Why in England does it cost more to tax your car every six months, than it does to tax it every year? Is it a case of the government penalising people who cannot afford to pay yearly? What could be done to change this?
by 
Derry Tift
ANSWERS: 2
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Its to encourage people to do it yearly. If you look at other subscriptions you will see the same pattern. The longer the subscription the cheaper the price. It helps reduce administration costs.
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Handling paperwork costs. Taxing six monthly has twice as much paperwork as taxing yearly. So they pass the cost on to you. Actually, it probably costs more the extra cost they are passing on to you. Also, they can earn six month's interest on the second half of the money if you pay it up front.
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