DVLA warns two types of driver face '5 per cent' surcharge in car tax

James Rodger
·2-min read
Those paying monthly or every six months face a 5 per cent surcharge as new VED rates and bands begin under the Labour Party government from April.
-Credit: (Image: Reach Publishing Services Limited)


The DVLA has warned two types of driver face a "surcharge" on car tax and Vehicle Excise Duty. Those paying monthly or every six months face a 5 per cent surcharge as new VED rates and bands begin under the Labour Party government from April.

"When you set up a Direct Debit for vehicle tax, it will renew automatically when it’s due to run out – so there's no need to worry. Set up your Direct Debit here: http://gov.uk/dvla/tax #TaxItDontRiskIt," the DVLA has warned on Twitter/X.

The amount you pay depends on how often you want to make a payment. There’s a 5% surcharge if you pay monthly or every 6 months. There’s no surcharge if you pay yearly. You need your address and date of birth and your bank or building society name, account number and sort code.

READ MORE: UK households face £2,500 bill which 83 per cent will 'by law' have to pay

READ MORE: I visited a Birmingham Wetherspoons for Christmas dinner and someone else ate it

READ MORE Drivers who don't press three dashboard buttons in specific order face £2,500 fine

You cannot set up a Direct Debit for an account that needs 2 signatures. You’ll get a confirmation by email or post that your Direct Debit has been set up. The first payment will not be taken until the vehicle tax has started. It can take up to 10 days. You can still use the vehicle before the payment is taken.

All the following payments will be taken on the first working day of the month that the Direct Debit is due. The DVLA explained: "Your Direct Debit for vehicle tax will renew automatically when it’s due to run out. You’ll get an email or letter telling you when your payments will be taken.

"You will not be sent a vehicle tax reminder letter (V11). Do not tax your vehicle again. If you do, you’ll be charged twice. The vehicle keeper must have a vehicle logbook (V5C) before the vehicle tax is renewed. Your Direct Debit will not automatically renew if there’s no vehicle keeper in DVLA’s records.

"If you do not get an email or letter when your vehicle tax runs out, you should contact DVLA."

Latest stories

  • HMRC issues warning for all savers about £10,000 limit

    A taxpayer contacted the authority to ask if they would need to fill in a form for going over the threshold for dividends or savings and interest

  • Warren Buffett just sold 19% of this top growth stock! Should I be worried?

    Over the past few quarters, Warren Buffett has been dumping stocks, including one impressive growth stock owned by this Fool. The post Warren Buffett just sold 19% of this top growth stock! Should I be worried? appeared first on The Motley Fool UK.

  • 40,730 shares of this FTSE stock unlock a £500 monthly second income

    This FTSE stock’s been tumbling for years, but dividends have stayed in place, opening the door to a 10.4%-yielding second income stream. The post 40,730 shares of this FTSE stock unlock a £500 monthly second income appeared first on The Motley Fool UK.

  • Can the filthy cheap BP share price rocket in 2025? Here’s what the experts say

    Harvey Jones took advantage of a tough year for the BP share price to add the stock to his portfolio at a reduced price. Is the sun set to shine on the FTSE 100 oil giant? The post Can the filthy cheap BP share price rocket in 2025? Here’s what the experts say appeared first on The Motley Fool UK.

  • Investors dump French debt as political crisis grows

    Investors are dumping French debt in favour of Spanish and even Italian bonds as the deepening political crisis in Paris scares off money managers.

  • London hit by cheap takeover ‘disease’ again

    London’s stock market is suffering from a “disease” that makes it more attractive to be private, a senior fund manager has warned.

  • This under-the-radar FTSE stock is set to print money in 2025

    FTSE 100 and FTSE 250 stocks get a lot of attention. But looking beyond the familiar names can potentially bring big rewards for investors. The post This under-the-radar FTSE stock is set to print money in 2025 appeared first on The Motley Fool UK.

  • 2 top FTSE 100 shares to consider for a Stocks and Shares ISA in 2025

    Our writer picks a pair of Footsie shares from his Stocks and Shares ISA that he reckons look attractive heading into the New Year. The post 2 top FTSE 100 shares to consider for a Stocks and Shares ISA in 2025 appeared first on The Motley Fool UK.

  • Is this penny stock worth considering at 69p?

    This penny stock's up 140% in the last five years, but is it still worth considering based on its long-term growth potential? Zaven Boyrazian investigates. The post Is this penny stock worth considering at 69p? appeared first on The Motley Fool UK.

  • African banks set up shop in China as Beijing pushes for yuan to eclipse US dollar

    Africa's top lenders are opening branches in major Chinese cities in a race to tap into growing trade ties between China and Africa amid Beijing's push for yuan-based transactions. This is despite threats from the US, where president-elect Donald Trump has said he will impose 100 per cent tariffs on Brics countries that pursue de-dollarisation. In October, The Access Bank UK, a subsidiary of Nigeria's Access Bank, opened a Hong Kong branch to "foster stronger economic ties between Asia and Afric

  • Why Is HSBC Holdings plc (HSBC) Among the Best Bank Stocks to Invest In Now?

    We recently compiled a list of the 10 Best Bank Stocks With High Dividends. In this article, we are going to take a look at where HSBC Holdings plc (NYSE:HSBC) stands against the other bank stocks. In 2023, the US banking industry took a major hit, as Silicon Valley Bank collapsed, followed by the downfall of […]

  • The PayPal Mafia includes tech titans like Elon Musk, Peter Thiel, and Reid Hoffman. Here's where its members are now.

    PayPal mafia members Elon Musk, Peter Thiel, and Reid Hoffman went from working at the startup in the early 2000s to running their own ventures.

  • Saudi Arabia cuts oil prices after OPEC+ delays reviving output

    (Bloomberg) -- Saudi Arabia is cutting oil prices for buyers in Asia by more than expected after OPEC+ further delayed an output revival, underscoring how the outlook for the market remains weak.Most Read from BloombergA Chicago Skyscraper Cements the Legacy of a Visionary Postmodern ArchitectNYC’s Run-Down Bus Terminal Gets Approval for $10 Billion RevampKansas City Looks Back on its Long, Costly Ride With MicrotransitState oil producer Saudi Aramco will sell its main Arab Light crude grade at

  • Has this 6% yielding penny share fallen too far?

    After a testy few days for a penny share our writer holds, he revisits the investment case and weighs management claims that the business is doing well. The post Has this 6% yielding penny share fallen too far? appeared first on The Motley Fool UK.

  • Close to £6, can the Rolls-Royce share price still offer any value?

    Having traded for under 40p in 2020, the Rolls-Royce share price this week sat closer to £6. Does our writer think it can keep gaining altitude? The post Close to £6, can the Rolls-Royce share price still offer any value? appeared first on The Motley Fool UK.

  • I aim for a million buying just 10 or so shares!

    Rather than investing in dozens of different companies, our writer is focussing on finding a few great ones to help him aim for a million. The post I aim for a million buying just 10 or so shares! appeared first on The Motley Fool UK.

  • UnitedHealth Shares Plunge After CEO’s Murder Prompts Fury at Health Honchos

    Shares in the parent company of slain UnitedHealthcare CEO Brian Thompson have plummeted, as his murder prompted renewed scrutiny of the industry and outrage over the state of US healthcare. UnitedHealth Group’s stock fell 5 percent on Friday alone, bringing its weekly loss to 10 percent. That wiped roughly $56 billion from the company’s market capitalization. After-hours trading continued to dip, dropping 5 percent on Sunday after a video leaked UnitedHealth CEO Andrew Witty, Thompson’s boss, s

  • Which Warren Buffett stocks should investors consider buying in December?

    Warren Buffett has a lot of high-quality stocks in his portfolio, so should investors follow in his footsteps, or could that be a critical error? The post Which Warren Buffett stocks should investors consider buying in December? appeared first on The Motley Fool UK.

  • 10,428 shares of this UK stock generates £1,000 passive income

    Taylor Wimpey shares currently have an impressive 7.3% yield that's capable of generating a lucrative passive income. But is this sustainable? The post 10,428 shares of this UK stock generates £1,000 passive income appeared first on The Motley Fool UK.

  • Here are 2 potentially top UK shares to consider buying before 2025

    More double-digit growth from UK shares could be just around the corner, especially for these two cheap-looking, high-quality stocks. The post Here are 2 potentially top UK shares to consider buying before 2025 appeared first on The Motley Fool UK.