Hot off the press. The DVLA has just released the following:
‘From 1 October 2014, the paper tax disc will no longer need to be displayed on a vehicle windscreen.
You can apply online to tax your vehicle using your 16 digit reference number from your vehicle tax renewal reminder (V11) or 11 digit reference number from your log book (V5C)
To drive or keep a vehicle on the road you will still need to get vehicle tax and DVLA will still send you a renewal reminder when your vehicle tax is due to expire. This applies to all types of vehicles.
You can check the tax status of any vehicle online. This can also be used for rental vehicles.