As far as doovla are concerned wrap is temporary so need to inform, insurance not too sure but I reckon ask first to cover yourself.
Plod....hmmmm.....ANPR will throw a wobbly so they'll pull you anyway so you need to make sure you're FULLY legal on everything else, any excuse to get a result.
removing shouldn't be an issue if you use quality vinyl but allow time for cleaning, never 100% guaranteed all glue will come off and depending on existing paintwork if paint/lacquer will strip, plastics especially
DVLA changed the rules recently on this
"The DVLA have recently changed their recommendations for vehicles that have been wrapped, which now have to be registered if the colour has been changed. Previously because the wrap was not considered a permanent change, it did not need to be registered. However, the following statement has been issued by the DVLA;-
The register maintained by the Driver and Vehicle Licensing Agency (DVLA) essentially exists to assist in revenue collection, road safety and law enforcement. The Police and other enforcement agencies rely on the DVLA record for all vehicles-related investigations. It is therefore paramount that the information stored on the vehicle register is accurate and up to date.
DVLA records details given by vehicle manufacturers at first registration. Any changes to the vehicles details must be notified to DVLA by law.
By covering the entire vehicle in a coloured adhesive/vinyl wrap, it is DVLA’s view that the colour change should be recorded. To notify a change of colour you should complete section 7 of the registration certificate V5C and return it to DVLA Swansea SA99 1BA. You should receive a replacement certificate within two to four weeks.
We would advise that any owner of a vehicle that has had a full colour change wrap should now inform the DVLA immediately by completing and sending the necessary paperwork as specified."