After an impounded car is released, the next step is making sure it’s legal to drive on public roads again. One common question is whether it can be taxed afterwards. Yes, a car can be taxed after being collected from the pound — but it must not be driven or even parked on a public road until the tax has been paid and the system updated. In most cases, the process is straightforward once insurance is active and the right documents are in hand.

What the law says

Every vehicle used or kept on a public road in the UK must be taxed and insured. The law doesn’t allow a grace period after release from impound, even for a short drive home. Driving an untaxed vehicle on the road, even for a few minutes, can result in an instant fine or another seizure. The only exception is when travelling directly to or from a pre-booked MOT test if the vehicle is insured and roadworthy.

When and how to tax the car

Tax can be renewed online through the DVLA once valid insurance is in place. The system checks the Motor Insurance Database (MID) automatically. As soon as payment is confirmed, the record usually updates instantly, although some transactions may take a few hours to appear on the database.

If you don’t have internet access at the pound, the tax can also be paid at a Post Office that deals with vehicle tax. You’ll need the V5C logbook or the impound release note showing your entitlement to the vehicle. Payment can be made by card, and a confirmation receipt is issued immediately.

Driving before tax is confirmed

Even if you’ve just paid online, do not drive until the transaction is complete and the tax status shows as active. ANPR cameras can detect untaxed vehicles within minutes, and the police or DVLA enforcement teams may still see it as untaxed if the record hasn’t refreshed yet. A short delay in leaving the pound is better than risking another impound fee.

If the car has no MOT

Tax can only be issued if a valid MOT is recorded, unless the car is being taken to a pre-booked MOT appointment. If the car failed its test or hasn’t been tested recently, book an MOT first, then tax it immediately after the new certificate is uploaded to the DVLA database. The MOT result usually updates within hours.

Can someone else tax the car?

Yes. Anyone with the correct details — usually the V5C reference number — can pay the tax, provided the vehicle has active insurance. This is sometimes useful if the keeper cannot attend in person. Once the record shows as taxed, anyone with valid insurance to drive that car can use it on public roads.

What to avoid

• Driving home without paying the tax first, even if it’s “just a few miles”.
• Assuming a pending payment or online confirmation screen means the car is already legal.
• Leaving the car on a public street while waiting for tax confirmation — it must be kept off-road or on private land until taxed.

Final word

You can tax a vehicle immediately after collecting it from an impound, either online or at a Post Office, as long as insurance and MOT records are valid. Until the record shows as taxed, keep the car off the road. Taking ten extra minutes to complete the process properly saves the risk of another fine or seizure before you’ve even driven home.

Check here for more useful information about impounded cars!

Please note: impound rules, collection windows and fee structures are set locally and can change at any time. Details on this site offer a broad outline only and are not guaranteed to match the requirements of any individual pound or authority.