Direct Debit set to change the way we pay for Vehicle Excise Duty
New research released today suggests almost half of the UK’s motorists could switch to Direct Debit to spread the cost of Vehicle Excise Duty (VED) following the introduction of the new payment option.
Confirmed by Chancellor George Osborne in March’s Budget, from today, October 1, 2014 Direct Debit will be offered as a payment choice (for customers who need to tax their vehicle from 1 November onwards) for the very first time – along with the option to pay monthly – while the paper tax disc will be consigned to the history books.
And figures announced by Bacs, the people behind Direct Debit in the UK, show that 43% of motorists are likely to take advantage of the new payment method while over half (52%) agree that paying this way would make it easier to spread the cost over the course of a year.
With 59% also admitting that paying by Direct Debit would offer peace of mind, as there would be no worries about forgetting to make a payment, and over two-thirds (67%) agreeing that it would save them having to manually renew, it looks likely that Direct Debit will become the payment method of choice for many.
Bacs’ Graham Callaghan, said: “Millions of people in the UK already choose to pay their bills and regular outgoings by Direct Debit and, from October, this method will also be available to pay for Vehicle Excise Duty. This will offer far greater flexibility for motorists who will be able to choose between setting-up a monthly, six-monthly or annual Direct Debit, offering more choice than ever before.
“Our research clearly indicates that a large number of drivers are likely to take advantage of using Direct Debit and this shift could result in millions of people changing the way they pay for their Vehicle Excise Duty.”
To view a short vox pop video on what people think about monthly payments for car tax click here: http://youtu.be/eo6RZu5nPdw
