Support my e-petition on car tax direct debit

danlightbulb

http://epetitions.direct.gov.uk/petitions/71202

I have created this e-petition because I think it unfair that paying VED by direct debit should attract a 5% surcharge.

I would appreciate signatories of anyone who agrees.

Also if anyone knows how I can increase visibility of this petition that would be appreciated.

Best Regards
Dan

sheramber

But the present surcharge for bi annual payments is 10% so it is a reduction from 10% to 5% for direct debit patments.

At present, paying VED bi-annually attracts a surcharge of 10 per cent. Biannual and
monthly payments made by direct debit will attract a lower 5 per cent surcharge.

danlightbulb

sheramber wrote: »

But the present surcharge for bi annual payments is 10% so it is a reduction from 10% to 5% for direct debit patments.

At present, paying VED bi-annually attracts a surcharge of 10 per cent. Biannual and
monthly payments made by direct debit will attract a lower 5 per cent surcharge.

I know. The 10% was a joke, and I believe the 5% is still a joke.

Most utilities offer discounts for paying by DD not charge extra.

Why should you have to pay extra for trying to budget your monthly outgoings and pay by a very efficient mechanism?

zenmaster

Basically, you are asking for interest free credit.

Just pay the bill, in full, when it's due (0%) and you are home and dry.

TheCyclingProgrammer

VED is an annual or bi-annual liability so as the poster above says, paying by DD is essentially being given credit. That's not to say I don't agree with OP though.

What is more ridiculous is that the move to direct debit wasn't used to shift to calculating tax on a daily basis or a monthly basis from point of purchase, rather than still basing it on calendar months, meaning no partial month refunds. Possibly something to do with the DVLA getting an extra month of tax every time somebody sells a car.

System

TheCyclingProgrammer wrote: »

VED is an annual or bi-annual liability so as the poster above says, paying by DD is essentially being given credit.

Of course it isn't being given credit. You can only use the roads on a day by day basis, not in a 365 day lump!. Paying any amount in advance of your actual useage is giving them credit.

Hedgehog99

Clifford_Pope wrote: »

Of course it isn't being given credit. You can only use the roads on a day by day basis, not in a 365 day lump!. Paying any amount in advance of your actual useage is giving them credit.

But if you pay annually, they get your money up front. DD is credit because you're paying twelfths, the last one only a month before the next year begins. So while I agree that you pay for each month as you are about to use it, you are depriving them of the interest on your money that they'd get if you paid up front. You would be lucky to earn 5%, but maybe they do - and they charge you correspondingly for DD. So, since you won't benefit by keeping your money for longer, pay up front and save the 5%.

TheCyclingProgrammer

Clifford_Pope wrote: »

You can only use the roads on a day by day basis, not in a 365 day lump!. Paying any amount in advance of your actual useage is giving them credit.

No, you're not, because there is no daily tax, its calculated and charged on an annual basis. The liability becomes due at the beginning of the year you are paying for, so paying by DD is paying on credit.

sheramber

the 5% charge is not because youare paying by dirct debit.

If you pay annually you have no administration charge

If you pay bi annually by a means other than direct debut- ie online, on the phone, at the Post Office, at localised Driver and Vehicle Licensing Agency (DVLA) offices or by post to the DVLA Head Office. you are charged a 10% administration charge

If you pay bi annually or monthly by direct debit you only pay 5% administration charge so you are saving by paying by paying by direct debit as opposed to other ways apart from paying annually for no extra charge

System

TheCyclingProgrammer wrote: »

The liability becomes due at the beginning of the year you are paying for, so paying by DD is paying on credit.

Exactly - they have rigged the rules so that they can extract up to a year's worth of credit from you. Opting to give them a little less credit by paying only monthly in advance does not mean they are giving you credit.

Credit occurs when you have consumed something in advance of the proportionate cost to date. Prepayment is when you pay up-front but have not yet had use of the proportionate amount of service.
Ask an accountant about Debtors and Prepayment, Creditors and Accruals.

antrobus

Clifford_Pope wrote: »

Exactly - they have rigged the rules so that they can extract up to a year's worth of credit from you. Opting to give them a little less credit by paying only monthly in advance does not mean they are giving you credit....

What difference does it make?

If it was the norm for VED to be paid monthly, and the govt decided to give people the option to pay a whole year's VED upfront in one lump sum, it would only be fair if they offered people a discount for so doing.