From October 1, drivers are no longer be required to display the vehicle excise duty (VED) disc on their windscreens, bringing to a finish a regulation that was introduced in 1921.

Although this is the end for the disc, it is not the end for the duty which will still need to be paid. Motorists are being offered the choice of applying for VED renewal on line or by visiting a Post Office.

One key change from tomorrow is that those buying a vehicle will not be able to take advantage of the remaining months and days of the car’s existing VED and will need to renew the tax.

Those selling a vehicle will be able to claim a refund from the Driver and Vehicle Licensing Agency (DVLA) for unused months of road tax.

Those who have not paid their tax will be spotted on automatic number plate recognition cameras or by police checking VED data information.

Ian Gallagher, the Freight Transport Association (FTA) lead on driver licensing and vehicle registration said: “This is a fundamental shift in the way that the DVLA carries out its business, the removal of a paper disc which was introduced in 1921 is just a first step towards more and more services moving online.

“The FTA believes that the challenge for the agency moving forwards is to ensure that the systems it designs consider all user groups and particularly bulk business sector requirements.”

The FTA said that the Government had said that switching to digital tax discs will cost £8 million to set up but will save £2 million a year in administrative costs within three years.

Motorists who fail to comply with the new system could face a £1,000 fine.