end tax when keeper changes. So as soon as you notify scrapping, tax is canceled and refund triggered for full months remaining.

Why This Matters

Some people forget to ensure DVLA knows the date – if DVLA isn’t told, the tax keeps ticking away (or payments keep being taken). Also, expecting a refund for partial month leads to confusion (they won’t refund for the month in which it was scrapped).

Quick Step-by-Step Summary

  • Scrap car & notify DVLA (online or post)
  • DVLA updates record (you’re no longer keeper)
  • DVLA calculates full months left from date of notification
  • Cheque issued to your address (usually within 4-6 weeks)
  • If direct debit, ensure final payment was correct, then it stops.

Sources & References

  • GOV.UK scrap notification results
  • personal finance forums (people discussing refund timeframe)

Helpful External Links

  • GOV.UK – “What happens next” after telling DVLA
  • DVLA vehicle tax guidance