Road Tax Refund Calculator
Selling, scrapping or SORNing your car? Work out how much vehicle tax DVLA should refund — and how much one late day could cost you.
How does the road tax refund calculator work?
When you sell, scrap, export or SORN a vehicle, or move it to a tax-exempt class, DVLA cancels the tax and refunds each full month you have left. You don't claim it — the refund is automatic once DVLA has been told.
This calculator works out the amount from the date DVLA is told, the last month your tax covers, and your annual rate. Each full month is worth one twelfth of the base annual rate. GOV.UK says the refund is for full months left from the date DVLA gets your information but doesn't spell out how the month you tell DVLA in is treated, so this calculator assumes that month isn't counted. It also shows what a one-month delay would cost, because the timing of the notification often matters more than anything else.
3 worked examples
Example 1 — Selling a car mid-year
A car taxed at £200 a year, with tax running to the end of December 2026. You tell DVLA you've sold it on 15 June 2026.
June is the month you notify in, so it isn't counted. July to December is 6 full months.
Refund:£200 ÷ 12 × 6 = £100.00
Example 2 — One day makes a month's difference
The same car is sold on 30 June 2026. Compare telling DVLA the same day with telling them the next morning.
July to December = 6 months → £100.00
Told on 1 July:August to December = 5 months → £83.33
Cost of the one-day delay:£16.67 — a full month's worth of tax
Example 3 — Paying every six months
The same £200-a-year car, paid in six-month instalments. Your last payment of £110 (£100 plus the 10% surcharge) covered June to November 2026, and you tell DVLA on 10 September 2026.
October and November = 2 full months
Refund (surcharge excluded):£200 ÷ 12 × 2 = £33.33
Not £36.67:Dividing the £110 you actually paid by six months would include the surcharge, which DVLA doesn't refund.
Examples 1 and 2 show why you should tell DVLA the day the sale completes, particularly in the last days of a month.
What counts as a full month?
Refunds cover whole calendar months only. Your tax runs to the end of a month, and this calculator treats the month you tell DVLA in as used, even if you tell them on the 1st. That is a cautious assumption, because GOV.UK only says the refund covers full months left from the date DVLA gets your information. The refund then covers every complete month after it, up to the end of your tax.
| Tax runs to | DVLA told on | Months refunded |
|---|---|---|
| End of December | 15 March | April to December = 9 |
| End of December | 1 April | May to December = 8 |
| End of December | 2 December | None — December has already begun |
The date that counts is the date DVLA receives the information, not the date you sold the car. For a scrapped or written-off vehicle, that's when the scrapyard or your insurer tells DVLA.
What isn't refunded
- Part months — including the month you tell DVLA in.
- The 5% surcharge on monthly Direct Debit payments.
- The 10% surcharge on a single six-month payment.
- Credit card fees.
That's why the calculator asks for the base annual rate rather than what you paid: the refund is worked out from the base rate ÷ 12 whichever way you paid.
If it was the vehicle's first-ever tax payment
For the tax paid when a vehicle was first registered, the refund is based on whichever is lower: the first payment rate, or the rate for the second payment onwards. Tick the first-payment box in the calculator and enter both rates.
This can make a refund much smaller than expected. A new electric car taxed at £10 for its first year, with 5 full months left, gets about £4.17 back (£10 ÷ 12 × 5) — not the £83.33 that the £200 standard rate would suggest.
How you trigger the refund
You don't apply for a refund in most cases. Once DVLA has been told, it cancels the tax and refunds the full months left, usually by cheque to the name and address on the V5C. If you pay by Direct Debit, it's cancelled when you tell DVLA.
| Situation | What triggers it | Worth knowing |
|---|---|---|
| Sold or transferred | You tell DVLA | Tax doesn't transfer — the new keeper must tax the vehicle themselves |
| SORN | You declare SORN | The vehicle must stay off public roads |
| Scrapped | The scrapyard tells DVLA | The date DVLA receives it is the date counted |
| Written off | Your insurer tells DVLA | Timing is in their hands, not yours |
| Exported | You send DVLA the permanent export section of the V5C | The refund is worked out from the date DVLA gets it |
| Tax-exempt class | The tax class changes | See our Historic Vehicle Tax Exemption Checker |
| Stolen | You tell DVLA | GOV.UK says the refund cheque is sent automatically, unless you want to keep a personalised plate, which needs a separate application |
GOV.UK says you'll usually get a refund within 4 to 6 weeks, and to contact DVLA if the cheque hasn't arrived after 8 weeks.
What this calculator can't tell you
DVLA's exact figure
DVLA calculates the real refund from the date it receives your information. This tool is an estimate and takes the cautious reading that the month you notify in is never counted.
When DVLA is actually told
For scrapped or written-off vehicles, the scrapyard or insurer controls the date. For sales, it's the date you tell DVLA, which is why the date field says "not the date of the sale".
Direct Debit specifics
If you pay monthly, how many instalments have already been taken depends on your payment dates. For Direct Debit the result is the value of the unused months rather than a guaranteed cheque, and DVLA confirms anything due.
Stolen vehicles
GOV.UK's stolen-vehicle page says DVLA cancels the tax once you tell it you no longer own the vehicle, and a refund cheque for full months left is sent automatically. If the vehicle had a personalised registration you want to keep, you must apply for the refund separately, so check the GOV.UK steps.
Common mistakes
Expecting a refund for the current month
Only complete months after the month you notify DVLA are refunded. The month you sell in is gone, however early in it you tell them.
Expecting the surcharge back
The 5% Direct Debit and 10% six-month surcharges, and card fees, aren't refunded. Work from the base annual rate, not the amount you paid.
Assuming the buyer pays you back
Tax doesn't transfer to the new owner. The buyer taxes the vehicle themselves, and your refund comes from DVLA, not from them.
Telling DVLA late
Every month boundary you cross before telling DVLA costs a month's refund. Until it's told, you also remain the registered keeper on DVLA's records.
Forgetting the V5C address
The refund cheque goes to the name and address on the V5C. If you've moved, update it first.
Getting the most back
- Tell DVLA the day the sale completes. At the end of a month, a day's delay can cost a whole month's tax.
- Give DVLA the buyer's full name and address. GOV.UK warns that if your details are incorrect you may not get a refund for the full months left.
- Keep your confirmation. A record of when you told DVLA settles any dispute about dates.
- Check your V5C address so the cheque reaches you.
- Check your rate. If you're unsure what your annual rate is, our Road Tax Calculator will tell you.
🚗 Selling your car?
Our complete guide covers the V5C, telling DVLA, paperwork, and what else to do when you sell.
Read the Used Car Guide →How we calculate
Full months refunded = (last month your tax covers) − (month DVLA is told). Counted in whole calendar months, and never below zero. The month you notify in isn't counted.
Refund = base annual rate ÷ 12 × full months. The base rate excludes the 5% Direct Debit surcharge, the 10% six-month surcharge and card fees.
First tax payment: the base rate is the lower of the first-payment annual rate and the annual rate from the second payment onwards.
Cost of a delay = one month's value (base rate ÷ 12), shown when at least one full month would be refunded.
Frequently asked questions
Do I get a road tax refund when I sell my car?
Yes. When you tell DVLA you've sold the vehicle, it cancels the tax and refunds each full month you have left. You don't need to apply — it's automatic once DVLA has been told.
Does road tax transfer to the new owner?
No. Vehicle tax stopped transferring with the vehicle in 2014. The new keeper must tax it in their own name, and you get your refund from DVLA.
Do I get a refund for the current month?
No. Only complete months are refunded, counted from the date DVLA receives your information. The month you tell DVLA in isn't refunded.
How is a car tax refund calculated?
Divide the base annual rate by 12 and multiply by the number of full months left after the month you tell DVLA, up to the end of your tax. The surcharges on Direct Debit and six-month payments aren't included.
Do I get the surcharge back if I pay monthly or every six months?
No. The 5% surcharge on monthly Direct Debit payments, the 10% surcharge on a single six-month payment, and credit card fees aren't refunded.
How will I be paid?
DVLA usually sends the refund automatically as a cheque to the name and address on the V5C, so make sure that address is up to date.
How long does a road tax refund take?
GOV.UK says you'll usually get a refund within 4 to 6 weeks. If the cheque hasn't arrived after 8 weeks, contact DVLA.
References & data sources
- GOV.UK — Vehicle tax refund. Full-month refunds, the first-payment rule, and the surcharges that aren't refunded.
- GOV.UK — Selling a vehicle. Telling DVLA, the buyer's details, and the 4 to 6 week refund timescale.
- GOV.UK — Tell DVLA your vehicle has been written off.
- GOV.UK — Stolen vehicle: vehicle tax refund.
- GOV.UK — Taking a vehicle out of the UK. The permanent export section and refund date.
- GOV.UK — Make a SORN. Refund for full months and when a SORN starts.
- DVLA vehicle enquiry service (vehicleenquiry.service.gov.uk). Where to check your vehicle's tax status and expiry.
Refund rules are set and applied by DVLA and can change. This tool gives an estimate based on the figures you enter — always check the amount DVLA confirms.
Prakash
Prakash is the founder and editor of UK Driving Tools. He maintains the site's calculators and guides and checks the rates and rules they use against official UK sources, such as GOV.UK, the DVLA, HMRC and Transport for London, before publishing.
Pages are drafted with the help of AI tools and then checked by the editor. He isn't a lawyer, accountant or UK-qualified adviser, so every page lists its sources and states what its calculator can't tell you. Nothing on this site is legal or financial advice.
Pages on UK Driving Tools are drafted with the help of AI tools. Before publishing, the figures and rules on each page are checked against the official source named on the page, and calculator examples are tested against the working formula. Pages are updated when rates or rules change. Our Editorial Policy explains the full process, including how to report a mistake.
Spotted a mistake or an out-of-date rate? Let us know and we'll check it against the official source.