Support my e-petition on car tax direct debit

pjcox2005

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.

But perhaps they've factored that into the calculation. So they need £105 say.

They've decided that they could raise all money upfront and save or make money on interest and reduce admin charges. So factoring in savings of £5, they only ask for £100 as the tax.

Alternatively they don't make the savings, and therefore need to raise the full £105 as the tax and therefore picked up by the payer.

dori2o

[QUOTE=TheCyclingProgrammer;66855184]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.[/QUOTE]
Not anymore it isn't.

It may have been the case that you had to pay annually-bi-annually in advance and reclaim the amount later, but that was when you had to display a tax disc to show that you had paid.

Now that discs are a thing of the past you are actually paying in advance to use the road for the following month when paying eo by DD. There is no requirement for you to committ to 6 months or 12 months under the new system. You can pay month by month and then cancel the payment when you give up the car/stop using it and declare it SORN.

The 5% charge is a joke and should not be charged by a Government department. No other department charges for DD seo why should the DVLA.

bargainbetty

Because processing a direct debit incurs an administration fee, and other taxpayers shouldn't have to fund your choice to use that payment option?

A once or twice yearly payment made directly by you doesn't incur it, so it is not charged. If you want a monthly service, you pay the charge for it.

Get over it.

zygurat789

pjcox2005 wrote: »

But perhaps they've factored that into the calculation. So they need £105 say.

They've decided that they could raise all money upfront and save or make money on interest and reduce admin charges. So factoring in savings of £5, they only ask for £100 as the tax.

Alternatively they don't make the savings, and therefore need to raise the full £105 as the tax and therefore picked up by the payer.

I don't think that the treasury could work to such a simple calculation.

sheramber

Buy a car with no VED to pay.

NO worries about any administration charge

dori2o

bargainbetty wrote: »

Because processing a direct debit incurs an administration fee, and other taxpayers shouldn't have to fund your choice to use that payment option?

A once or twice yearly payment made directly by you doesn't incur it, so it is not charged. If you want a monthly service, you pay the charge for it.

Get over it.

No other Gov department charges for DD, why should the DVLA be any different?

sheramber

I tis not a chrge for paying by direct debit.

It is a charge for paying less than a year's tax at the time.

If you pay annually by direct debit there is no surcharge - same as if you renew other than by direct debit.

If you renew 6 monthly by direct debit you pay only 5% surcharge whereas of you renew 6 monthly by anither means you pay 10% surcharge so you are saving 5% by using direct debit.

Monthly was not available before but has the same surcharge as bi annual direct debit.