Direct Debit Payments to UK.Gov - new campaign?

Revilo2000

Why is it that utilities, phone companies and others provide a discount if you pay by monthly direct debit (presumably becasue it is less admin), but if you pay anything to UK.gov by monthly direct debit, you pay more (e.g. TV licence, road tax).

antrobus

Revilo2000 wrote: »

Why is it that utilities, phone companies and others provide a discount if you pay by monthly direct debit (presumably becasue it is less admin), but if you pay anything to UK.gov by monthly direct debit, you pay more (e.g. TV licence, road tax).

Because the TV licence and road tax are annual charges, and so by taking the monthly option you are being extended credit, which you pay for.

In the same way that, for example, motor insurance is a an annual charge, which you will pay more for if you take the monthly option.

surfsister

and when you ask for a refund the tv people only refund full quarters!! they keep the rest!! how's that legal?

BU

Check tvlicensing.co.uk monthly direct debit. You pay half the money before the license is due and half after the license is due. i.e.the same cost as paying the full amount in the middle. This has an added bonus of picking up a valuable direct debit !

unforeseen

Revilo2000 wrote: »

Why is it that utilities, phone companies and others provide a discount if you pay by monthly direct debit (presumably becasue it is less admin), but if you pay anything to UK.gov by monthly direct debit, you pay more (e.g. TV licence, road tax).

Because those companies have to make themselves attractive to the consumer. UK gov has a monopoly on certain things so don't need to bother.

I would also think that what you pay is set down in law then they may not in a position to offer it for less.

Bigmasmid

This got me annoyed too! The government should be helping those in financial difficulty not charging them more! So ive created a petition! Help me spread the word!

As a new user i cant post links but its on the government petitions site.

My petition:

Make Vehicle tax the same price as when paid monthly as when paid in a lump sum.

Being on low income usually means a lower ability to pay bills. Therefore when presented with a large bill the easiest thing to do is spread the payments. Yet this often costs more per month than paying in one go so people who can pay in one go gain and those who need to save the most pay extra.

Whilst it is understandable for a small company to charge extra for monthly payments to cover their fees, a government agency should understand the difficulties of those in financial hardship and realise that they are the ones who need the lower price over those not in financial difficulty. A vehicle that costs £295 to tax for 12 months in one payment costs £162.25 for 6 months. Thats a difference of £29.50 a year. Thats 10% extra for paying in two installments instead of one.