New data reveals that over 800,000 untaxed vehicles have been reported to the DVLA in the past year, as neighbours and local residents increasingly report motorists who flout road tax rules. The reports could lead to fines of up to £1,000 and vehicles being taken off the road.
Public reporting on the rise
Research from Tempcover, based on DVLA data, shows that the public submitted 806,952 online reports to the DVLA regarding untaxed vehicles over a 12-month period between May 2025 and May 2026. Nearly one in three people have checked on local vehicles, with 30% of respondents admitting to looking up a nearby car’s road tax status and 29% checking for a valid MOT.
Over one in ten (12%) have reported a nearby car for missing road tax, while 10% have reported a vehicle for lacking a valid MOT – offences that can carry heavy financial penalties.
Penalties and consequences
Claire Wills-McKissick, impound car insurance expert at Tempcover, explained the potential consequences: “Road tax and MOT regulations exist to ensure vehicles on public roads are legally compliant and roadworthy. If you are caught using an untaxed vehicle on a public road without a SORN then an out of court settlement letter will be issued. The fine is £30 plus one and a half times the outstanding vehicle tax.”
If the fine is not paid, the case may be followed through the magistrates’ court where the penalty is either £1,000 or five times the amount of tax chargeable, whichever is greater, according to the RAC.
Impound risks and insurance
Wills-McKissick added: “As public awareness and online lookup tools have grown, reporting non-compliant vehicles has become far easier. However, many drivers do not realise how rapidly an untaxed car can be seized and impounded. When a car is seized, many motorists are shocked to learn that standard annual insurance policies usually exclude impound release.”
Under regulations, compounds require proof of insurance valid for a minimum of 30 days that explicitly permits the release of a seized vehicle. Arranging specialist impound cover allows vehicle owners to meet official compound requirements, pay statutory release fees, and retrieve their vehicle before daily storage charges accumulate further.
