TV licence by Direct Debit

Pollycat

Hi
this is really just a warning for anyone who pays their TV licence by quarterly direct debit.

A friend of mine noticed that he's being charged £5 per year (£1.25 per quarter) for paying by this method.

The website states:
"You’ll pay for your TV Licence in four equal instalments which you pay every three months. Since the majority of the licence is paid for in arrears, your quarterly payments will include a premium of £1.25."

Monthly direct debit doesn't attract a premium as you make six payments before the new licence is due and six payments after.

Bellestar_2

Pollycat wrote: »

Monthly direct debit doesn't attract a premium as you make six payments before the new licence is due and six payments after.

Except that in the first year you have to pay for 18 months if you pay by monthly DD (assuming I am reading it right).

I don't get their argument that quarterly payers are paying in arrears... they pay at the start of the quarter for the quarter they are about to watch. Surely that is actually paying in advance?

I would switch to DD as it would be more convenient but I'm not handing over a penny more than I need to. So there TV Licensing! You will be sending me an SAE and receiving an annual cheque from me through the post until you make DD fair and we'll see who gets tired first.
:rotfl::rotfl:

Pollycat

You're right, Bellestar.

I guess if, when you first buy a licence and pay all of it in one go, you're paying in advance too.
So, the £142.50 you pay year-on-year is in advance.

The website seems to say that, when you first buy a licence and pay monthly you pay 6 months at around £23 per month which is pretty much a full year.
Then it drops to under £12 per month.
So you pay 6 instalments before the licence is due and 6 months after.
But at least you're not being charged over 3% for the 'privilege' of paying quarterly.

Sharon87

I remember this at uni. It was my best option though as I was only in halls for 3/4 of the year so I only made 3 payments. I could have paid in full and got a refund but I didn't want the hassle. I'm paying monthly now though - so I'm 6 months in advance right now.

JohalaReewi

You can also pay for the TV licence by credit card so if you have a cashback card, use that and get cashback.

Freddie_Snowbits

I pay bthe revulsive TV Tax at 11:55pm on 31st March, just before the yearly excalting increment, 3 months late.