With a new electronic system being put in its place, the tax disc will cease to exist in paper form.
From October 1, Motorists will have to register their car online to pay their road tax.
They can do this via Direct Debit on the Driver and Vehicle Licensing Agency (DVLA) website or at a Post Office branch.
Drivers are being warned to learn about the new rules, which were announced in last year’s Autumn Statement, or face possible fines.
Number plate recognition cameras will track each vehicle on the road and those who do not register for the tax will be caught out by the cameras.
The change mainly affects those who are buying or selling a used car as vehicle tax will no longer be transferred with the car.
Unlike before, motorists who buy a used car will not benefit if there are months left on the tax disc.
As a result of this, buyers will have to renew their tax disc instantly, or risk being caught out on the road in an untaxed car.
As well as this, the seller of the vehicle is responsible for informing the DVLA of a change of ownership, otherwise they could face a possible £1,000 fine.
This can be done by filling out a V5C form and sending it to the DVLA.
It is important for all vehicle owners and motorists to find out whether their vehicle was taxed or SORN’d (declared off the road) before driving their new car.
Vehicle sellers will get an automatic refund for any full calendar months left on the vehicle tax.
The move aims to streamline services and has been claimed to save British businesses millions of pounds a year in administrative costs.