That's right. Worse case scenario.
As of 1st Oct even if you have a disc in the car you can throw it away. DVLA will get loads of extra cash and there will be a huge amount more tax dodging and fraud going on. There is no visual way of seeing if a car is taxed.
Not a wise move IMHOthe system is a bit odd.
I've just bought a cheap runabout which has a tax disc that shows it runs until the end of Nov 2014.
Now, I was aware of the change and have been on the DVLA tax check, which shows that my car IS taxed.
I'm guessing it will change when the last owner sends the V5C in, but in the meantime I check it every morning and keep driving