From Wednesday 1st October 2014, the paper tax disc is being abolished. They will no longer be issued or required to be displayed on a vehicles windscreen as proof of the vehicle tax being paid. You will still need to pay your vehicle tax, DVLA will just keep a digital record. If you have months left on you paper tax disc on 1st October, you can either remove the tax disc from your windscreen and keep displaying it until it expires.
When you sell your vehicle, you will no longer be able to transfer the tax to the new owner. The new owner will need to tax the vehicle before it can be used. The current owner will receive a refund for any full months left on the tax period, when DVLA is informed that he/she no longer requires vehicle tax.
For vehicle tax starting from 1st November, DVLA will offer motorists the option to spread the cost of their vehicle tax payment either monthly, six monthly or annually.