Car tax and direct debit

specialboy

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.

keith1950

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

It's still cheaper to buy 12 months.

harveybobbles

It's always been cheaper for 12 months.

marlot

6 months always used to be 10% more. They're reduced it (and the DD option) to 5%.

roddydogs

Should be fun when lots of DDs start bouncing due to insufficient funds.

uknick

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

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

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 )

specialboy

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

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.