Car Tax Refund Calculator UK
Use our free calculator to instantly estimate your Vehicle Excise Duty (VED) refund from the DVLA, whether you have sold your car, declared a SORN, scrapped it or had it written off.
Estimated DVLA Refund
Based on 6 complete months
How Does a Car Tax Refund Work?
When you sell, scrap, export or declare your vehicle off-road, the DVLA automatically cancels your road tax and issues a refund for any complete unused months remaining on your tax period.
The key word here is complete. The DVLA only refunds whole months, not partial ones. So if you notify the DVLA on the 2nd of a month or 28th, you will get same refund either way for that month. Timing your notification early in the month makes no difference to what you get back, but notifying late in a month means you lose that month entirely.
When Can You Claim a Car Tax Refund?
You are entitled to a VED refund in the following situations:
Car tax has not been transferable since October 2014 when the paper tax disc was abolished. When you sell a car, the buyer must tax it themselves before driving it, they cannot use your remaining tax.
Current UK Car Tax Rates (2026/27)
Your refund amount depends on the VED rate your vehicle was taxed at. Here are the updated rates from 1 April 2026:
Cars Registered After April 2017
Standard annual rate: £200 (up from £195 in 2025/26)
Expensive car supplement: £440 per year for five years (vehicles over £40k)
Electric vehicle supplement threshold: £50,000 from April 2026
Cars Registered March 2001 – March 2017
Rates are based on CO2 emissions and range from approximately £20 (Band A) to around £790 (Band M) annually.
Electric Vehicles (from April 2025)
First year (registered from April 2026): £10
Standard rate from year two: £200 per year
How to Notify the DVLA and Claim Your Refund
The good news is that you do not need to fill in a separate refund form. The refund is triggered automatically once the DVLA receives notification of your vehicle's change in status.
Step 1: Notify the DVLA
The quickest way is online via GOV.UK. You can also write to the DVLA in Swansea using your V5C logbook. Online notifications are processed significantly faster.
Step 2: Wait for Cheque
Refunds are sent by cheque to address recorded on your V5C. If you pay by Direct Debit, payments stop automatically once processed.
Step 3: Allow 6 Weeks
Most refunds arrive within 4 to 6 weeks. If you have not received anything after 8 weeks, contact the DVLA on 0300 790 6802.
What Your Refund Does Not Cover
Your VED refund will not include:
- 5% Direct Debit surcharge
- Credit card transaction fees
- The first partial tax month
- Late payment penalties
How We Calculate Your Refund
Our Car Tax Refund Calculator uses the following method to estimate your refund:
This matches the exact method the DVLA uses. The result is an estimate, your actual refund may vary slightly depending on how the DVLA processes your specific notification date.
Maximising Your Car Tax Refund
Notify early in the month. Notifying on the 31st versus the 1st of next month can cost you an entire month's refund.
Declare SORN immediately if storing your vehicle to stop paying VED and trigger a refund.
Notify on the same day you sell. Delays keep you liable for fines or owner penalties.
Update your V5C address before you notify. Cheques are sent only to the registered address.