Monthly road tax

[PDJ]

In the past I have always taxed my cars for 12 or sometimes 6 months

The Z4M is almost ready to go on the road so due to cost and the possibility of wanting to drive it for 7 or 8 months I am planning to tax it monthly

So question is is it ok to pay monthly and cancel after 7 or 8 months to suit my situation and or the weather

Is there any great cost penalty from DVLA for doing this

 

[Jl-c]

The amount you pay depends on how often you want to make a payment. There’s a 5% surcharge if you pay:

monthly
every 6 months
There’s no surcharge if you pay yearly.

https://www.gov.uk/vehicle-tax-direct-debit

 

[enuff_zed]

So in fact, it is easier to pay the yearly amount then SORN it, at which point you will be refunded any unused complete months.
Initial outlay is higher, but overall you save money.

 

[Lance]

OP, yes, you can pay monthly and SORN it at anytime and the DDs will cease, until re-taxed.

But as advised above, you do pay a little more for paying monthly.

From the .GOV site

How much it costs
The amount you pay depends on how often you want to make a payment. There’s a 5% surcharge if you pay:

monthly
every 6 months
There’s no surcharge if you pay yearly.

 

[ronk]

So in fact, it is easier to pay the yearly amount then SORN it, at which point you will be refunded any unused complete months.
Initial outlay is higher, but overall you save money.

I do that
When I get the cheque back ( they do I very promptly) I just bung into my car slush fund account!

 

[enuff_zed]

So in fact, it is easier to pay the yearly amount then SORN it, at which point you will be refunded any unused complete months.
Initial outlay is higher, but overall you save money.

I do that
When I get the cheque back ( they do I very promptly) I just bung into my car slush fund account!

I think if you pay by card they refund it straight to that too

 

[Mr Tidy]

I always do a year by debit card as it's the cheapest option, and the last 2 times I've sold a car I've had the refund cheque within a week or so.

I would have thought the same should happen when you SORN a car, although I've never done that.

 

[ronk]

I always do a year by debit card as it's the cheapest option, and the last 2 times I've sold a car I've had the refund cheque within a week or so.

I would have thought the same should happen when you SORN a car, although I've never done that.

Yes - Sorn online and the money comes back PDQ - Strange for a Govt Dept

 

[Mr Tidy]

Yes - Sorn online and the money comes back PDQ - Strange for a Govt Dept

Maybe they aren't that busy now they don't need to issue discs any more!

 

[ronk]

Yes - Sorn online and the money comes back PDQ - Strange for a Govt Dept

Maybe they aren't that busy now they don't need to issue discs any more!

But they have a lot of non payers to catch maybe.
I always thought the penalty was auto generated?

 

[srhutch]

So in fact, it is easier to pay the yearly amount then SORN it, at which point you will be refunded any unused complete months.
Initial outlay is higher, but overall you save money.

I do that
When I get the cheque back ( they do I very promptly) I just bung into my car slush fund account!

I think if you pay by card they refund it straight to that too

None, not Creditcard always get a cheque back.

 

[ronk]

I think they charge a premium on a credit Card?

 

[enuff_zed]

I do that
When I get the cheque back ( they do I very promptly) I just bung into my car slush fund account!

I think if you pay by card they refund it straight to that too

None, not Creditcard always get a cheque back.

OK, thanks, I was obviously wrong on that

 

[Tinker15]

I paid monthly by standing order. When I put the car on SORN they understandably took payment for the following month which was returned to my bank account within a week.

 

[mjennings23]

I think they charge a premium on a credit Card?

No businesses are allowed to charge for card transactions in the UK any more, some may choose to not accept credit cards but no charges can be passed onto the consumer.

 

[srhutch]

I think they charge a premium on a credit Card?

Nope, not allowed to, law that was introduced to stop credit card surcharges a couple of years ago.

Not the case if using a business credit card though for some reason. £2.50 surcharge.

 

[ronk]

Yes - Ive just read that. Thanks for the heads up -Jan 2018 it says
When mine eventually comes back out of hibernation after this virus thing, I will use my credit card and get my spending points. It would be rude not to

 

[srhutch]

I normally put on a zero percent credit card with no fees, then get refund when I sorn.