After 93 years, car tax discs are to be replaced with an electronic system.
The disc, that shows that motorists have paid vehicle excise duty was first introduced in 1921, however the DVLA and police now use an electronic register, therefore officials say the disc is no longer needed.
Currently, motorists can choose whether they pay in six or twelve month installments, but with the new system you will be able to pay by monthly direct debit.
A spokesman said it will make “dealing with government more hassle free” and showed the government are moving “into the modern age”.
Chancellor George Goschen: “Apart from the Carriage Tax, which is a tax mainly on the more luxurious carriages – carriages, used for pleasure – there is at present no tax on any other vehicles, however much they may destroy the roads. We propose to put a duty of £1 a-year upon every vehicle exceeding 10 cwt. in weight, a very moderate limit to take. Members will acknowledge that the principle that all those who use the roads should pay for them, and should pay in some proportion to the wear and tear that they cause, is just. But I have not yet exhausted the subject. We propose, also, to put a very small Wheel Tax upon every vehicle.”
The changes, which will be announced by Chancellor George Osborne in his Autumn Statement, are expected to come into effect in October 2014.