Chris Thomas Posted February 22, 2023 Share Posted February 22, 2023 (edited) On 2/11/2023 at 11:26 AM, Manx Bean said: I’m just waiting to see how long it takes for the penny drop with the Minister that introducing 6 months tax for any value will seriously cock up the department’s revenue stream, which will upset Treasury. Introducing monthly direct debits will just cause bedlam. So 6 months..ok, so how many people will pay for 6 months, let that expire, wait for 4-6 weeks then do another 6 months? Its an easy way to mitigate the £6 surcharge. Boom. Direct debits..pay one month, get a disc then cancel. Get a letter, wait 4 weeks, pay one more month..in the meantime the minute you are in arrears you also have vehicles on the road illegally. Let’s face facts. As I understand it we have a single mobile ANPR camera on this island..and I can’t recall seeing it out anywhere for months. I should add I don’t for one minute condone avoidance of paying car tax, but many won’t be so morally inclined, especially when for many money is tight. Thoughts @Chris Thomas How much 6 month vehicle duty costs depends on level and type of take up. It might well reduce vehicle duty revenue by many hundreds of thousands as you suggest, probably more than the annual cost to duty of increasing registration of lower emissions, smaller and electric vehicles. Direct debit systems currently operated in Treasury are also relatively expensive to run. Edited February 22, 2023 by Chris Thomas 1 Quote Link to comment Share on other sites More sharing options...
Chris Thomas Posted February 22, 2023 Share Posted February 22, 2023 2 minutes ago, offshoremanxman said: Last time I checked it wasn’t legal to charge people more to pay by credit/installments than it would be to pay by cash or any other means. The card providers certainly can’t do that anymore in the IOM. Also how can Treasury’s DD system be any more expensive to operate than anyone else’s? Especially as you seem to be only allowing people to pay over 6 months as if you collect over 6 installments you have to be registered under the consumer credit act like everyone else which they don’t seem to want to do. Direct debits are not in place although there is an intention to introduce them. You are right that they are a credit arrangement. It costs everyone staff and other resources to administer direct debit systems. 1 Quote Link to comment Share on other sites More sharing options...
offshoremanxman Posted February 22, 2023 Share Posted February 22, 2023 1 minute ago, Chris Thomas said: Direct debits are not in place although there is an intention to introduce them. You are right that they are a credit arrangement. It costs everyone staff and other resources to administer direct debit systems. Thanks. But it looks like you have deliberately only allowed 6 installments so as not to be caught by the CCA so presumably it should be cheaper to collect with no additional regulatory costs or requirements unlike most other installment providers? 1 1 Quote Link to comment Share on other sites More sharing options...
Roger Mexico Posted February 22, 2023 Share Posted February 22, 2023 1 minute ago, offshoremanxman said: Last time I checked it wasn’t legal to charge people more to pay in installments than it would be to pay by cash or any other means. You're confusing two different things. It's always been legal to charge people more for paying in instalments, to reflect the cost of processing more payments and to reflect the cost of inflation. What you're thinking of is charging extra based on method of payment, which is no longer legal. So you can't charge extra for someone paying by credit card for example. Quote Link to comment Share on other sites More sharing options...
Banker Posted February 22, 2023 Share Posted February 22, 2023 10 minutes ago, offshoremanxman said: Last time I checked it wasn’t legal to charge people more to pay by credit/installments than it would be to pay by cash or any other means. The card providers certainly can’t do that anymore in the IOM via an additional card processing fee. Also how can Treasury’s DD system be any more expensive to operate than anyone else’s? Especially as you seem to be only allowing people to pay over 6 months as if you collect over 6 installments you have to be registered under the consumer credit act like everyone else collecting installments which they don’t seem to want to do. Yes it is, lots of clubs/gyms etc do it eg pay in a lump sum it’s £500 pay in installments it’s £525, the charge DOI is reasonable as it does require monitoring to ensure all the installments are paid Quote Link to comment Share on other sites More sharing options...
TheTeapot Posted February 22, 2023 Share Posted February 22, 2023 (edited) Two installments, not 6. Edited February 22, 2023 by TheTeapot Quote Link to comment Share on other sites More sharing options...
offshoremanxman Posted February 22, 2023 Share Posted February 22, 2023 Just now, TheTeapot said: Two installments, not 6. Is that all? I thought it was 6 installments. Quote Link to comment Share on other sites More sharing options...
TheTeapot Posted February 22, 2023 Share Posted February 22, 2023 11 minutes ago, offshoremanxman said: Is that all? I thought it was 6 installments. No, you can tax it for 6 months at a time, which should have happened ages ago really but its progress. Even if they do charge you more. 1 Quote Link to comment Share on other sites More sharing options...
Chris Thomas Posted February 22, 2023 Share Posted February 22, 2023 27 minutes ago, offshoremanxman said: Thanks. But it looks like you have deliberately only allowed 6 installments so as not to be caught by the CCA so presumably it should be cheaper to collect with no additional regulatory costs or requirements unlike most other installment providers? The 6 month duty option is aimed at enabling registering for 6 months. It is not aimed to provide credit or a payment plan, although two 6 month duties can be combined for 12 months of duty. We have discussed briefly some of the issues with our intended introduction of direct debits. Quote Link to comment Share on other sites More sharing options...
offshoremanxman Posted February 22, 2023 Share Posted February 22, 2023 1 minute ago, Chris Thomas said: The 6 month duty option is aimed at enabling registering for 6 months. It is not aimed to provide credit or a payment plan, although two 6 month duties can be combined for 12 months of duty. We have discussed briefly some of the issues with our intended introduction of direct debits. I thought the whole idea was to make road tax more affordable for lower income people. People registering for six months tax only are presumably reasonably wealthy (camper van owners, classic car owners, motorbike owners) who don’t need a car 24/7. So you’re saying that people still can’t actually pay their road tax in monthly installments if they don’t have enough money to pay it upfront? Quote Link to comment Share on other sites More sharing options...
Nellie Posted February 22, 2023 Share Posted February 22, 2023 7 minutes ago, TheTeapot said: No, you can tax it for 6 months at a time, which should have happened ages ago really but its progress. Even if they do charge you more. I have a 'classic' car which I only use in the summer months. It is not old enough to yet be treated as 'classic' for tax purposes. The current tax expires in May 2023. As I understand it, I will be able to tax it for 6 months and pay 50% tax, plus £6. I will then leave it untaxed and off the road until the following April/May, then repeat the process. I imagine many owners of similar vehicles will do this. 1 Quote Link to comment Share on other sites More sharing options...
TheTeapot Posted February 22, 2023 Share Posted February 22, 2023 5 minutes ago, offshoremanxman said: I thought the whole idea was to make road tax more affordable for lower income people. Ha ha ha. More affordable in the sense that it is easier to come up with £150 in one go twice, than £300 in one go once. But charge you £12 for it, cos you're already skint. Proper government, sticking it to the poor. 4 1 Quote Link to comment Share on other sites More sharing options...
TheTeapot Posted February 22, 2023 Share Posted February 22, 2023 3 minutes ago, Nellie said: I have a 'classic' car which I only use in the summer months. It is not old enough to yet be treated as 'classic' for tax purposes. The current tax expires in May 2023. As I understand it, I will be able to tax it for 6 months and pay 50% tax, plus £6. I will then leave it untaxed and off the road until the following April/May, then repeat the process. I imagine many owners of similar vehicles will do this. Its a nice perk for people in a position to own a car they don't actually need. Our government has its head up its ass. 2 1 Quote Link to comment Share on other sites More sharing options...
offshoremanxman Posted February 22, 2023 Share Posted February 22, 2023 (edited) 2 minutes ago, TheTeapot said: Ha ha ha. More affordable in the sense that it is easier to come up with £150 in one go twice, than £300 in one go once. But charge you £12 for it, cos you're already skint. Proper government, sticking it to the poor. I honestly misread it and thought you could pay 12 months tax over a max of 6 months (which would be halfway logical). That to be honest is a shocking waste of time in a cost of living crisis. Edited February 22, 2023 by offshoremanxman Quote Link to comment Share on other sites More sharing options...
Nellie Posted February 22, 2023 Share Posted February 22, 2023 1 minute ago, TheTeapot said: Its a nice perk for people in a position to own a car they don't actually need. Our government has its head up its ass. Indeed! Law of unintended consequences. 1 1 Quote Link to comment Share on other sites More sharing options...
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