The Government have announced they are looking into introducing direct debit payments for vehicle tax to ease the financial problems that running a vehicle can bring.
It was recently reported that it costs motorists around £7,000 a year to run a vehicle due to the cost of fuel which continues to rise, insurance premiums and general wear and tear can all add to the expense. A direct debit option would spread the costs for motorists.
Currently motorists can only buy a 6 month or 12 month tax disc paying by cash, credit or debit card. Introducing a direct debit option may ease motorist’s worries when it is time to tax their vehicle.
Plans for this are in the early stages and no specific details have been released yet if the plans will go ahead or not. Motoring organisations are welcoming the idea of a new payment option making it less of a worry for people when it is time to tax their vehicle.
A latest poll revealed that 26.3% of motorists buy a 6 month tax disc. 64% of those asked admitted the main reason for buying a 6 month disc was because they couldn’t afford to buy a full year’s tax.
The Budget report states: “The government will consider whether to reform Vehicle Excess Duty over the medium term to ensure that all motorists continue to make a fair contribution to the sustainability of the public finances, and to reflect continuing improvements in vehicle fuel efficiency.
“In addition, the government aims to develop a direct debit system to allow motorists to spread their VED payments.
“The government will seek the views of motoring groups on these measures.”
© Copyright Autonet Insurance
By Amanda Bainbridge