Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, when his Department implemented the five per cent surcharge for paying road tax either monthly or as two six-month payments.

In October 2014, the Government reformed Vehicle Excise Duty (VED) to allow motorists to pay by Direct Debit either monthly, six monthly, or annually. To limit the impact on the public finances a five per cent surcharge was introduced on monthly and six monthly direct debit payments. Previously this surcharge was 10%. This surcharge recognises the loss of interest resulting from delayed payments.