I thought I was clued up on this change, but discovered when I renewed recently that it is not as I had supposed, and not as many reports had suggested.
I thought we were changing over to a system of continuous licensing, paid monthly by direct debit. One article said we could never again forget to tax our cars, because it would automatically remain current as long as the direct debits were paid.
But on logging in online taxation I found that it is just the same old system. On still has to select a period (6 months or 12 months), and there is still an expiry date upon which one has to renew. The only difference is that one can opt to pay by direct debit, but it costs more than paying in a lump sum.
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I've never read anywhere it was to become direct debit and monthly. Where did you read that?
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Renewed the tax on the Astra last week, you can indeed pay monthly by direct debit, but so far as I could see you're still buying a year's tax.
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"Tax will be automatically renewed and the Direct Debit payments will continue to be taken providing an MOT is in place at the point of tax renewal. Payments will continue automatically until you tell DVLA to stop taking them or you cancel the Direct Debit with your bank. Valid insurance should also be in place for vehicles registered in Northern Ireland.
The Direct Debit will be cancelled and payments automatically stopped when you tell DVLA that you no longer have the vehicle, or the vehicle has been taken off the road and a Statutory Off Road Notification (SORN) has been made. The Direct Debit will also be cancelled if a vehicle is scrapped by an ATF, exported or if the tax class of the vehicle is changed to an exempt duty tax class."
government website
www.gov.uk/government/news/vehicle-tax-changes
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Didn't know about the DD system but as the missus Fiesta is due at the end of this month then I might just go down that route.
Very handy, unless I suppose if you are on one of the low road tax brackets !
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I didn't know either. Next year we might do that. No point on mine even if it was my own - it will be about £20pa I think.
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>> "Tax will be automatically renewed and the Direct Debit payments will continue to be taken
>> providing an MOT is in place at the point of tax renewal. Payments will continue
>> automatically until .....
>>
Yes, I read all that. It implies that if you select that option then the tax will continue to roll on monthly, indefinitely.
But it isn't like that. You are still only signing up to a year of tax, and it will still need renewing after 12 months. It isn't actually continuous licensing at all, just a way of charging more for the same 12-monthly periods.
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The tax is due annually just like your car insurance or your break down cove.If you pay by dict debit your tqx will be renewed automatically just like your car insurance as th government website states.
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>> The tax is due annually just like your car insurance or your break down cove.If
>> you pay by dict debit your tqx will be renewed automatically just like your car
>> insurance as th government website states.
>>
So someone who pays by direct debit would not get the annual V11 reminder, and wouild not need to renew online? The car would automatically remain taxed indefinitely?
That's how SORN now works anyway - no reminders or renewals needed, it remains in force for ever until cancelled.
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>>So someone who pays by direct debit would not get the annual V11 reminder,
My understanding is that the only change is an optional new way of paying for up to ONE year.
.
At then end of a year the process is complete, as now, and a V11 arrives and you start the process from fresh as at present.
>> and wouild not need to renew online?
You would need to renew, as now. How you do it is up to you
>>The car would automatically remain taxed indefinitely?
No - see above.
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henry k,
The link provided above seems to say DD will allow VED to be automatically renewed. It doesn't mention reminders but I assume you'll get a V11 or sub variant. Like the insurance renewal stuff it will tell you that no action is needed UNLESS you want to cancel.
If you cancel then you'll need to either pay the 6/12 month lumo sum or SORN.
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>> >>
>> You would need to renew, as now.
But that's not what it says here:
"Tax will be automatically renewed and the Direct Debit payments will continue to be taken providing an MOT is in place at the point of tax renewal"
Does it renew automatically, or not?
Last edited by: Cliff Pope on Mon 15 Dec 14 at 10:26
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Sigh!
>> Yes, I read all that. It implies that if you select that option then the
>> tax will continue to roll on monthly, indefinitely.
No it doesn't, I have no idea how you get that implication, its clear that you are paying a lump sum for a defined period of tax, albeit paying monthly.
Last edited by: VxFan on Mon 15 Dec 14 at 13:23
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>> >> its clear that
>> you are paying a lump sum for a defined period of tax, albeit paying monthly.
>>
As I quoted:
"Tax will be automatically renewed and the Direct Debit payments will continue to be taken providing an MOT is in place at the point of tax renewal"
If that doesn't mean that it will renew automatically after 12 months if there is an MOT in place, what does it mean?
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>> the tax will continue to roll on monthly, indefinitely.
>>
>> No it doesn't, I have no idea how you get that implication, its clear that
>> you are paying a lump sum for a defined period of tax, albeit paying monthly.
>>
From the DVLA site..
''Paying vehicle tax by Direct Debit
From 1 October 2014 (5 October if setting up at a Post Office®), Direct Debit will be offered as an additional way to pay for vehicle tax. This will be available for customers who need to tax their vehicle from 1 November 2014:
annually
6 monthly
monthly (12 months tax paid for on a monthly basis)
Tax will be automatically renewed and the Direct Debit payments will continue to be taken providing an MOT is in place at the point of tax renewal. Payments will continue automatically until you tell DVLA to stop taking them or you cancel the Direct Debit with your bank. Valid insurance should also be in place for vehicles registered in Northern Ireland.
The Direct Debit will be cancelled and payments automatically stopped when you tell DVLA that you no longer have the vehicle, or the vehicle has been taken off the road and a Statutory Off Road Notification (SORN) has been made. The Direct Debit will also be cancelled if a vehicle is scrapped by an ATF, exported or if the tax class of the vehicle is changed to an exempt duty tax class.''
Read the bit I have put in bold... seems clear to me.
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>
>> Read the bit I have put in bold... seems clear to me.
>>
That's how I read it too, but others seem to disagree.
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www.autoexpress.co.uk/car-news/consumer-news/88361/tax-disc-changes-everything-you-need-to-know-about-uk-road-tax
The DVLA will send you a reminder when your road tax is up for renewal in the time-honoured fashion, you can then pay your road tax online, over the phone or at the Post Office.
Plus as highlighted above...
So it looks like my understanding was wrong. :-(
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I had hoped the new system would make it easy to put my MX-5 on the road during 3/4 of the year, and off the road for Dec-Feb. But it isn't set up that way.
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We opted to use direct debit; cost more than single lump sum but less than 2 x 6 month payments IIRC.
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...and it's not unusual for a single one-off payment to be cheaper than 12 monthly payments.
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Effectively then, does this mean that you can set up the DD and then cancel it any time and SORN your car. Meaning that you've only taxed the car until the cancellation.
One way of getting the car taxed for only a month, say....I assume ? Something you haven't been able to do for many years unless you use the refund system.
I will use it at the end of February for the Note...it's a couple of hundred quid.
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It's to early to say as no-one will have renewed via DD, but I suspect if it's like everything else, you will get a V11 that states: "You do not need to do anything - your new payment amount will be £45 per month, and the first payment collected from 1st of October 2015"
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>>
>> One way of getting the car taxed for only a month, say....I assume ? Something
>> you haven't been able to do for many years unless you use the refund system.
>>
Perhaps it depends on which day in the month the direct debit is taken. Is it taken on the 1st, and then covers the tax for that month, in advance?
Still not clear whether when signing up to DD payment one is buying 12 months-worth, with a fixed expiry date but payable monthly, or the tax only accrues month by month as each DD payment clears the banks.
Presumably if the former then there would be the usual credit agreement to sign, as with insurance?
If you only want one month's worth, so let one DD go through and then cancel the DD, you get valid tax until the end of the month? Or does cancelling the DD automatically cancel the tax immediately? Or does DVLA only know it has been cancelled when they try to use the mandate for the following month?
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Car Tax changes (again) - rtj70
