The Government is being urged to stop using checks to pay car taxes after the Driver and Vehicle Licensing Agency (DVLA) admitted it does not know how much of the millions it spends each year is collected.
If someone sells or gets rid of their car, they can receive a refund for the remaining months it is taxable, but that refund will be sent by check to the registered address.
Data obtained from I A Freedom of Information request shows that around five million such refunds are sent each year. Last year, 4.6 million refunds were issued, valued at £382 million, with an average cost of £80 per refund.
However, the DVLA has no data on the total proportion of these checks that go uncashed, meaning many drivers could lose out on money they are entitled to.
Driving activists have called on the government to offer electronic refunds instead.
Jack Cousins, head of road transport policy at the AA, said: “The use of checks has fallen significantly in recent years and the DVLA must keep pace with driver demands.”
“If people still want to receive a check, they should get one, but as online banking becomes faster and more convenient, many want this to be the default option.”
The previous data comes from I found that the use of checks by government agencies is causing many to miss out on tax refunds to which they are entitled.
Last year, I More than 500,000 people are losing out on hundreds of pounds a year in overpaid income tax due to HMRC’s insistence on checks being returned, it has emerged.
Experts called the figures “staggering” and said many would find the system “burdensome” due to the difficulties many face cashing checks because they don’t have access to bank branches.
Here’s what the DVLA said I that although she did not have the overall figures, she could tell whether an individual check had been cashed.
An agency spokesman said: “We want to provide our customers with the fastest and easiest service possible. “So please review regularly how this can be improved,” including how customers can make payments and receive refunds.”
The vehicle tax amount varies depending on emissions, price and other factors.
Some people don’t have to pay tax, but others have to pay over £2,000 a year, and those who do pay these taxes can do so using a debit card, credit card or direct debit.
Source: I News
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