Budget 2014: Government launches direct debit scheme for VED

The 2014 budget has made it easier to pay for VED (road tax) with motorists now able to pay by direct debit annually, biannually or monthly. 

The news was made by the Chancellor of the Exchequer, George Osborne, as part of the 2014 Budget statement. The Government claimed that the new VED payment scheme will make it easier to tax a vehicle, although a five per cent charge will apply to biannual and monthly payments. 

The news follows a raft of changes to the way motorists can tax their vehicle, with the paper tax disc due to be phased out in October 2014.

Tax discs were first introduced in 1921 and it has been a requirement to display them ever since. This is despite recent advances in technology, which mean almost all information on a car is stored in a central database easily accessed by law enforcement. The database includes cars insurance status, whether it has a valid MoT and whether VED has been paid.