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Car tax discs are to be scrapped in six weeks time but half of all UK drivers have no clue a survey claims.
The little circle of paper, which has been displayed in windscreens since 1921, will vanish from October 1 as Vehicle Excise Duty is brought into the modern age.
The changes were announced by Chancellor George Osborne late last year. But a survey from financial advice website money.co.uk claims 50 per cent of drivers have no idea it's going to happen.
Nearly a third of said they will not even try to find out what the new rules are, according to the poll, while six per cent think the changes are not coming into effect until next year.
Once the changes come into force, checks to see if drivers have paid their road tax will be done electronically using databases.
This comes after the number of visual checks by police and the DVLA dropped 75% since 2008.
It is estimated that motorists will be £20million a year better off thanks to the move, with businesses saving £7million in admin costs.
But drivers run the risk of fines of up to £1,000 if they don't get up to speed with the new rules.
Tax will no longer be automatically transferred with a car when it is sold, so sellers are expected to tell the DVLA immediately of the change of ownership or face fines.
Hannah Maundrell, editor in chief of money.co.uk, told the Telegraph: “Changes to the vehicle tax system are no bad thing and we fully welcome the introduction of direct debit payments, particularly for consumers who may be struggling to keep up with the soaring cost of driving.
“It will also help to eliminate the problem of people who genuinely forget to renew their tax and end up being stung with a hefty fine.
“However, I suspect the new system may experience some teething problems so drivers really need to make sure they're on top of their game.”
Some of the savings from going paperless will be passed on to motorists. The six-month road tax charge – a popular option – will fall from 10% to 5%.
Drivers will also be able to pay the tax by monthly direct debit for the first time. Fees vary according to engine size and Co2 emissions.
Getty British Chancellor of the Exchequer George Osborne walks to his car with the budget box outside 11 Downing Street
Tax Man: Chancellor of the Exchequer George Osborne announced the changes last year but half of all drivers still aren't aware
For example, a 12-month fee is currently £140 for engine sizes under 1549cc, or £77 for six months.
A Treasury spokesman previously said: “These changes mean it will be easier to tax your car, and cheaper than before to do it by instalment.”
Vehicle tax was introduced in 1888, when Queen Victoria was on the throne and the Marquess of Salisbury was Prime Minister.
The current system of excise duty followed in 1920 and the original tax disc was introduced the next year. It was plain grey paper printed with black ink and sometimes carried ads on the back.
The tax disc went colour in 1923 and perforations were introduced in 1938, making it easier to fit into a holder. The modern design, incorporating anti-forgery measures, came in 1961.
For help with the changes, go to the Driver & Vehicle Licensing Agency website.
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