Why is my TV Licence £238.50 for one year?

Ricmondo

I started a monthly TV licence Direct Debit in May for one year - but it looks like the overall cost will be £238.50 instead of £159.

I believe a TV licence is £159 annually.  I understand that I have to pay a year in advance over six months - but the licence expiry date is for one whole year. With the addition of six payments of £13.25 - totalling £238.50, I've paid for 18 months?  Can anyone please explain this 🙂

Started May 2022  >  Expires 30th April 2023  (one year)
5 x £31.80 
6 x £13.25 
Total - £238.50

Thanks x

Merlin139

You pay for a full licence in the first 5 months and then you start paying for 6 months worth towards the next years licence. You will then pay 12 months worth of DD's which will pay for the balance outstanding for the next year and 6 months towards the following year.

You could if you wish stop your DD after the 5 months and then apply for a new licence and start the ball rolling again.

MorningcoffeeIV

The ongoing DD is for your future months, not the first year, which is covered in the first 6 months.

So by the end of the first year, you have 6 months of your licence remaining and paid for. 

Cornucopia

At the end of the first 12 DD payments, you will be half-a-Licence in credit, and that is how the scheme is intended to work.

wild666

Have you done it through a website that will take care of your bills like TV licence, CT, and other utilities they charge for their service. It's best to go straight to the TVL website and pay directly in the method you favour.

[Deleted User]

I think allowing any algorithm to manage your hard earned money is a cop-out.
 You work hard to earn it, you manage your own self.
Just my opinion.

Neil_Jones

Catsacor said:

I think allowing any algorithm to manage your hard earned money is a cop-out.
 You work hard to earn it, you manage your own self.
Just my opinion.

Of course if people actually read things...

https://www.tvlicensing.co.uk/pay-for-your-tv-licence/ways-to-pay/direct-debit - "We'll spread the cost of your first Direct Debit licence over six months, at around £26.50 a month. From then on you’ll pay around £13.25 a month."

This is expanded on here:

https://www.tvlicensing.co.uk/faqs/FAQ173 - "Under the regulations for our monthly Direct Debit scheme you usually pay for your first licence over six months or less in payments of around £26.50.

After this your regular monthly payments will continue straight away as you save towards your next licence, spreading the cost in 12 monthly payments of around £13.25 – six before your next licence is due to begin and six after."

So the OP clearly didn't read the website before buying.  Of if they have gone through one of those "do it for me because I'm too idle" things, then more fool them.

johnbhoy70

Noticed this years ago and went to quartely payments which costs about a £5 a year extra but takes away the hassle of remembering to cancel it every year and then renewing. 

Brie

You do have the option to cancel your DD once you've paid for the year.  Unlike utility companies they will automatically refund you any amount you have paid that exceeds the annual charge.

Cornucopia

To be clear, there is no need to cancel the Licence unless you want to.   Leaving it to run as in intended may cost a few pence extra in interest, but it is probably the least hassle approach for those people who need a Licence.