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This section explains how to set up vehicle tax Direct Debit payments and how to change or cancel them. It is a simple way to pay road fund tax by Direct Debit payment.
DVLA DIRECT DEBIT: The best time for setting up this type of payment system is when you are taxing a vehicle.
You can set up road tax Direct Debit payments either online or at one of the larger Post Office branches.
You do not need to be the registered keeper of the vehicle to set it up.
Pay Road Tax Direct Debit Cost
You can choose between three different frequencies of debit payments.
Thus, it is the frequency of the payments that determines the total amount vehicle tax rates that you will pay.
If you choose to pay monthly, or once every six (6) months, there is a 5% surcharge. But, if you make one single payment every year there will be no surcharge to pay.
Documentation Required
When you set up a DVLA Direct Debit payment system you are going to need some information such as:
- Your full address (including postcode) and your date of birth.
- The name, the account number, and the sort code of your bank or building society.
Note: Some bank or building society accounts need two signatures (e.g. joint accounts). You cannot use this type of account for setting up Direct Debit for road tax payments.
How DVLA Direct Debit Payments Work
- The DVLA will send confirmation when they have set up your Direct Debit payment system. This could be by email or by postal methods.
- They will not take the first payment until the vehicle tax is valid (i.e. from the start date). In some cases, the DVLA may take up to ten (10) days to take the payment from your account. Even so, you can still use a taxed vehicle during this period.
- All Direct Debit payments from this point on get taken on the first working day of the month that it is due.
Note: The DVLA send emails and correspondence letters about vehicle tax Direct Debit payments to the account holder.
Vehicle Tax Automatic Renewal
Once the vehicle tax Direct Debit is set up it will renew by automatic process when the road tax is due to expire. The DVLA will send an email or a letter informing you when the payment will get taken. Thus, you will not receive a V11 (vehicle tax reminder letter).
Note: Each time the tax gets renewed the vehicle keeper must have a V5C vehicle logbook. Do not tax a vehicle again yourself. Doing so means you will get charged twice.
Vehicle Keeper without a V5C
Vehicle Keeper without a V5CDirect Debits do not renew as planned if DVLA do not have a registered keeper for the vehicle in their records. But, you can give DVLA details of the registered keeper online.
Note: You should contact the DVLA if you do not get an email or a letter from them when the vehicle tax runs out.
No MOT or Vehicle Insurance in Place
The Driver and Vehicle Licensing Agency keep records on vehicle MOT certifications. Thus, they will write to you if the MOT certificate will have expired by the time the vehicle tax is due to renew.
Your vehicle will need to pass an MOT test by the time the current testing certificate runs out. DVLA records get updated by automatic process once it passes. Following that, the car tax will renew on the date that it was due to run out.
That means you will not need to contact the DVLA or get your vehicle taxed again by yourself. But, you will need to tax the vehicle if you fail to get an MOT in time.
Note: The vehicle insurance law is different in Northern Ireland. You must have some insurance in place to renew the road fund tax.
How to Change Address, Email, or Name
You can change the address, email, or the name used on a car tax Direct Debit. But, you must inform the DVLA and you can do it by phone if you:
- Moved your home address.
- Started using a new email address.
- Got married (or divorced) and want to update the details.
- Find a mistake with your name or your address.
Name Changed by Deed Poll
It is not uncommon for people to change names by deed poll in the United Kingdom. If so, you can write a letter to the DVLA telling them:
- Your address and your date of birth.
- The bank or building society name, account number, and sort code used in the Direct Debit set up.
- A copy of the deed poll.
Send all this information to:
DDPT
DVLA
Swansea
SA99 1ZZ
Change Direct Debit Payment Frequency
There are three different options for road tax Direct Debit payment frequency. You get to choose between:
- Paying every month (i.e. 12 installments)
- Paying once every 6 months
- Paying once each year
Note: The DVLA take payments on the first working day of each month. There is no option to change this to a different day of the month.
But, you can change how often the payment gets taken off the road tax Direct Debit. So, you could change from paying every 6 months to a monthly payment instead.
In this case, you would have to cancel the existing Direct Debit and then make sure the vehicle has tax. The next step would be to:
- Get the bank or building society to cancel the Direct Debit. Often, you can do this online or by phone. But, you may need to cancel it by post or in person at the branch.
- You can continue driving the vehicle until the date when the next Direct Debit payment would have been due.
- Get road tax for the vehicle on the date that the next Direct Debit payment was due. Use the eleven (11) digit number on the V5C (vehicle log book).
- Select the preferred vehicle tax Direct Debit option when the vehicle gets taxed. Thus, choose how often you want to pay (monthly, biannual, or once per year).
Changing a Bank Account or the Payment Method
In most cases, you can change the account that the Direct Debit gets taken from. To set this up you can either:
- Contact the new bank or building society and ask them to move the Direct Debits from the old account.
- Change it to another account that you already have or start paying by credit or debit card.
Paying Road Tax with a Debit or Credit Card
- The bank or building society will need to cancel the Direct Debit. You can use the vehicle until the date that the next payment was due.
- You can then tax the vehicle on the date that the next Direct Debit payment was due. Use the eleven (11) digit number on the vehicle registration certificate (log book).
- The final step would be to pay the vehicle tax using a debit card or a credit card.
Switching a Bank or a Building Society Account
Most UK banking institutions can move Direct Debits from an old account to a new one. In this case, you would not need to inform the DVLA or do anything further.
Note: The Current Account Switch Service moves current accounts between banks and building societies. The service is free-to-use and available to individuals, small businesses, charities, and trusts.
Moving the Direct Debit to an Existing Account
Some banks can move a Direct Debit from one account to another if both accounts are with them. You should check with your particular bank. Contact the DVLA if this is not possible or if the two accounts are with different banks.
What to do if a Road Tax Direct Debit Payment Fails
The DVLA will send an email to the Direct Debit account holder if a payment fails. The usual reason for this would be if there are insufficient funds in the account. They will try to take the payment once more within four working days. If the payment does not transfer, the DVLA email will inform you:
- That the Direct Debit failed on two occasions and it got cancelled 'permanently'.
- That the vehicle is no longer taxed.
If the DVLA Cancel a Direct Debit
If the DVLA decide to cancel a road fund Direct Debit you will need the vehicle log book (V5C) to tax it. Following that, you should either:
- Set up a new Direct Debit and ensure there are sufficient funds in the account.
- Use a different payment method for vehicle tax (e.g. a debit card or a Direct Debit from another account).
Note: Under the UK driving laws it is illegal to drive a vehicle on public roads if it does not have road tax.
Failing to Respond to a Cancellation
You must either tax it or SORN a vehicle to inform the DVLA that it is off the road. Failing to do so will result in a fine of £80. You will also need to pay for any time that it was not taxed.
Failing to pay the fine on time has serious consequences. The vehicle could get clamped or crushed. In some cases, your details will also get passed over to a debt collection agency.
Cancelling Vehicle Tax Direct Debit Payments
There are several reasons why the DVLA will cancel a vehicle tax Direct Debit. It will get cancelled if you tell them that the vehicle got:
- Sold or transferred to another person or organisation.
- Taken off the road using a Statutory Off Road Notification (e.g. kept in a garage).
- Scrapped at an ATF (vehicle scrapyard).
- Stolen (apply 'separately' for a tax refund).
- Written off by an insurance company.
- Permanently exported out of the United Kingdom.
It will also get cancelled if the vehicle has road tax exemption. Thus, if you inform the DVLA that:
- A disabled person is using the vehicle.
- It is a historic vehicle (depending if it meets the qualifying year for vehicle tax exemption).
Overpaid Road Tax
DVLA send a road tax refund cheque by automatic process for any full months left on the vehicle tax. They will calculate the refund from the date they get the information from you.
You might end up cancelling a Direct Debit a day or so before a monthly payment is due. In this case, the DVLA may still take the payment. But, they will send a refund within ten (10) working days if you cancel road tax Direct debit.
How to Pay Vehicle Tax by Direct Debit in the United Kingdom
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FAQs
How do I pay my road tax online UK? ›
...
Tax your car, motorcycle or other vehicle using a reference number from:
- a recent reminder (V11) or 'last chance' warning letter from DVLA.
- your vehicle log book (V5C) - it must be in your name.
- the green 'new keeper' slip from a log book if you've just bought it.
Visit the official UP Parivahan Road Tax online payment website and select UP State Vehicle Tax. You will be redirected to the official Vahan Citizen Services page. Here, enter your vehicle registration number, state and RTO and click on 'Proceed'. Click on 'Pay Your Tax' under the 'RC Related Services' dropdown.
How do I set up a Direct Debit? ›Usually, you fill in a form and send it to them, or set it up online or over the phone. They'll let your bank know. You can cancel a Direct Debit at any time by contacting your bank – you can sometimes do this through online banking.
Can I tax my car online UK? ›Pay online
You can tax your vehicle online if you have: the 11 digit reference number from your V5C (if you're the current keeper) the 12 digit reference number from the new keeper slip if you've just bought the car (and do not have a V5C in your name yet)
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. This guide is also available in Welsh (Cymraeg).
Why can't I pay Direct Debit for car tax? ›The Direct Debit account holder will get an email from DVLA if a payment fails because there is not enough money in the account. DVLA will try to take the payment again within 4 working days.
Can I tax my car online anytime? ›You can renew your tax disc or Statutory Off Road Notice (SORN) on the DVLA's Vehicle Licensing website. It only takes a few minutes and can be done 24 hours a day.
How do I pay my motor tax? ›- Online on this website using the PIN we gave you in your renewal notice. ...
- At your local motor tax office, in person or by post, with the renewal form we have sent you.
- If you do not have a renewal form, you can get one at your local motor tax office or by clicking here.
- Step 1: To avail the service,User has to Login on "vahan.parivahan.gov.in/vahaneservice/"
- Step 2: Move your mouse over "Status" and select "Check Pending Transaction".
- Step 3: Enter Registration Number, Chassis Number and Click on Submit.
With many organisations, you can set up Direct Debits over the telephone or online. The organisation will then forward your instructions onto your bank or building society authorising them to allow payments to be collected from your account to them.
Can you set up a Direct Debit yourself? ›
A Direct Debit is an instruction from you to your bank that authorises a company to take an agreed amount of money from your account. You won't be able to create a new Direct Debit yourself. You'll need to contact the company you want to pay and they'll arrange for you to complete a Direct Debit instruction.
How quickly can a Direct Debit be set up? ›Direct Debits usually take up to 10 days to be set up.
Do DVLA notify you when car tax is due? ›Your Direct Debit for vehicle tax will renew automatically when it's due to run out. You'll get an email or letter telling you when your payments will be taken. You will not be sent a vehicle tax reminder letter (V11).
Can DVLA take my car for no tax? ›The DVLA also has the power to clamp your vehicle until the correct amount of tax is paid.
Is there a grace period for car tax UK? ›Are There Any Grace Periods for Paying Car Tax? There are no longer any grace periods for car tax. When paper discs were still in existence, there used to be a five-day grace period to allow the new tax disc to arrive in the post. However, now that the process has moved online, the grace period has been axed.
What date do DVLA take Direct Debit? ›DVLA will take the payments on the first working day of the month. You cannot change it to a different date. To change how often you pay (for example, from every 6 months to monthly), you have to cancel your Direct Debit and then tax your vehicle again.
Does it cost more to pay car tax by Direct Debit? ›The cheapest way is to pay for the whole year upfront. You can also pay by Direct Debit. Except for the single annual payment, you can save a few extra quid this way, though the cheapest is still paying upfront for the whole year.
Can I pay road tax by Instalments online? ›STEPS: select Government –> select LTA -> select Renew Road Tax -> enter Vehicle No., Owner ID, select Renewal Period -> confirm Account Details -> select Pay Now -> select Credit Cards & Diners Club -> input card details -> select Instalment 0% Interest & Repayment Period -> select OK -> select Submit -> input OTP -> ...
Why has DVLA stopped my Direct Debit? ›DVLA will cancel your Direct Debit when you tell them your vehicle's been: sold or transferred to someone else. taken off the road, for example, you're keeping it in a garage - this is called a Statutory Off Road Notification ( SORN ) written off by your insurance company.
Why is my Direct Debit not working? ›The most common reasons are insufficient funds or where a payer has cancelled their instruction. Other reasons include: The account has been closed, transferred or is not recognised. There is a dispute from the payer, such as the amount or due date.
What happens if I pay my car tax late UK? ›
Motorists who do not tax their vehicle can face financial penalties, court action and the risk of having their vehicles clamped or impounded. While more than 98% of vehicles are correctly taxed, it's right that DVLA takes action against those who continue to break the law and evade taxing their vehicle.
How long can I drive my car without tax? ›Driving without road tax is an escalating penalty. The long and short of it is this: if you get a warning letter, pay it then, and within the reduction period of 33 days if you can. Once you get past that point, it can get much, much more expensive to deal with, and honestly, when is that worth it?
How late can I tax my car? ›You can tax your vehicle up to 2 months before it expires if you're going to be away from home (for example on holiday) when your current tax runs out. This guide is also available in Welsh (Cymraeg).
How long does it take to update car tax online? ›Find out if a vehicle has up-to-date vehicle tax or has been registered as off the road ( SORN ). It can take up to 5 working days for the records to update. You'll need the vehicle's registration number (number plate). This service is also available in Welsh (Cymraeg).
How do I know when my motor tax is due? ›On the national car test website you can check the NCT due date of the car by going to the NCT website and following the 4-step process. Search, Booking, Payment & Complete. Enter the vehicle registration number into the display box and you will find out the due date of your NCT as well as your expiry date.
How do I pay my motor tax by phone? ›Telephone: 01 222 8000 (9.00 a.m. to 5.00 p.m. – Monday to Friday).
How do I pay DVLA by check? ›Send a cheque or postal order payable to DVLA . Write the registration number of the vehicle on the back of it. Damaged or altered cheques will not be accepted.
How do I re verify my payment in Parivahan? ›- Visit https://sarathi.parivahan.gov.in/
- Select concerned state.
- Click on "Fee Payments” from the "Fee Payments" menu.
- Click on "EPayment" menu and Select Service.
- Step 1: To avail the Services User has to open the URL: "vahan.parivahan.gov.in/vahaneservice/". ...
- Step 2: Click on "Register" to complete the registration process.
- Step 3: Enter the Full name, Email id, Mobile No, State, Captcha and click on the "Register" button.
mParivahan is designed to perform the all-India RTO vehicle registration number search.
Is Direct Debit online payment? ›
A Direct Debit is an instruction from you to your bank, authorising someone to collect payments from your account when they are due. You give this authorisation by completing a Direct Debit Mandate form – this can be a paper form or a web page that you complete online.
How much does it cost to set up a Direct Debit? ›'There are no scheme charges made for setting up a new direct debit instruction other than the normal, ongoing usage charges made by the sponsoring bank for transactions. ' So while it doesn't cost your gym £40 to set up the direct debit there are ongoing costs which are associated with setting up payment schemes.
How do I set up a Direct Debit on my phone? ›To set up Direct Debit, log on to the iD Mobile app or My Account online, go to the 'My Billing' page, and select 'Manage my Direct Debit'. Then simply follow the instructions on the screen.
What are the disadvantages of setting up a Direct Debit? ›Disadvantages of Direct Debit
One major disadvantage of Direct Debit is the time it takes to get paid for the first time. Payments work in set cycles, so you might have to wait to receive the initial payment. Failure of payment is also a possible disadvantage.
Direct Debits cannot, however, be set up against savings accounts, such as fixed term savings accounts and ISAs, or mortgage accounts. They also cannot be set up from a credit card. Instead, regular credit card payments can be made using a 'Continuous Payment Authority' (CPA).
Can someone set up a Direct Debit without my permission? ›As part of the set-up process, the business should get your permission ('standing authority') to take payments as and when they're due. You can cancel a CPA by contacting the business receiving the payments or the card provider.
How long does Direct Debit take UK? ›Direct Debit payments are processed using the Bacs three day cycle, after which a payment can only be considered successful if no failure report is produced after a set number of days.
How does Direct Debit payment work? ›Simply, a Direct Debit is an instruction from you to your bank or building society. It authorises the organisation you want to pay to collect varying amounts from your account – but only if you've been given advance notice of the amounts and dates of collection.
Can someone set up a Direct Debit with my bank details? ›Unfortunately, someone with your details may be able to create a Direct Debit agreement without your permission. However, most banks now offer more levels of security that may involve logging into your banking app from your phone. Someone without your login details would not be able to do that.
Will DVLA email me about car tax? ›The DVLA themselves have advised that they don't send emails or text messages about vehicle tax refunds, and has said that they would never message you in this way to confirm personal details or payment information.
How long does it take for tax To update on DVLA? ›
It can sometimes take up to 5 days for the tax expiry date to be updated after you tax a vehicle.
Can I drive my car the day my tax is due? ›The first thing to know is that it's illegal to drive your car unless it's taxed, so forgetting to do it is a criminal offence – even if you've genuinely just forgotten to.
Why would a car be clamped by DVLA? ›The police, the local council or the DVLA can clamp and tow away cars or other vehicles parked illegally on roads or public land. The DVLA can act when it has the lawful authority to do so if a car is untaxed - unless it's on your own property.
What happens when you report an untaxed vehicle to DVLA? ›What will happen to the vehicle? Don't expect it to be instantly scooped up and taken away, in many cases the vehicle will be clamped and a notice attached to it. If nothing happens after a set period of time, it's likely the vehicle will be removed and possibly scrapped.
How long does it take the DVLA to remove an untaxed vehicle? ›We aim to remove all nuisance vehicles within three working days of them being reported and inspected.
What happens if you miss a car payment UK? ›If you continue to miss payments they may issue a default notice and take further action to collect the debt and to recover the car. They may use a debt collection agency or apply for a county court judgment (CCJ). Find out more about the debt collection process.
How old does a car have to be in the UK to be tax exempt? ›You can apply to stop paying for vehicle tax from 1 April 2022 if your vehicle was built before 1 January 1982. You must tax your vehicle even if you do not have to pay. If you do not know when your vehicle was built, but it was first registered before 8 January 1982, you can still apply to stop paying vehicle tax.
Can I tax my car without the v5? ›If you do not have a V5C or new keeper slip
If you're the new keeper, you cannot tax your vehicle without a new keeper slip. You'll need to apply for a new V5C by post. You can also get the form from the Post Office.
Driving without road tax is an escalating penalty. The long and short of it is this: if you get a warning letter, pay it then, and within the reduction period of 33 days if you can.
How do I pay my road tax with a credit card? ›...
You can pay your road tax in the following ways:
- Online on LTA's OneMotoring website.
- At AXS machines.
- At SAM kiosks or via SAM online.
- By GIRO.
- In person at Road Tax Collection Centres.
Is there a grace period for road tax UK? ›
Are There Any Grace Periods for Paying Car Tax? There are no longer any grace periods for car tax. When paper discs were still in existence, there used to be a five-day grace period to allow the new tax disc to arrive in the post. However, now that the process has moved online, the grace period has been axed.
How much is road tax in the UK? ›For most car buyers that means road tax now ranges from £120 (for cars producing 76-90g/km) to £585 (151-170g/km). Low polluting cars, meanwhile – cars that produce 0-75g/km of CO2 – pay the same tax they did in 2021, ranging from zero to £25.
What happens if I forgot to tax my vehicle? ›Motorists who do not tax their vehicle can face financial penalties, court action and the risk of having their vehicles clamped or impounded. While more than 98% of vehicles are correctly taxed, it's right that DVLA takes action against those who continue to break the law and evade taxing their vehicle.
Can the police seize your car for no tax? ›Under the Police Reform Act 2002, uniformed police have the powers to seize your vehicle if it's being used in a manner causing alarm, distress, or annoyance. The DVLA can seize cars that are not taxed, and have devolved these powers to many police forces and local authorities.
How do I avoid paying car tax UK? ›You can apply to stop paying for vehicle tax from 1 April 2022 if your vehicle was built before 1 January 1982. You must tax your vehicle even if you do not have to pay. If you do not know when your vehicle was built, but it was first registered before 8 January 1982, you can still apply to stop paying vehicle tax.
Can you pay DVLA by credit card? ›Pay with a debit or credit card
Use the 11 digit number on your vehicle log book (V5C). Pay the tax for your vehicle using a debit or credit card.
The DVLA does not charge a credit card levy on any other services we provide. Please note third parties acting on behalf of DVLA may apply card charges.
Can you pay tax bill by credit card UK? ›There's a fee if you pay by corporate credit card or corporate debit card. The fee is not refundable. There's no fee if you pay by personal debit card.
Do the DVLA let you know when your car tax is due? ›You'll get an email or letter telling you when your payments will be taken. You will not be sent a vehicle tax reminder letter (V11). Do not tax your vehicle again.
How long does it take for car tax to show online? ›It can sometimes take up to 5 days for the tax expiry date to be updated after you tax a vehicle.
Can I tax my car a day late? ›
Previously, when paper discs were still in use there was a five-day grace period to give the new tax disc time to arrive in the post. As that process has been moved online, there is no longer any grace period. And there you have it, our guide to vehicle tax and insurance.
Can you pay road tax monthly UK? ›Choose the Direct Debit option when you tax your vehicle. Then choose how often you want to pay - either monthly, every 6 months or every year.
How much is UK car tax 2022? ›Annual Vehicle Excise Duty
The annual flat rate of road tax for 2022 was set at £165 for petrol and diesel cars registered from April 2017. The annual flat rate of road tax for hybrid vehicles, including mild hybrid and plug-in hybrids (PHEV), is currently £155.
“Vehicle tax”, “car tax” and “van tax” are not the same thing as “road tax”. The government funds road upkeep largely out of general taxation. That means that all road users pay “road tax” – car drivers, van drivers, motorcyclists, cyclists, and even pedestrians. So what is vehicle tax?