After 93 years, car tax discs are to be scrapped. Vehicle excise duty is not being abolished, but the paper discs will be replaced by an electronic system.
When the new system starts, it will also be possible to pay by monthly direct debit. You will still be able to pay at the Post Office if you want to.
The changes are expected to come into force in October 2014.
Some commentators have suggested that the new system will lead to greater use of surveillance cameras. This remains to be seen.
In practice, most tax evaders are caught using police automatic number plate cameras. Statistics suggest that last year about 800,000 people were caught not paying.
According to a recent AA survey, 47% of respondents said they would be more likely to forget to renew car tax without a disc to remind them. This may lead to an increased number of prosecutions for untaxed vehicles.
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