Renewing road tax discs
Road tax is one of those expenses that well all begrudge because you generally don’t see anything for your money besides poorly timed and badly managed roadworks.
Paying for your tax all in one lump sum will save you a few pounds over paying in 6 month periods but this is not the only reason you should pay yearly. One half of your 6 months will also incur the tax inflation of that year and with the new ‘green’ outlook – this looks set to continue.
Last year my tax was set at 104.50 for 6 months or £190 for the year. So paying in two installments makes it £209 a year (£19 extra) which seems about fair given the extra 6 months to pay the extra.
But factor in the change in rates from the existing ones to the new £112.75 for 6 months and £205 for the year and you are looking at 217.25 for the year (27.25 extra) with the extra inflation added to the final 6 months.
This may not seem like a lot of money but in reality it will almost cover the cost of a basic MOT. If it is a case of you needing the extra 6 months to save up the money thenit is unavoidable but otherwise you are just wasting money by not paying yearly. If you swap car in the time you can transfer it over and if you want to cancel it you can at any time.
