The Driver and Vehicle Licensing Agency (DVLA) has reminded millions of motorists that they can spread the cost of their vehicle tax. Drivers can choose to pay monthly, every six months, or annually through Direct Debit.
5% surcharge on non-annual payments
Motorists who opt for monthly or six-monthly payments face a 5% surcharge on the amount they pay. There is no surcharge for those who choose to pay annually. The DVLA said drivers can set up a Direct Debit when taxing their vehicle online or at a Post Office.
Setting up a Direct Debit
Importantly, you do not have to be the registered keeper of the vehicle to set up the Direct Debit. However, emails and letters about the Direct Debit payments will be sent to the person whose bank account is being used. Drivers will need to provide their address and date of birth, along with their bank or building society name, account number and sort code.
The DVLA said the first payment will not be taken until the vehicle tax has started. It warned that this can take up to 10 days, although motorists can continue using their vehicle before the payment is taken. After that, payments will normally be taken on the first working day of the month when the Direct Debit is due.
Weighing convenience against cost
The DVLA's reminder is likely to be particularly useful for motorists facing larger annual bills who want to avoid a single sizeable payment. However, drivers should weigh up the convenience of spreading the cost against the additional 5% charge. Those paying annually avoid the surcharge altogether. Drivers can also change how often they pay, change their bank account or payment method, or cancel a Direct Debit.
