https://dvladigital.blog.gov.uk/2023/03/02/set-up-a-direct-debit-to-tax-your-vehicle-today/
Posted by: DVLA External Communications, Posted on: - Categories: DVLA Digital Services
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.
How do I set up 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.
What will I need?
You need:
- your address and date of birth
- your bank or building society name, account number and sort code
- the reference number from either your V11 reminder, registration certificate V5C (log book) or the green (V5C/2) ‘new keeper’ slip from the log book if you’ve just bought it
You cannot set up a Direct Debit for an account that needs 2 signatures.
Do I need to do anything once it’s set up?
No, once your Direct Debit is set up you’re good to go and it will automatically renew - one less thing to remember!
What happens if I change my vehicle?
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.
How much does it cost and how often do I need to pay?
The amount you pay depends on how often you want to make a payment.
- annually
- monthly
- every 6 months
There’s a 5% surcharge if you pay monthly or 6 monthly.
What are the benefits of setting up Direct Debit?
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.
How do I stop paying by Direct Debit?
Cancel your Direct Debit with your bank or building society andtax your vehicle again selecting the payment method of your choice.
I’ve changed my debit card, how do I let you know?
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
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14 comments
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Comment by Judith Connolly posted on
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.Link to this comment
- Replies to Judith Connolly>
Comment by DVLA's External Communications Team posted on
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.
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- Replies to Judith Connolly>
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Comment by C D Wells posted on
Direct debit in place since 1st July 2022.
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Comment by Miss Patricia Purvis posted on
I 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.Link to this comment
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Comment by M L Brebner posted on
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.
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Comment by Ulisses Lopes posted on
Thanks for letting me know...thanks!
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Comment by Bernard Sherry posted on
Have 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.
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Comment by Mike Butler posted on
It’s the 5% charge which puts me off that
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- Replies to Mike Butler>
Comment by DVLA's External Communications Team posted on
Thanks 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.
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- Replies to Mike Butler>
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Comment by Richard Browne posted on
It is more expensive to tax a vehicle monthly or six monthly by 5%, This is just an added cost that we do not need.
Link to this comment
- Replies to Richard Browne>
Comment by DVLA's External Communications Team posted on
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.
Link to this comment
- Replies to Richard Browne>
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Comment by Mr Vincent d Doherty posted on
Dela are a good at getting things sorted out OK quickly and give you peace of mind
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Comment by Michael Pilling posted on
Why 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.Link to this comment
- Replies to Michael Pilling>
Comment by DVLA's External Communications Team posted on
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.
Link to this comment
- Replies to Michael Pilling>
As an enthusiast with a deep understanding of vehicle taxation and associated processes, let's delve into the concepts presented in the provided article from DVLA Digital Services, dated March 2, 2023.
The article primarily discusses the launch of the DVLA's latest vehicle tax evasion campaign, emphasizing the importance of timely taxation under the slogan 'Tax it, don’t risk it.' The central focus is on the option for individuals to set up a Direct Debit for their vehicle tax payments. Here are the key concepts covered in the article:
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Direct Debit Setup:
- Users can set up a Direct Debit for their vehicle tax when doing so online or at a Post Office.
- The person setting up the Direct Debit does not necessarily have to be the registered keeper of the vehicle.
- Required information includes personal details (address and date of birth) and banking information (bank or building society name, account number, and sort code).
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Documentation for Direct Debit Setup:
- Necessary documents for setting up a Direct Debit include the reference number from the V11 reminder, registration certificate V5C (log book), or the green (V5C/2) 'new keeper' slip from the log book if the vehicle was recently purchased.
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Automatic Renewal and Changes:
- Once the Direct Debit is set up, it automatically renews, relieving the vehicle owner of the need to remember to renew manually.
- If the vehicle owner changes their vehicle, they need to inform the DVLA, and the Direct Debit will be canceled, with a refund for any remaining tax months.
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Payment Frequency and Surcharge:
- The frequency of payments can be chosen from annually, monthly, or every six months.
- A 5% surcharge is applied for monthly or six-monthly payments.
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Benefits of Direct Debit:
- Vehicle tax is automatically renewed, reducing the risk of financial penalties, legal action, clamping, or loss of the vehicle.
- Provides a convenient way to spread the cost, saving time and ensuring peace of mind.
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Cancellation and Changing Bank Details:
- To stop payments via Direct Debit, individuals can cancel it with their bank or building society and then choose an alternative payment method.
- If there's a need to change bank details, there's a provided link for more information.
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User Comments:
- The article includes comments from users, expressing their experiences with the Direct Debit system. Some mention the ease of the process, while others express concerns about the 5% surcharge.
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Response to User Comments:
- DVLA's External Communications Team responds to user comments, providing additional information about the 5% surcharge and clarifying that it is to limit the impact on public finances, as covered in legislation.
Understanding these concepts allows individuals to make informed decisions about setting up Direct Debit for their vehicle tax payments and provides insights into the DVLA's efforts to streamline and modernize the taxation process.
