Road tax evasion increases to £217m

Friday, July 20, 2007

One in 20 cars untaxed
60% of offenders aren't pursued
Confidence in DVLA 'is dropping'

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One in 20 vehicles in the UK is untaxed, costing the Government £217 million, according to an investigation.

The National Audit Office (NAO) survey revealed that the number of vehicles without road tax rose from 3.6% to 5% between June 2005 and 2006, meaning an additional loss of £70 million in unpaid tax over the 12 months.

The NAO also warned that, as a result, the Driver and Vehicle Licensing Agency (DVLA) had little prospect of achieving its target of reducing tax evasion to 2.5% by December 2007.

Sir John Bourn, head of the NAO, cautioned: 'I was concerned last year that the significantly higher rates of VED evasion might undermine confidence in the DVLA's enforcement regime. My concern is even stronger this year.'

In addition, the NAO discovered that 60% of people who were issued Late Licensing Penalties for either avoiding road tax or late payment were not pursued through the courts or debt-collection agencies.

The survey included all taxable motor vehicles, although non-payment by motorbike owners was significantly higher than car users': the number of unregistered motorbikes rose from 30% to 37% in the same period.

The issue of non-payment of taxes has wider implications: police statistics suggest that three-quarters of persistently untaxed vehicles are involved in some other criminal activity.