Dvla Tax Monthly By Direct Debit

[GLPoomobile 958]

Has anyone looked in to or is in fact paying for their "road tax" by direct debit spread over 12 months? Just wondered if they add on an extra charge/percentage/interest etc, or if it's just the full 1 year price split exactly by 12 payments. Can't find the answer on their website.

[Goliath 94]

It costs 5% more than the yearly fee to pay by DD. Likewise it's 5% more if you pay for 6 months (it used to be 10% extra for 6 months).

Edited January 20, 2015 by Goliath

[GLPoomobile 958]

I often end up paying for 6 months at a time anyway, so might as well just do the monthly payments then.

[chipstick 382 1 Cars]

I looked in to it a while back and was surprised to see it was cheaper by several pounds to buy 6 months as a single Direct Debit, than it was to pay for 6 months 'one off' using a card for example.

 

The catch is obviously after 5 1/2 months or so they will take another payment for a further 6 months - but if for whatever reason you don't want that to happen (perhaps because you want to sorn at end of summer use) - make the sorn and cancel the Direct Debit.

 

IIRC there's no saving to be made from doing a 12 monthly single DD over paying one off - unless you want to 'tax and forget' and have it automaticaly renewing every year without having to do anything.

[dobboy 231 2 Cars]

I've set mines up DD for a year a few weeks ago.

 

But i never got a reminder prior to my paper disc expiring.

 

Also have seen two cars recently scanning the roads for untaxed cars.

 

Wondered if it was a new money maker for them.

 

Don't tell you it's expired then catch you with the scanner.

[chipstick 382 1 Cars]

You should have got a letter Dobboy.

 

I had a letter in December saying tax on one of my vehicles was expiring on the 31st - 3 months after the transition, so I should imagine they will still send reminders.

[Stu 18]

I often end up paying for 6 months at a time anyway, so might as well just do the monthly payments then.

 

This is exactly why I've done mine this way this time around, especially when you consider the new tax rules.

 

Doesn't make a difference i know, but knowing that i haven't paid up front for 12 months rent feels good... Better in my account than theirs.

[Ramigojag 19 1 Cars]

I pay mine DD, i find it easier to just do and forget, and saves the big bill of having 3 cars all renewing tax around the same time.

[scbond 15 1 Cars]

As it stands at current prices:

 

Pay one-off online or in a Post Office:

6 months - £126.50

12 months - £230

 

Direct Debit:

6 months - £120.75

12 months - £230

Monthly - £241.50 split by 12 payments

Edited January 20, 2015 by scbond

[rallyeash 155]

I've set mines up DD for a year a few weeks ago.

 

But i never got a reminder prior to my paper disc expiring.

 

Also have seen two cars recently scanning the roads for untaxed cars.

 

Wondered if it was a new money maker for them.

 

Don't tell you it's expired then catch you with the scanner.

I'm not sure wether there is teething problems in the system but I've two vehicles in my business name and two personal cars.

Nothing for any of them.

[omega 82]

anybody know what happens if you scrap a car with the tax on DD?

[AlexRS2782 136 1 Cars]

If you believe the DVLA, whenever you sell / transfer ownership, SORN, export, or scrap, the DD is halted, once the DVLA are notified via receipt of the relevant part of the V5.

 

A couple of posters on other forums have however suggested also contacting your bank to ensure the DD is indeed cancelled rather than just trusting the DVLA to do so. Enough other companies fail to cancel DD's when agreed so it's possible the DVLA could also mess up.

 

If you paid in a lump sum for 1 year or 6 months tax, and there are any full months remaining then it should be refunded (via a cheque) when the V5 is received with the DVLA. There seems to be a discrepancy at the moment as some people have found they've been refunded based on the date of transfer / sale written on the V5 and others have been refunded based on when the V5 was physically received / processed.

[Rich_p 23]

I have just this week changed over to DD, for the extra £1 or so a month I thought why not and it saves having to do it in one big lump. (The BM is in a highish tax band)