Car Tax & Interest Made/Lost?

Belnahua

In the past we all used to go down to the post office and join the long queue on the last day of the month, to get our car tax renewed.

We also used to pay by cheque, which took a couple more days to come off our bank accounts.

Now, we can do it online, and according to the DVLA's website, we have to do it 5 working days beforehand to ensure we get it in time.

So, just how much extra interest is the government getting out of us by this sneaky ploy of getting our money earlier?

scbk

£0

You don't have to buy it 5 days in advance (although it is a good idea)

And in the past people would've gone down to the PO and paid cash, and usually a good week or 2 before their tax runs out anyway

geo555

Assuming an average of £120 for tax, interest rates at 5% and 5 days = 10p interest. Now place a value the time it takes travelling to and queueing in the post office?

Belnahua

geo555 wrote: »

Assuming an average of £120 for tax, interest rates at 5% and 5 days = 10p interest. Now place a value the time it takes travelling to and queueing in the post office?

Ah, but I'm not talking about our individual potential lost interest, but how much more the government gets by getting our money earlier on a whole for the whole country!

vikingaero

Belnahua wrote: »

Ah, but I'm not talking about our individual potential lost interest, but how much more the government gets by getting our money earlier on a whole for the whole country!

I doubt the Government gets much of any interest. It's more likely that the interest is swallowed up and squandered by the lovely quango that is the DVLA.

Conor_3

Belnahua wrote: »

Ah, but I'm not talking about our individual potential lost interest, but how much more the government gets by getting our money earlier on a whole for the whole country!

Nothing. Who are they going to get interest from?

MarkyMarkD

Forget this "the government is making money out of us". Substitute "the government may save a few pence, as they will have to borrow less, and hence they'll have to tax us less to deliver the same level of services".

Inactive

Support your local Post Office, otherwise you may lose it.;)

Hintza

Conor wrote: »

Nothing. Who are they going to get interest from?

Interesting point but I would assume they do. This sort of money will be banked somewhere and lent out agin.

But even if its not it will go someway to reducing the national debt for a few days.

So onw way or another it will be earning them money or just costing them less.

TheImportanceOfBeingIdle

Here's a question for the OP to ponder over.

Does it really matter?

dzug

Hintza wrote: »

Interesting point but I would assume they do. This sort of money will be banked somewhere and lent out agin.

But even if its not it will go someway to reducing the national debt for a few days.

So onw way or another it will be earning them money or just costing them less.

So what???

In this case THEM = US, arguably.