With the introduction of the new electronic tax disc just days away, concerns have been raised over the possibility of tax disc evasion.

Some sections of the breakdown cover industry have suggested that with the scrapping of paper tax discs there could be a surge in drivers not paying their Vehicle Excise Duty tax. The number of drivers who have not paid VED could, say some, equate to as many motorists who drive without car insurance.

It has also been suggested that the cost savings of not having to print tax discs will be far lower than the losses incurred due to tax evasion.

However, the DVLA has refuted these claims.

The new electronic tax disc system will take effect on October 1 and will be enforced by number plate recognition cameras across the UK.

Tax can be purchased online or in a Post Office.

Those caught without tax will face a fine of £1,000.

The change has been undertaken in part to save UK companies thousands of pounds in administration costs, but the cost could be high for those who fail to prepare for the new system.

Buyers and sellers of used cars are particularly affected by the changes, which will mean that any remaining time left on a tax disc can no longer be transferred to the new owner; buyers must therefore buy a new tax disc straight away to avoid being fined.

By Craig Hindmarsh