Question to the Department for Transport:

To ask the Secretary of State for Transport, whether his Department plans to remove or reduce the fee incurred when paying vehicle excise duty via credit card.

The fee charged when paying vehicle excise duty (VED) by credit card is to meet the costs of processing credit card payments. The fee is provided for in the Road Vehicles (Payment of Duty by Credit Card) (Prescribed Fee) Regulations 2005. The Driver and Vehicle Licensing Agency (DVLA) must comply with HM Treasury’s “Managing Public Money” guidance and recover costs from those who use its services.

The Driver and Vehicle Licensing Agency (DVLA) regularly reviews all the fees and charges it makes for the services it provides, including the fee incurred when paying vehicle excise duty (VED) using a credit card. Paying VED using a debit card is free of charge. Customers can also pay for VED by cash, cheque or debit card at a Post Office® and direct debit is now offered as an additional way for people to pay their VED.