RAC Cars News


Schoolboy Profits From The DVLA Tax Disc Fiasco

By raccars Published

Image Source

Amid rising dissatisfaction with the way the DVLA has dealt with the abolishment of the paper tax disc , one schoolboy is making hay - and plenty of money - by starting up his own tax renewal reminder service. Thirteen year old Harvey Millington runs Tax Disc Reminder from Taunton in Somerset and has made himself £3,000 within eight weeks.

The entrepreneurial schoolboy claims not to have any plans for the money just yet, but with 400 orders in just one week, it looks like he'll need an accountant to help him out with that fairly soon. Harvey's company sends out jokily styled mock paper tax discs, to remind car owners that their VED is due for renewal. This comes after hundreds of people have been clamped as a result of having an untaxed vehicle since the change in rules introduced last year.

Like all the best ideas, Tax Disc Reminder is very simple. In October, Harvey noticed that there was no longer a tax disc in the windscreen of his father's car. When his father explained it was no longer necessary, Harvey wondered how people remembered to renew their tax without the reminder of the date on the windscreen, and felt he could help to solve this problem.

While the DVLA claims its new system makes adequate provision for reminding car owners of their taxation obligations, by March this year 6,000 car owners had failed to renew their VED and found themselves subject to fines of between £500 and £800 to release their car from a clamp. Harvey's father, Howard Millington, felt his son was on to something and advanced him a small business loan of £2,000 to set up Tax Disc Reminder, which Harvey used to create a website, design eight different reminder discs and advertise the service. The business has been registered as a limited company by Mr Millington due to age restrictions, but otherwise, Harvey has done all the work.

Customers enter their car registration and their address on the website and Harvey checks dates for them. He then sends them a paper tax disc chosen from eight different designs, including the Batman symbol, a smiley face and the Welsh dragon, to replace the old tax disc in their windscreen, with the renewal date printed upon it.

Initially, Harvey received about 50 orders per week, rising to 400 per week for the £4 service, on which he makes over 50% profit when doing the work himself. A fully automated system would set him back about £30,000, to which Harvey is working towards.

Looking to Buy?
Search for cars