Can I Get a Refund on Road Tax After Scrapping My Car?

10th Apr, 2025

Scrapping your car doesn’t just free up space—it can also put some money back in your pocket. One of the key financial benefits is the ability to claim a DVLA refund road tax. Many car owners don’t realise that they may be entitled to a road tax refund after their vehicle is scrapped. Here’s everything you need to know about claiming back your unused road tax.

How Road Tax Works in the UK

In the UK, road tax—officially known as Vehicle Excise Duty (VED)—is paid in advance either monthly, biannually, or annually. Since tax is no longer transferable when selling or scrapping a vehicle, any remaining balance can be refunded by the DVLA once the car is declared as scrapped.

How to Claim a DVLA Refund Road Tax

Once you’ve scrapped your car through an Authorised Treatment Facility (ATF), the DVLA should be notified so they can process your refund. Here’s a step-by-step guide to getting your money back:

1. Notify the DVLA That Your Car Has Been Scrapped

The first and most important step is informing the DVLA that your car is no longer in use. This can be done online via the DVLA website or by sending the relevant section of your V5C logbook by post.

For a full guide on how to notify the DVLA, check out how to tell the DVLA when you sell or scrap your car.

2. Wait for Automatic Refund Processing

Once the DVLA receives confirmation that your car has been scrapped, they will automatically process your road tax refund. You don’t need to make a separate application. The refund is calculated from the beginning of the next month and is issued for any full months of unused tax remaining.

3. Receive Your Refund

Refunds are typically issued via cheque and sent to the registered keeper’s address on file. The DVLA does not provide refunds through bank transfers or direct debits, so make sure your details are up to date to avoid any delays.

How Much Road Tax Refund Will You Get?

The amount refunded depends on how much prepaid tax remains. The DVLA refund road tax is calculated in full months, meaning if you scrap your car halfway through a month, you won’t receive a refund for that month.

For example:

• If you pay road tax annually in January and scrap your car in June, you will receive a refund for July to December.
• If you pay monthly, no refund is issued—you simply stop future payments.

What Happens If You Paid by Direct Debit?

If you pay for road tax through direct debit, you won’t receive a refund because your payments stop automatically once the DVLA processes the notification that your car has been scrapped. You won’t need to take further action beyond cancelling the direct debit if necessary.

Can You Get a Refund on Other Charges?

While road tax refunds are straightforward, you may also be eligible for refunds on other car-related expenses:

• Unused insurance premiums – Contact your insurer to cancel your policy and request a pro-rata refund.
• MOT – No direct refunds, but if your car had a long MOT left, it may increase the value when scrapping.

Scrap Your Car the Right Way

Ensuring your car is scrapped legally and correctly is essential to securing your DVLA refund road tax. At Scrap Car Network, we connect you with licensed ATFs, ensuring that you receive all the necessary paperwork for your refund and that your vehicle is disposed of in an environmentally friendly manner.

Final Thoughts

If you’ve recently scrapped your car, don’t forget to claim your road tax refund. The process is simple—just notify the DVLA, and they’ll handle the rest. By ensuring you follow the correct procedure, you can recover your unused road tax and put that extra cash to good use.

Ready to scrap your car? Get started today with Scrap Car Network and make the most out of the process!