Vehicle road tax

[Buckman]

For awhile our 1996 Corolla 1300 has been on DD for its road tax for sometime and this totals £178.44 over the year. I think that if you paid upfront it was either £160 or £165. We have now decided to pay the VED upfront and looked up the tax rates. It appears that despite COL increase, the government has seen fit to increase the tax rate on motor vehicles again this year. Is this correct?

12 months rate (non direct debit) £180.00

6 months rate (non direct debit) £99.00

12 monthly direct debit totalling £180.00

6 monthly direct debit totalling £94.50

Monthly direct debit totalling £189.00

Looking at the above I am wondering about the difference between paying monthly and paying 12 months by DD? It seems that if you pay 12 monthly it is the same price as if paying upfront. Also cheaper to do 6 monthly DD than to pay 6 months upfront? Normally it is the other way around?

 

[otherclive]

Yes rates changed.

 

[Buckman]

Yes rates changed.

Thanks never knew that and the DVSA never notified us of any changes. I was under the impression that if the DD changed, you are supposed to be notified?

The other possibility is that the DD runs annually so locked in to the old rate until March 2023 and only at that point they notify us of the change to the tax rate?

 

[Beachball]

We always done the 6 month direct debit for my wife car

 

[otherclive]

Thanks never knew that and the DVSA never notified us of any changes. I was under the impression that if the DD changed, you are supposed to be notified?

The other possibility is that the DD runs annually so locked in to the old rate until March 2023 and only at that point they notify us of the change to the tax rate?

You would only get notification of the applicable VED rate from DVLA relevant to a specific vehicle when you receive the renewal notification. Doesn’t the DD just end as the VED ends so you see the new VED rates when you renew.

 

[ProfJohnL]

One of the principles of the Direct Debut scheme is that it allows customers to set a payment system with a supplier where the cost of the goods or service supplied can vary in period or value. In other words its not just for fixed for ever payments.

Its up to your supplier (not the bank) to tell you if the level of payment is to change or deviate from a plan.

If you want fixed payments only to be made you need set up a standing order.

 

[Buckman]

We always done the 6 month direct debit for my wife car

Duh thanks just clicked about the 6 & 12 month DD. They debit the account once every 6 or 12 months. the other option is paying monthly. Think we will switch to paying them up front for annual pass rather than having it on a DD .

 

[otherclive]

This gives chapter and verse

Vehicle tax Direct Debit payments

Set up, change or cancel your car tax Direct Debit, swap to another payment method, and what to do if you miss a Direct Debit payment

www.gov.uk

 

[Hutch]

Bm, read the T& C. Paying anything by DD is always more expensive.

 

[otherclive]

Bm, read the T& C. Paying anything by DD is always more expensive.

Not according to BM's post above where a 12 month DD is the same as paying for a single 12 month renewal.

 

[figbat]

I pay all mine 12 months by DD - I wouldn’t do it if it added any cost. That said I got my renewal for the MINI this week - I still had to go through the ‘purchase’ process but for £0.

 

[Raywood]

I have always found the one off payment was cheapest and done that. The 12 month offer there looks too good to miss. Not sure what the practical difference between the third and fifth offers is though.

 

[Jcloughie]

Not according to BM's post above where a 12 month DD is the same as paying for a single 12 month renewal.

As I read it, 12 month dd is the same as paying for a single renewal (once per year), but automated. It is the monthly dd which is more costly.

John

 

[otherclive]

As I read it, 12 month dd is the same as paying for a single renewal (once per year), but automated. It is the monthly dd which is more costly.

John

Isn’t that what I have said? Apologies if I omitted to say that other options were more expensive but BMs post was self evident.

 

[Buckman]

Having reviewed the options, I think we will go for the initial 6 month payment and then in March pay the 12 month upfront and every March thereafter.

 

[Jcloughie]

Isn’t that what I have said? Apologies if I omitted to say that other options were more expensive but BMs post was self evident.

Apologese, I misread your post. 🥵

John

 

[Beachball]

Having reviewed the options, I think we will go for the initial 6 month payment and then in March pay the 12 month upfront and every March thereafter.

When it due again we are going to do the same one less direct debit and that a bonus to us

 

[DaveA1]

I always pay 12months it is cheaper. don't bother with DD