Car Tax

Liverpool1986

I have been paying my Car Tax via DD for years as it automatically renews, I dont believe I even get a renew letter it just carries over.. Its just come to my attention you pay more for car tax if you pay by DD.

Shouldnt the DVLA or Tax office make you aware that you could save money paying in full each year than just automatically taking the DD.

Could be alot of people also in same boat paying more than they need to as not made aware it costs more via DD as we do not receive a renew letter 

Liverpool1986

Just checked, I am correct they do not send a V11 reminder if pay by DD just a schedule when your payments will be taken.

eskbanker

Spreading payments across instalments by DD across the year has been more expensive than single annual payments for as long as I can remember, the details are shown at https://www.gov.uk/vehicle-tax-rate-tables

Once you've signed up to that principle with the DD mandate, they only need to notify you when rates change, rather than annual renewals as such.

lincroft1710

The V11 clearly shows monthly DD is more expensive

mebu60

Liverpool1986 said:

I have been paying my Car Tax via DD for years as it automatically renews, I dont believe I even get a renew letter it just carries over.. Its just come to my attention you pay more for car tax if you pay by DD.

Shouldnt the DVLA or Tax office make you aware that you could save money paying in full each year than just automatically taking the DD.

Could be alot of people also in same boat paying more than they need to as not made aware it costs more via DD as we do not receive a renew letter 

Presume you mean monthly by DD as I also pay by DD but annually.

A single annual payment has always been the less expensive option for car tax. 

molerat

Monthly DD has always been more expensive than paying 12 months up front, it is clearly shown when originally opting for that payment method.  Strangely paying 6 months by DD is cheaper than paying 6 months by card.

Bookworm105

Liverpool1986 said:

Just checked, I am correct they do not send a V11 reminder if pay by DD just a schedule when your payments will be taken.

the fact you did not pay attention to the extra cost when going monthly is not really a cause for a general swipe at "the system"

apart from council tax I cannot think of any other instance that permits payment by instalment where there is no premium built into the instalment price

Liverpool1986

I am pointing out the fact they should send a V11 form (They dont send one if you jave set up DD) they dont even tell you what the prices will be and give you the option of paying annually stating its cheaper.

Banks and insuramces have to provide that information on any auto renew, I think it should also be an option on car tax

Liverpool1986

lincroft1710 said:

The V11 clearly shows monthly DD is more expensive

You dont get a V11 when you set up DD, so if you set up DD 10 years ago, each year its just been autorenewing without them providing the cost or price or any other method of payment.. 

I think they should send a V11 regardless of payment, making customers aware of the new price and options of payment, thats all 

frayedknot

Bookworm105 said:

Liverpool1986 said:

Just checked, I am correct they do not send a V11 reminder if pay by DD just a schedule when your payments will be taken.

the fact you did not pay attention to the extra cost when going monthly is not really a cause for a general swipe at "the system"

apart from council tax I cannot think of any other instance that permits payment by instalment where there is no premium built into the instalment price

Water rates, sometimes car or house insurance, court fines, social fund loans,  interest-free credit offers etc

Liverpool1986

Thanks for all your replies