bought a car, got v5 back, still showing as taxed

Pretty sure you need to SORN it or tax it as per the law, the previous owner will then automatically get a refund.

Once the V5C is processed by the DVLA the tax is automatically cancelled and the new keeper has to either tax or SORN it.

You would think they would. But they don't.

I had a write off, and sent off the log book as per the instructions. For a full year I was insuring the vehicle (because I'm curse word with money and hardly ever check bank statements), wasn't until I rang the DVLA to ask what was going on I got told they hadn't received the V5 thing from me. The car had been since brought back on to the road, and was taxed and being driven, and the DVLA allow the one vehicle to be taxed twice by two different people.

So be aware of that, the fact that someone else is taxing the vehicle doesn't cancel the tax you've put on it, and doesn't flag to the DVLA that the ownership has changed either. 

so around a month later from my opening post and with the car repaired and tested as much as i'd like, I thought I would sorn it until my current car is sold and then I can put this pug on road with the tax in my name, its obvious the last owner hasnt told them or cancelled a DD, and it hasnt been done automatically for some reason.

today, I get a refund payment cheque!

certainly strange.

its in my name, so I will have to put it in my bank!

I did, and I got the refund and not the LO.