Monthly VED ?

Author
Discussion

jellypig

Original Poster:

112 posts

146 months

Thursday 11th September 2014
quotequote all
I thought I'd read in the press that there was to be a monthly (with 5% premium) option for VED from October.

Got the renewal for my play car, which cost me a lot per mile to tax last winter (certainly >£1/mile) , but there are only the options for 6months, 12months or SORN.

Did I misread the press?

OK, I could SORN, but.. monthly would be cooler, especially if its an instant/internetty jobby.

Corbeliere

683 posts

118 months

Thursday 11th September 2014
quotequote all
I think you will find that you can pay monthly for a 6 or 12 month period. Not just one month periods as you imagined. Pity really.

jbsportstech

5,069 posts

178 months

Thursday 11th September 2014
quotequote all
Paying monthly will be 5% charge as opposed to the 10% for 6 months tax under the old system so not all bad. If you pay for 12mths up front you get the 5% off.

ging84

8,828 posts

145 months

Thursday 11th September 2014
quotequote all
monthly does not start until next month

anonymous-user

53 months

Thursday 11th September 2014
quotequote all

budfox

1,510 posts

128 months

Thursday 11th September 2014
quotequote all
What are the chances of direct debits being automatically paused if you declare SORN? Nil or less I imagine.

AlexRS2782

8,023 posts

212 months

Thursday 11th September 2014
quotequote all
budfox said:
What are the chances of direct debits being automatically paused if you declare SORN? Nil or less I imagine.
Based on the info on the DVLA site (below) it should work and get cancelled as soon as you declare SORN. Well in theory anyway - when it comes to the DVLA anything is possible:

DVLA said:
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.

jellypig

Original Poster:

112 posts

146 months

Friday 12th September 2014
quotequote all
Thanks chaps.

Think I'll tax it anyway, and then consider SORNing for Nov-Feb.

Red Devil

13,055 posts

207 months

Friday 12th September 2014
quotequote all
AlexRS2782 said:
budfox said:
What are the chances of direct debits being automatically paused if you declare SORN? Nil or less I imagine.
Based on the info on the DVLA site (below) it should work and get cancelled as soon as you declare SORN. Well in theory anyway - when it comes to the DVLA anything is possible:

DVLA said:
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.
This is highly misleading. The DVLA (as with any other organisation you have given a mandate to) has no power to cancel a DD. Only the giver (i.e. the account holder) can instruct their bank to do so. What the DVLA actually mean is that they will suspend collection (i.e. by removing your account data from the BACS batch file). This does not mean the DD is no longer in force. If you check with your bank you will find it is still active. Only if it is subsequently not collected for a continuous period of 13 months will the mandate become flagged as dormant.

Too right that anything is possible with the DVLA. Do you really want to put that much faith in them given their track record? They are the last people I would trust with my bank account details. How long before they unilaterally decide to collect SORN/Change of Owner late notification and back tax penalties by raiding your account?

In this context, DD is not the panacea that some people may think it is. Failure to make regular checks on your account could cost you.

B'stard Child

28,324 posts

245 months

Friday 12th September 2014
quotequote all
Red Devil said:
AlexRS2782 said:
budfox said:
What are the chances of direct debits being automatically paused if you declare SORN? Nil or less I imagine.
Based on the info on the DVLA site (below) it should work and get cancelled as soon as you declare SORN. Well in theory anyway - when it comes to the DVLA anything is possible:

DVLA said:
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.
This is highly misleading. The DVLA (as with any other organisation you have given a mandate to) has no power to cancel a DD. Only the giver (i.e. the account holder) can instruct their bank to do so. What the DVLA actually mean is that they will suspend collection (i.e. by removing your account data from the BACS batch file). This does not mean the DD is no longer in force. If you check with your bank you will find it is still active. Only if it is subsequently not collected for a continuous period of 13 months will the mandate become flagged as dormant.

Too right that anything is possible with the DVLA. Do you really want to put that much faith in them given their track record? They are the last people I would trust with my bank account details. How long before they unilaterally decide to collect SORN/Change of Owner late notification and back tax penalties by raiding your account?

In this context, DD is not the panacea that some people may think it is. Failure to make regular checks on your account could cost you.
I agree - I thought it was just me that thought I'll skip the monthly DD process and continue to do my classics/motorcycles as a 6mthly summer driven option and my everyday as 12 mths