Car tax and direct debit

Marvel1

specialboy wrote: »

That's what I was trying to point out, it's cheaper to spread the cost via direct debit than to pay up front.

Are you sure? I put money away each month and pay up front for 12 months which doesn't have a 5% charage. Unless you mean pay up front for 6 months.

tony6403

But why does it have to be calendar months now that it's computerised.
We all can get insurance , gas bills , broadband , etc. starting and finishing on a single annual date.
The old system was understandable when you needed a tax disc on your windscreen but continuing on a calendar monthly basis is a complete rip off.

Hintza

tony6403 wrote: »

But why does it have to be calendar months now that it's computerised.
We all can get insurance , gas bills , broadband , etc. starting and finishing on a single annual date.
The old system was understandable when you needed a tax disc on your windscreen but continuing on a calendar monthly basis is a complete rip off.

And if they spread it over the month they would not need as much server capacity that is probably almost redundant bar the last week or so at the end of the month.

DD should also be at least the same price (if not cheaper) than buying annually.

roddydogs

12 mths DD is actually cheaper as you can "Invest" say £130 @ 1.5% interest, and that will get you about 90p extra.

JethroUK

roddydogs wrote: »

12 mths DD is actually cheaper as you can "Invest" say £130 @ 1.5% interest, and that will get you about 90p extra.

Or off-set it against your mortgage and save £gilliooooooonssss

terrencetrentderby

Strangely, when I followed the official DVLA twitter page link to the official DVLA page to Pay by Direct Debit for your car tax, I followed the on screen instructions and yet wasnt given the option to pay by direct debit. Anyone else tried? Have ended up paying 12 months up front just by following DVLA links. I didn't want to do that. I can't afford to do that. !!!!!!! Anyone else tried?

jimjames

specialboy wrote: »

That's what I was trying to point out, it's cheaper to spread the cost via direct debit than to pay up front.

Got my renewal in front of me.

6 mths is £79.78, 12 months is £145.

Pay by DD and the numbers are

6 months £76.13, 12 months £145 or monthly £152.25

So it is cheaper to buy 6 months tax by DD as one off payment rather than by card online or at post office.