Drivers can save up to £2,475 a year by sending DVLA a simple letter

Motorists could pocket up to £2,745 a year by simply informing the DVLA if their car is off the road and untaxed, according to experts from LeaseCar.uk.

All drivers must alert the DVLA if they plan to keep their vehicle off the road and untaxed by completing the Statutory Off Road Notification or SORN. Once you've filled it out, you're no longer required to pay Vehicle Excise Duty - also known as road tax - which could save you a whopping £2,475 annually.

The process can be easily done online via the DVLA's website. Motorists only need to do a SORN once, and it will be automatically overturned if the vehicle is taxed again.

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Drivers will know a SORN has been successfully processed when they receive a letter from the DVLA within four weeks. The government assumes all cars are on UK roads unless they are SORN and therefore require them to be taxed.

A SORN is necessary to avoid penalties which can incur if a camera or the police spots the car on the road when it is not covered with road tax. And once the car has had a SORN application, it cannot be driven on the roads.

Penalties can be as high as £2,500 and penalty points. If you stop taxing your vehicle and fail to get a SORN, you can face fines of £80.

A SORN is also necessary if you are breaking a car for parts. If you snap up a car that's listed as SORN, remember to lodge a fresh SORN claim in your name.

Tim Alcock, from LeaseCar.uk, has cautioned: "Times are tough at the moment and a lot of people are making some difficult decisions when it comes to how to save money. Some are choosing not to run their cars and are opting for public transport instead. But many don't realise they could end up with a fine even if their car does not leave the drive."

"Unless they tell DVLA and obtain a SORN notification the authorities will see the vehicle as untaxed and therefore they could be fined. Receiving a penalty fine when you are actually trying to save cash would be a bitter pill to swallow so we want to make sure all motorists are fully informed of the legal requirements."

"And once you have an approved SORN application, the penalties for taking the car on the road untaxed are extensive. Make sure you abide by the law at all times."