Next week, the DVLA is scrapping the paper driving licence - but the RAC estimates that 55 per cent of people don't know the change is happening or what it means.

Here's our handy guide: What is happening?

From June 8 2015, the DVLA will no longer issue the green paper counterpart licence, and existing counterparts will no longer be valid.

The what?

The paper counterpart displays details not included on the photocard, including vehicle categories, endorsements or penalty points. From June 8, details of driving convictions will only held on the DVLA's digital records.

Why?

The changes - made as part of the government's Red Tape Challenge - are expected to save £8 million.

Justine Greening, transport secretary at the time the change was announced, said: "Motorists shouldn't have to keep numerous bits of paper – we live in a digital age."

Should I destroy my paper counterpart?

The DVLA recommends that drivers destroy their paper counterpart after June 8. However, the AA says it's better to keep hold of it, as you might be asked for it when travelling abroad or renting a car.

The British Vehicle Rental and Leasing Association (BVRLA) says: "Due to the short notice provided by the DVLA and the need to thoroughly test the new system, many car rental companies are still finalising their plans for the UK and abroad," it said.

What do drivers need to do?

You only have an old-style paper driving licence, don't destroy it. If and when you need to change any details, you will be issued with a new photocard free of charge. Otherwise, use the paper licence.

If you have a photocard, you must remember to renew it when necessary.

What if I want to rent a car?

Car rental companies will be able to view your details on the electronic database - see the video below:

Employers who need to check an employee's driving record will also be able to use the service.

How does that work?

To allow other people access to your record, you will need to log on to the 'share driving licence online' service, with your full licence number, your National Insurance number and your postcode.

This will generate a single-use access code that you can give the car hire company or your employer. The car hire firm enters the check code, along with several of the letters and digits from your licence number, in order to view your whole licence.

The access code is valid for 72 hours, and you can only apply for five in any 72 hour period. If you're not online, you will be able to call the DVLA and give permission for your driving record to be checked verbally.