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Scrapping a Car: What to Do About Tax, Insurance and Number Plates

By Axi Recovery October 29, 2026IconScrap & Non-Runners

When you scrap a car, take any private number plate off first, then tell DVLA once the car is at an authorised treatment facility. DVLA cancels your vehicle tax and sends a refund for any full months left. Your insurance is separate: you have to tell your insurer yourself.

Vehicle tax

You do not apply for a tax refund separately. Telling DVLA that the car has been scrapped cancels the tax, and DVLA sends a refund for any full months remaining. A Direct Debit is cancelled for you (GOV.UK).

  • The refund counts from the date DVLA receives your information, not from the day the car left you. Tell DVLA the same day.
  • The cheque goes to the name and address on the V5C logbook. If your address has changed, update it first.
  • If the cheque has not arrived after 8 weeks, contact DVLA.
  • Card fees and Direct Debit surcharges are not refunded.

Insurance

Scrapping the car does not cancel your insurance. Call your insurer, give them the date the car went, and ask whether you are owed money back for the unused cover. Check your policy for cancellation fees.

Do not cancel the insurance while the car is still parked on a public road. An untaxed or uninsured car needs a SORN, and if it has neither and no SORN you will be fined £80 automatically (GOV.UK).

Private number plates

If the car has a private registration, take it off before the car is scrapped, or it goes with the car (GOV.UK). You can put it on retention online, or by post with form V317. You will get a V778 retention document, and you must renew your right to the number every 10 years (GOV.UK).

The V5C logbook

Give the V5C to the scrapyard, but keep the yellow section (GOV.UK). If you do not tell DVLA the car has gone, you are still the registered keeper, and you can be fined £1,000.

Order to do it in

  1. Take the private plate off, if you have one.
  2. Book the scrapyard and the collection.
  3. Hand over the V5C at the scrapyard and keep the yellow section.
  4. Tell DVLA the same day.
  5. Tell your insurer.
  6. Cancel any parking permits, toll accounts or congestion charge auto-pay linked to the registration.

For the full process, see how to scrap a car in the UK.

Need the car collected?

AXI Recovery collects scrap and non-running cars across Essex, East London and Dartford. See scrap car removal, or call +44 7342 850180.

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