Transferring the administration of vehicle registration and licensing services in Northern Ireland to the Driver and Vehicle Licensing Agency (DVLA) could save BVLRA members £1.5million a year.

Jay Parmar, legal and policy director at the BVRLA, said: “This is something we’ve long campaigned for, and is a step in the right direction.

“We estimate that allowing motorists to license their vehicles from anywhere in the UK will save BVRLA members £1.5million per year in administration costs alone.

“However, we would still like to see the MoT process harmonised so that all cars – no matter where they are registered – should have an MoT every three years.”

The changes will come into effect by the end of the year and will change the way businesses register and license vehicles used in Northern Ireland.

Motorists in Northern Ireland will be able to re-license a vehicle or make a Statutory Off Road Notification (SORN) 24 hours a day, seven days a week from home, work or abroad.

The DVLA’s fleet scheme will also be made available to fleet operators in Northern Ireland.

Vehicles registered in Northern Ireland currently need to have an MoT after four years, which is out of sync with the three year process of England, Wales and Scotland.

The BVRLA will continue to work with the government and its agencies to find a solution which benefits rental and leasing companies.