Driver and Vehicle Licensing Agency
DPP & FOI Team – C2/W
Longview Road
Morriston
Swansea
James
SA6 7JL
Email us at:
xxx@xxxx.xxx.xx
Website:
www.gov.uk/browse/driving
Your Ref:
Our Ref:
FOIR9094
Date:
4 June 2021
Dear James
Freedom of Information Request
Thank you for your email of 9 May requesting information under the terms of the
Freedom of Information Act 2000 (FOIA).
You asked:
You have the following charging schemes for car tax, example being
143g/km:
6 months £93.50
12 months £170
Or with Direct Debit:
Monthly £178.50 (£14.88 pcm)
6 months £89.25
12 months £170
Questions:
1) Why do you penalise those that can't afford to pay for a whole 12
months
2) Utility companies are happy with a monthly direct debit to provide
the lowest cost, why does the government not do this- what is the
policy?
We do not consider that your questions are requests for recorded information under
the terms of the FOIA. However, it may be helpful if I explain that the direct debit
scheme allows motorists to spread their vehicle tax costs and have the convenience
of having their vehicle tax renewed automatically each year.
To ensure we can offer this convenience and limit the impact to the public finances, a
surcharge is levied on monthly and 6 monthly direct debit payments. No surcharge is
applied to vehicle tax which is paid in full on an annual basis, whether via direct debit
or via other channels.
I should clarify that the DVLA administers and collects vehicle tax on behalf of HM
Treasury. All decisions on vehicle tax, whether structure, rates or alternatives are a
matter for the Chancellor of the Exchequer and are not set by the DVLA.
Further details on how to contact HM Treasury can be found o
n GOV.UK
3) what percentage is in each financial payment category?
On 13 May you clarified question 3 as follows:
What percentage of people pay 6 months £93.50
And what % pay 12 months £170 Etc and for the below three categories
Or with Direct Debit:
Monthly £178.50 (£14.88 pcm)
6 months £89.25
12 months £170
We have taken your question as referring to payments made by card and direct debit.
The information held by the DVLA within the scope of your request is provided below.
While you have not asked for a specific time-period, the information provided relates
to the financial year 2020-2021.
Of the customers who paid for their vehicle tax by debit or credit card, the percentage
who paid for a 6 and 12 month licence is as follows:
6 months - 20%
12 months - 80%
Of the customers who paid for their vehicle tax, by direct debit the percentage who
paid monthly, 6 and 12 monthly is as follows:
12 monthly payments - 85%
6 months single payment - 5%
12 months single payment -10%
It may also be helpful to explain that in addition to these payment methods, customers
can still pay for their vehicle tax as a single 6 month or 12 month payment at a Post
Office that provides this service.
The information which follows concerns the procedures for making any complaint
you might have about the reply. Please quote the reference number of this letter in
any future communications about it.
Yours sincerely
pp Robert Toft
Head of Data Protection Policy & Freedom of Information Team
Your right to complain to DVLA and the Information Commissioner
If you are not happy with the reply to your request, you can ask DVLA to re-consider
the response you received by writing (within two calendar months of receiving this
response) to either
xxx@xxxx.xxx.xx or DVLA Freedom of Information Team, DPP/FOI,
C2W, DVLA, Swansea SA6 7JL.
DVLA will acknowledge and consider your request, re-visiting the response provided.
This is known as an Internal Review and will be considered by a staff member not
involved with the original reply.
If you disagree with the outcome of the Internal Review, you have the option to
complain to the Information Commissioner’s Office (ICO). The ICO’s offices are
currently all closed, but you can contact them on this link -
http://ow.ly/oWiW50yU9Xb