New data has found that 2.9 million drivers are paying more for their car tax than necessary because they are unaware of a five per cent surcharge.
Drivers are set to be clobbered by a five per cent car tax ‘surcharge’ as new rates kick in from April 1. New data has found that 2.9 million drivers are paying more for their car tax than necessary because they are unaware of a five per cent surcharge.
There’s a 5% surcharge if you pay monthly or 6 monthly. Tom Banks, car insurance expert at Go.Compare, said: “Setting up a direct debit is an easy way to pay for your yearly car tax, but many drivers don’t realise they’re forking out extra for that convenience.
“For some vehicle owners, paying monthly also makes the most sense as it allows you to spread the cost, but those who can afford to pay in full should consider switching to a one-off annual payment to save on the surcharge.”
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For someone paying £1,000 a year in car tax with a direct debit, they are being slapped with a £50 surcharge every year, which quickly racks up. 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.
On its website, the DVLA said: “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 need your address and date of birth and your bank or building society name, account number and sort code, the DVLA adds.
You also need 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.