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Car tax and direct debit

specialboy
specialboy Posts: 1,436 Forumite
Just got my reminder notice and it is giving to option to pay by direct debit, just letting people know as I read on here that it wasn't set up for direct debits. It is actually cheaper to pay over 12 months than buyin 6months x 2.
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Comments

  • keith1950
    keith1950 Posts: 2,597 Forumite
    1,000 Posts Combo Breaker
    Even though the new rules started on 1st October , the direct debit option was only even going to be available for people needing to tax their car for a tax due to start on 1st November.
    Anybody wanting to tax their car from 1st October wasn't offered the option.
  • Hintza
    Hintza Posts: 19,420 Forumite
    10,000 Posts Combo Breaker
    It's still cheaper to buy 12 months.
  • harveybobbles
    harveybobbles Posts: 8,973 Forumite
    It's always been cheaper for 12 months.
  • marlot
    marlot Posts: 4,956 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    6 months always used to be 10% more. They're reduced it (and the DD option) to 5%.
  • roddydogs
    roddydogs Posts: 7,479 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Should be fun when lots of DDs start bouncing due to insufficient funds.
  • uknick
    uknick Posts: 1,742 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    marlot wrote: »
    6 months always used to be 10% more. They're reduced it (and the DD option) to 5%.


    Did you mean to type, 5% more using the DD option?

    2 x 6 monthly payments still cost 10% more than 12 months in one go.
  • Iceweasel
    Iceweasel Posts: 4,843 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    Here's a real-world set of figures that I have to choose from for re-newing next month.


    Vehicle tax rate for vehicle

    6 Month rate £71.50

    12 Month rate £130.00

    6 monthly by direct debit totalling £68.25

    12 monthly by direct debit totalling £130.00

    Monthly by direct debit totalling £136.50

    Monthly payment of approximately £11.38
  • molerat
    molerat Posts: 33,673 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 10 October 2014 at 11:09AM
    Iceweasel wrote: »
    Here's a real-world set of figures that I have to choose from for re-newing next month.


    Vehicle tax rate for vehicle

    6 Month rate £71.50

    12 Month rate £130.00

    6 monthly by direct debit totalling £68.25

    12 monthly by direct debit totalling £130.00

    Monthly by direct debit totalling £136.50

    Monthly payment of approximately £11.38
    So it costs more to buy 6 months tax by card or at a PO than it does to pay by a one off or monthly DD (unless they have not quite got the system right yet :o)
  • specialboy
    specialboy Posts: 1,436 Forumite
    That's what I was trying to point out, it's cheaper to spread the cost via direct debit than to pay up front.
  • bod1467
    bod1467 Posts: 15,214 Forumite
    edited 10 October 2014 at 2:22PM
    Except if you pay 12 months up front. :)

    Monthly by DD and 2x 6 monthly by DD are the same price. Most expensive is 2x 6 monthly at the PO.

    I guess they're trying to persuade people to pay be DD, as this gives them an element of control.
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