Increasing number of UK drivers missing vehicle tax payments

This comes after payments couldn’t be taken due to a lack of funds, figures analysed by the RAC show.

Almost one million drivers (950,377) had their Direct Debits cancelled in the financial year 2021-22, an increase of 9 per cent on the 862,529 on 2020-21. This is, however, still fewer than the 1.1m cancelled in 2019-20.

Perhaps even more concerning is that between April and December 2022, nearly three-quarters of a million (721,486) had their Direct Debits cancelled which, if this trend continues during the cost-of-living crisis until April 2023, could mean an even bigger total than the 2019-20 financial year.

Under current procedures, a missed payment, or an unpaid Direct Debit results in the DVLA contacting 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.

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