Why Won’t The DVLA Let Me Pay Road Tax On A Monthly Basis?

If you are one of the 39 million registered vehicle owners in the UK and are wondering why the DVLA won’t let you pay your Road Tax through monthly payments, you will find detailed guidance on the subject in the following article. Here we will be discussing the possible reasons why monthly payments for Road Tax can be rejected by the DVLA as well as explore alternative payment options if you are unable to convince the DVLA to reverse their decision.

Why Won’t The DVLA Let Me Pay Road Tax On A Monthly Basis?

The main reason why the DVLA won’t let a vehicle owner pay their Road Tax through monthly payments is due to the fact that they have been using the direct debit facility through their bank account and there are insufficient funds for these payments.

When you register yourself for direct debit payments for your Road Tax, the bank automatically deducts the indicated amount from your bank account and pays forward on your behalf. If you do not have sufficient funds in your account, your payment will be rejected and the DVLA will be informed of a missed payment.

The DVLA will inform you of a missed payment and make another attempt to retrieve the payment in a few days. However, if the funds in your bank account are still not sufficient to make the payment for your monthly Road Tax bill, you will be in debt. 

It is possible that the DVLA will revoke your right to make monthly payments for Road Tax in such a case and ask you to pay on a six-monthly or annual basis.

Another reason why the DVLA won’t allow vehicle owners to pay their Road Tax through monthly payments is if they’ve previously missed some payments or have not paid their Road Tax on time. 

While there are fines imposed for not paying Road Tax on time, disallowing future monthly payments in such cases can be a penalty placed for previous Road Tax debt.

However, if neither of the situations applies to you, it is possible that there has been an error in your bank’s funds transfer system or the DVLA’s own online payment retrieval system due to which your monthly payment for Road Tax has not gone through. You should call the DVLA at 0300 790 6802 and confirm the reason for a monthly payment for Road Tax not being accepted.

What Should I Do If The DVLA Does Not Let Me Pay Road Tax On A Monthly Basis? 

If the DVLA does not let you pay Road Tax for your vehicle tax through monthly payments, you should first try talking to them and appeal for permission to make monthly payments. If that does not work, you would need to seek alternative payment arrangements for your vehicle’s Road Tax.

This means that if monthly payments are not an option, you can consider paying your Road Tax in one lump sum for the year or two lump sum payments; twice a year.

If you are having difficulty paying your Road Tax, you can seek assistance from organisations such as the Citizens Advice Bureau or debt charities. They can provide advice and support on managing your finances and resolving any issues with the DVLA.

How Can I Keep My Road Tax Payments Updated?

There are a few ways you can make sure your Road Tax payments are updated:

• You can check the status of your Road Tax payments through the DVLA Vehicle Enquiry system. Simply enter your vehicle’s registration number and the 11-digit reference number from your reminder letter.
• It’s important to keep track of when your Road Tax payment is due. You can find the due date on your vehicle’s registration document (V5C) or on the reminder letter sent by the DVLA.
• Setting up a direct debit is a convenient way to ensure your Road Tax payments are always up to date. You can choose to pay in one or two instalments, and the payment will be automatically deducted from your bank account.
• If you choose to pay for 6 or 12 months at a time, you will need to renew your Road Tax before it expires. Make sure to renew on time to avoid any penalties or fines.
• If you sell your vehicle or change your address, you will need to notify the DVLA. This will ensure that you receive any reminder letters or notifications about your Road Tax payments.

Conclusion:

The above discussion helps to highlight the common reasons why the DVLA won’t allow a vehicle owner to pay their Road Tax through monthly payments. It is advisable in such cases to communicate with the authorities and try to convince them to allow monthly payments as they are generally easier to budget. However, if one is unable to do so, alternative payment options will need to be considered.

References:

Vehicle tax Direct Debit payments: If a Direct Debit payment fails – GOV.UK

What to do if a Direct Debit payment fails

Taxing your vehicle doesn’t have to be taxing… – Inside DVLA