Hi All,
Based on my own experience (currently ongoing) - I wanted to share some information with you all, because like me, I can imagine there are a lot of worriers out there.
Ok, so PIP standard entitles you to 50% off car tax, but PIP enhanced gets you free car tax - however, you must still send the documentation by post.
I received my 16 digit reference number to renew my car tax (due 1/11/23) on 5th October 2023. I sent my PIP forms and my half price payment by cheque, as I get PIP standard. I contacted the DVLA earlier this week to ask what was happening with my payment, as it still hadn't been cashed? I was informed that cheque processing times are between 3 and 4 weeks.
So, I replied back asking "what will happen if it's not processed by 31st Oct 2023, as I don't want my car taken away and crushed" - I have been told today that if it's not processed by the 31st October 2023, to ring them, pay the money I want too, but then advise them that I have PIP, and they will arrange a refund of the money that's due to me within 6 weeks, and basically not to contact them any further in relation to this matter due to how busy they are.
So, cut the long story short, anyone in the same boat - be prepared that your cheque sent in the post, may not be cashed in time, and you may be required to contact them by phone, on the last day of your cars current tax.
Regards, Chris.
Nothing on this board constitutes legal advice - always consult a professional about specific problems 
