6. Mr A purchased the ex-MOD vehicle on 31 August 2024. The car was manufactured in 2018 but was not registered with DVLA until 2024. Cars that are first registered with DVLA on or after 1 April 2020 are taxed on the basis of their CO2 emissions. In order for the car to be registered as diesel it would need to have evidence from the manufacturer to show that the emissions are low enough to qualify for licensing as a diesel car. This is by way of a Certificate of Conformity which shows the car was tested to the relevant standards.
7. When Mr A purchased the car, the dealer he bought it from made the application to DVLA for it to be reclassified and sent a cheque for £190 being the annual rate for car tax for a diesel car.
8. On 24 September 2024, DVLA received the paperwork. Mr A and the dealer made calls to DVLA in November to chase the progress of the application. On 11 November an enforcement letter was automatically sent to Mr A for unpaid tax. This was because though Mr A had paid the tax in August and September, he then cancelled the direct debit due to the dealer having sent payment in full to DVLA for the tax.
9. On 21 November 2024, Mr A made a complaint to DVLA. He raised his concerns about the issues with the tax and that this resulted in him receiving a penalty charge notice, technical issues he had in raising his complaint electronically, the delays in DVLA dealing with the reclassification application and outlined his understanding that once the car was classified correctly this would be backdated to when the car was registered with DVLA.
10. On 18 December 2024 DVLA responded to Mr A’s complaint. It said that it could not locate the paperwork the dealer had sent in September and said it is likely that it has gone astray whilst in transit between Royal Mail and DVLA. It said that when the vehicle was registered on 5 August 2024 no documentation was produced for it to be registered as a diesel car. It advised Mr A that it would need a Certificate of Conformity and provided contact details for the manufacturer in order to obtain this.
11. Mr A escalated his complaint the same day. He again outlined the issues with cancelling his direct debit for the vehicle tax and how this resulted in him receiving a penalty charge notice which DVLA had not addressed in its response. In view of the lost documentation, he requested a new V5 (logbook which records the registered owner of the vehicle) so that a further application for reclassification could be made. He outlined the impact this situation was having on him. He said that he has been inconvenienced, and it was causing him stress and anxiety, and he is having to avoid low emission zones when travelling to work which is causing increasing costs to him. He also said that without a V5, he could not transfer or sell the vehicle to remove the issue. He also said that he continues to pay a disproportionate amount for tax every month and again stated his understanding that once the car was reclassified this would be backdated.
12. On 16 January 2025 DVLA sent a letter to Mr A in response to the re-classification application. It advised that the vehicle was correctly registered and taxed in the PLG class this was because when it was registered with DVLA no CO2 emissions were provided and so it had to be taxed in the PLG class.
13. On 31 January 2025, DVLA provided its second response to Mr A’s complaint. It apologised for the delays and conflicting information he had been given. It explained that when the vehicle was first registered with DVLA it received no evidence of its CO2 emissions and so it was correctly taxed in the PLG tax class. It went on to explain that it did receive the application to change the tax class and that it had been incorrectly passed back and forth between two teams which resulted in a significant delay in it reaching the correct team. In addition it had not been scanned to its system which meant advisers were unable to trace it and this led to him being incorrectly informed that it had been lost in transit. It explained the situation with the payment of the tax and how this resulted in an enforcement letter being sent. It also said the enforcement case had been closed and he no longer had to pay the penalty charge. It went on to explain that it could not change the tax class of his vehicle and a replacement V5 was sent to him on 16 January and the cheque from the dealer for the vehicle tax had been banked and refunded to Mr A as the registered keeper. It again advised what was needed in relation to the CO2 emissions in order for it to consider reclassifying the tax class for the vehicle and provided contact details for the manufacturer. It said that it is evident he had not received the level of service it aims to provide and that there were significant delays in it considering the application being considered, and that as a result he was given conflicting information. It said the enforcement action was correct but apologised that this was not addressed in its previous response. It offered £150 in recognition of the poor service he had received. It also assured him that feedback had been provided of the teams concerned to address any training needs.
14. On 18 April Mr A escalated his complaint to the ICA. In its response issued in August 2025, in addition to the events already outlined, it noted on 5 February 2025 Mr A responded to DVLA’s complaint response. He believed reclassification would now be possible and suggested again that the outstanding tax issues would then be resolved and reclassification would be effective from the date of registration with DVLA. On 19 February DVLA responded and explained that any reclassification that might be made would not be backdated as PLG was correct when vehicle was registered. It sent a further letter on 25 March regarding the offered payment of £150 to which Mr A replied the same day advising that his dealer was in the process of the obtaining the Certificate of Conformity.
15. In its report the ICA were critical of DVLA’s handling of Mr A’s case and acknowledged it had accepted and apologised for the errors that occurred. Of particular concern was the application being passed between two teams for three months before being dealt with. It acknowledged that DVLA accepted than its first response did not address all the issues raised and there was a delay in providing its response. The ICA also identified that DVLA did not correct Mr A’s incorrect understanding that if the vehicle was reclassified, this would be backdated to when it was first registered, until 19 February. It said it was not incorrect for DVLA to provide information about how to possibly obtain a Certificate of Conformity, though said it was too definitive in its first response that this could be obtained from the manufacturer rather than it being a possibility. The ICA considered the level of consolatory payment offered to Mr A against our own financial remedy guidance. It said that DVLA had correctly assessed that the issues fit within level 2 of our guidance for severity of emotional harm and material inconvenience and it had offered a remedy within the range for level 2. However, it said the offer was too low considering the serious mishandling of the original application, how Mr A was misadvised over a period of several months. It said the substantive advice provided to Mr A about reclassification was not generally wrong but did provide a false optimistic picture of the prospects of reclassification. It said that it accepted that had there not been the confusion and delay in handling his case, Mr A could have made a decision earlier to return to vehicle to the dealer. It therefore recommended DVLA pay Mr A a further £150.
16. On 3 September 2025 DVLA wrote to Mr A again following receipt of the ICA’s report. It acknowledged the handling of his case was below the standard of service he should expect, and it offered its sincere apologies for this. It assured the feedback provided by the ICA had been taken onboard and will be used to improve its services. It also provided options for payment of the further £150.