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Vehicle tax Direct Debit payments

For owners of cars where the car is used only for part of a year - for example an RV8 used only in the Summer for 6 months - Chris Hunt Cooke highlights how payment by Direct Debit rather than a payment with a debit or credit card can save you money.
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Useful links to the GOV.UK website

Cars and light goods vehicles registered before 1st March 2001
Information from the GOV.UK webpage

Vehicle tax Direct Debit payments
Information from the GOV.UK webpage

Posted: 190402

Saving money paying 6 month vehicle tax by Direct Debit rather than by a debit or credit card
For owners of cars where the car is used only for part of a year - for example an RV8 used only in the Summer for 6 months - Chris Hunt Cooke highlights how payment of vehicle tax by Direct Debit rather than a payment with a debit or credit card, can save you money.

Chris says "like many people at this time of year I was taxing a car for 6 months over the summer, and in the process was looking at the new VED rates. I noticed that instead of using a card online, it is now cheaper to give DVLA a Direct Debit, for cars over 1549cc registered before 1st March 2001 but not in the Historic class, this saves £6.62 (or 4.54%). You have to cancel the Direct Debit once payment has been taken because if you do not do so in 6 months time the car will be taxed for a further 6 months by the Direct Debit.

Even better, a monthly Direct Debit costs exactly the same over 6 months but offers greater flexibility in terms of the period taxed. So if October is looking good and you want to continue using the car for a further month, you just let the Direct Debit run for an additional month before cancelling. Conversely, if you do not plan to use the car in September, you can cancel the Direct Debit early and pay for only 5 months.

You do have to declare SORN when the vehicle tax expires after you have cancelled the Direct Debit. You can get the same result by getting excess months refunded or getting another 6 months and then cancelling, but a Direct Debit makes it easy and saves money".

See our information note