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In short
- Vehicle tax (VED) is refunded by the DVLA, not HMRC, when you sell, scrap, export or declare a vehicle off the road.
- The refund is automatic once the DVLA is told; you get a cheque for the full months remaining.
- It has nothing to do with an income tax rebate.
- If you drive your own car for work, the income tax side is the mileage claim.
When you get a vehicle tax refund
- You sell or transfer the car and tell the DVLA
- You SORN it (declare it off the road)
- It is scrapped, written off, stolen or exported
- You register it as exempt, for example disability
How much and how
Full remaining months from the date the DVLA receives the notification. Part months are not refunded. Direct debits are cancelled automatically. The cheque goes to the name and address on the V5C.
The income tax side
Using your own car for work travel is where HMRC comes in. 55p a mile from April 2026 (45p in earlier years) less anything your employer pays, back 4 years. That is a separate claim and usually worth far more than a few months of VED.
Questions
No cheque after 8 weeks.
Contact the DVLA. Check the address on the V5C was current.
Can I claim vehicle tax as a work expense?
Not separately for employees. The approved mileage rate (55p from April 2026, 45p before) is deemed to cover it.
This guide is general information, not advice about your circumstances. Figures use HMRC rates for the 2026 to 2027 tax year. We are a paid tax agent and not HMRC.
Am I owed a tax rebate? The PAYE guide
Work mileage tax rebate
Tax refund scams: spot a fake