How to claim back road tax when you scrap your car

Scrapping your car isn’t just about getting paid for the vehicle itself; you could be owed money back from the DVLA too.

This guide explains exactly how to claim back your remaining car tax (VED) when scrapping your vehicle. Whether your MOT has expired, you’re switching cars, or it’s too expensive to keep it on the road, here’s how to make sure you don’t miss out on what you’re owed.

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What happens to my road tax when I scrap my car?

When your car is scrapped, your tax doesn’t automatically stop. The DVLA will refund any full remaining months of road tax after you tell them that your car has been scrapped.

So, how does it work?

You notify the DVLA of your scrapped car.
They will cancel your vehicle tax.
You’l receive a refund cheque for any full months remaining.

How do I tell the DVLA that my car is scrapped?

Offline (fast)

Visit DVLA’s sold or transferred page.
Select ‘sold it for scrap’.
Enter your logbook details.
You’ll get confirmation instantly.

By post (slow)

Complete section 9 (V5C/3) of your logbook if it’s an old-style V5C
Or complete section 4 of the new red V5C
Send to: DVLA, Swansea, SA99 1BD

How long does a tax refund take?

Once processed, your refund usually arrives as a cheque within 4-6 weeks. It will be sent to the registered keeper’s address.

How much road tax will I get back?

You’ll only get a refund for the full months remaining on your tax.

For example:

If you scrap your car halfway through the month, you won’t get that partial month refunded.
The refunded amount depends on your vehicle’s tax band. You can check what tax band your car falls into in our VED tax rates guide.

Can I get a tax refund if my car was SORN?

No. If your car was declared SORN (off the road), you wouldn’t have been paying tax, so there’s nothing to refund.

Find out what a SORN vehicle is with our FAQs.

Or, how to SORN a vehicle with our guide.

Do I need to contact my insurance?

Yes you do. Don’t forget to cancel your insurance policy when you scrap your car. You may be entitled to a refund for any full months left, minus admin fees, depending on your insurer.

Final checks before scrapping your car

Remove any personal belongings.
Have your V5C logbook ready.
Notify the DVLA as soon as it’s collected.

Need help scrapping your car?

Scrap Local can help you every step of the way with free offers, free collections, guaranteed prices, and fast payments.

If you need help with anything such as notifying the DVLA, what do do with your tax and insurance, or questions about our processes, we’re here to help.

Visit our FAQ page, follow us on social media, or give us a call!

FAQs: Road tax refunds after scrapping your car

Here are the most common questions drivers ask about getting their car tax refunded after scrapping their vehicle. Learn how refunds work, how long they take, and what to check.

Martin Handley

Founder & MD of Scrap Local