Motorists have been warned that missing vehicle tax payments could see them hit with an £80 fine and their vehicle clamped.
You must tax your vehicle to use it on the roads and can pay as a one-off for the year or through a Direct Debit that takes the money out in smaller chunks.
Some drivers who are paying monthly appear to be missing their payment dates and may not even realise. The RAC says there has been an increase in drivers having their vehicle tax Direct Debits cancelled by DVLA after payments couldn't be taken due to a lack of funds.
The missed payment could then lead to an £80 fine - or your car getting clamped or crushed.
When there is a missed payment or an unpaid Direct Debit, the DVLA will contact the vehicle keeper to inform them it will attempt a further Direct Debit on a specified date. If this subsequently fails, the mandate is cancelled and the owner is advised that the vehicle is not taxed.
Failure to tax it another way will lead to the DVLA taking enforcement action which could include a fine of £80 or your car being clamped and even crushed.
There has been an 'worrying' increase of vehicle tax Direct Debit cancellations after failed payments due to a lack of funds, according to the RAC which analysed figures following a Freedom of Information request.
So far this financial year, drivers overwhelmingly prefer to pay their vehicle tax monthly by Direct Debit, with 86 percent choosing to use this method. Meanwhile, only one in 10 pay annually, with less than 4 percent paying every six months.
Some 950,377 drivers had their Direct Debits cancelled in the financial year 2021-22 - a nine percent rise compared to the year prior according to the motoring experts.
RAC head of roads policy Nicholas Lyes said: "Spreading payments helps people budget when paying vehicle tax, so it’s very worrying that some are now struggling to do this."
He added: "It's important to realise that two consecutive failed Direct Debits from one bank account could lead to the DVLA removing that as a payment option.
"If drivers are struggling with payments, they should get in touch with the DVLA, particularly if the agency has already contacted them.
"Ignoring the problem carries an £80 fine, along back the outstanding tax. And those who don’t do this risk their vehicles being clamped or crushed.
"While spreading vehicle tax costs can be appealing from a budgeting point of view, drivers should also be aware they will end up paying more if they choose monthly or six-monthly payments than they would if they paid in one go annually."
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