We’ve recently launched our latest vehicle tax evasion campaign, ‘Tax it, don’t risk it’, to remind our customers of the importance of taxing their vehicle on time.
Did you know that you can set up a Direct Debit when you tax your vehicle online or at a Post Office? It’s never been easier to tax your vehicle and with the option to spread your payments out throughout the year, you can be sure that your vehicle is taxed at all times.
Still have questions? Don’t worry, we’ve answered some of the most frequently asked questions about renewing vehicle tax with Direct Debit.
You can set up a Direct Debit when you tax your vehicle online or at a Post Office.
You do not need to be the vehicle’s registered keeper to set up a Direct Debit. Emails and letters about Direct Debit payments are sent to the account holder.
You cannot set up a Direct Debit for an account that needs 2 signatures.
No, once your Direct Debit is set up you’re good to go and it will automatically renew - one less thing to remember!
Once you’ve told us you’ve changed your vehicle, we’ll cancel your Direct Debit and you’ll get a refund for any full months of remaining tax.
The amount you pay depends on how often you want to make a payment.
There’s a 5% surcharge if you pay monthly or 6 monthly.
Your vehicle tax is automatically renewed when it’s due. It’s a helpful way to spread the cost, making sure you don’t forget and risk financial penalties, court action, clamping and even the loss of a car. It's also flexible, simple to do, saves time and gives you peace of mind.
Cancel your Direct Debit with your bank or building society and tax your vehicle again selecting the payment method of your choice.
If you need to change your bank details, go to: www.gov.uk/vehicle-tax-direct-debit/change-accounts for more information.
Spread the cost of your vehicle tax with Direct Debit. Tax it, don’t risk it!
Full details and everything you need to know on paying your vehicle tax by Direct Debit can be found here: www.gov.uk/vehicle-tax-direct-debit
I left a comment but you are stating I have not
I said, you charge interest if paying by instalments but you offer no discount for a payment made in full Rates maybe small but nevertheless, you are getting the money well in advance.
Hello Judith Motorists have able to pay their vehicle tax by Direct Debit, annually, six monthly or monthly since 2014. To limit the impact on public finances a small surcharge of 5% is levied on six monthly and monthly payments and is covered in legislation: https://www.legislation.gov.uk/ukpga/1994/22/section/4 Our role is to administer and collect vehicle tax on behalf of HM Treasury. Any decisions on vehicle tax, the structure, rates, or alternatives, is a matter for the Chancellor of the Exchequer. And like all taxes, the Chancellor keeps vehicle tax under review each year.
Comment by C D Wells posted on 02 March 2023 Direct debit in place since 1st July 2022. Comment by Miss Patricia Purvis posted on 02 March 2023I have over the years been paying my Road tax
through Barclays bank and I do a bank transfer from my Current account to the A/C I have set up, I have no problem with this I have never failed a payment for my road tax, as I have enough Direct debits coming out every month
I cannot have any more direct debits set up.
At the moment I have at least 7 taken from my
Bank. The last thing I want for you to go into the account and there's not enough funds.
Good system, will be doing it when I next tax my car. Pity it can’t be set it up before I tax the car next time.
Comment by Ulisses Lopes posted on 03 March 2023 Thanks for letting me know. thanks! Comment by Bernard Sherry posted on 04 March 2023Have always paid by direct debit but this year I have been able to tax all my vehicles outright.But paying by direct debit is a very easy method to keep on top of your budgeting although fees added for road tax should be removed.
Comment by Mike Butler posted on 04 March 2023 It’s the 5% charge which puts me off thatThanks for your comment Mike Motorists have able to pay their vehicle tax by Direct Debit, annually, six monthly or monthly since 2014. To limit the impact on public finances a small surcharge of 5% is levied on six monthly and monthly payments and is covered in legislation: https://www.legislation.gov.uk/ukpga/1994/22/section/4 Our role is to administer and collect vehicle tax on behalf of HM Treasury. Any decisions on vehicle tax, the structure, rates, or alternatives, is a matter for the Chancellor of the Exchequer. And like all taxes, the Chancellor keeps vehicle tax under review each year.
Comment by Richard Browne posted on 04 March 2023It is more expensive to tax a vehicle monthly or six monthly by 5%, This is just an added cost that we do not need.
Hello Richard Thanks for your comment. Motorists have able to pay their vehicle tax by Direct Debit, annually, six monthly or monthly since 2014. To limit the impact on public finances a small surcharge of 5% is levied on six monthly and monthly payments and is covered in legislation: https://www.legislation.gov.uk/ukpga/1994/22/section/4 Our role is to administer and collect vehicle tax on behalf of HM Treasury. Any decisions on vehicle tax, the structure, rates, or alternatives, is a matter for the Chancellor of the Exchequer. And like all taxes, the Chancellor keeps vehicle tax under review each year.
Comment by Mr Vincent d Doherty posted on 05 March 2023 Dela are a good at getting things sorted out OK quickly and give you peace of mind Comment by Michael Pilling posted on 06 March 2023Why should there be a 5% surcharge for paying by monthly direct debit?
That doesn’t apply to council tax or TV licensing or anything else I pay across the year.
I use my vehicle progressively through the year and the VED should be proportional each month of the year.
I would love to use this service but not until this stealth tax on tax is removed.
Hello Michael - many thanks for commenting on our blog. Motorists have able to pay their vehicle tax by Direct Debit, annually, six monthly or monthly since 2014. To limit the impact on public finances a small surcharge of 5% is levied on six monthly and monthly payments and is covered in legislation: https://www.legislation.gov.uk/ukpga/1994/22/section/4 Our role is to administer and collect vehicle tax on behalf of HM Treasury. Any decisions on vehicle tax, the structure, rates, or alternatives, is a matter for the Chancellor of the Exchequer. And like all taxes, the Chancellor keeps vehicle tax under review each year.
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