What Hell Are TV Licences Up To

Garrett

Moderator
Got letter to say my TV licence was up for renewal at the end of the month, never bothered reading much more so of I go to the Post Office, and gets told sorry we don’t renew them her now you have to go to a Pay Point.

I also look on the slip now that I can pay by Direct Debit at £11 a month. Now let me see I take it this is paid in advance for 6 months then 6 months after for the following year.
What’s more the TV licence is £131.50 paying monthly is £11*12 = £132. So do I take it not only do the have your money in advance making them interest but charge you more.


This not a thread on whether the BBC should be funded by a licence which has been covered in the TV and this forum plenty of times before. Thank you:smashin:
 

unique

Moderator
don't most post offices have a paypoint anyways? as well as selling all sorts of other absolute crap?

i pay my license by direct debit. after all my d/d's are deducted i know i simply have no money left over and life is a lot simpler that way
 

stealther

Novice Member
Dont like the way the structure the DD I have 10 months left on my licence but In order to pay a low monthly DD I need to start paying it now for next year which means there getting next years license money up front.:thumbsdow
 

mjn

Distinguished Member
stealther said:
Dont like the way the structure the DD I have 10 months left on my licence but In order to pay a low monthly DD I need to start paying it now for next year which means there getting next years license money up front.:thumbsdow
you mean the way, a lot of companies pay you your wages?
 

Alun

Novice Member
unique said:
...i pay my license by direct debit. after all my d/d's are deducted i know i simply have no money left over and life is a lot simpler that way

With you all the way there:eek:
 

Garrett

Moderator
stealther said:
I get paid monthly in arrears. So by the time I get paid I have worked a whole month for that money.
I think he meant they get work out of you before paying you.

But mjn you dont work a year before getting paid or 6 months like that the TV licence people do.
 

mjn

Distinguished Member
Garrett said:
But mjn you dont work a year before getting paid or 6 months like that the TV licence people do.
Thats right, most people get paid monthly, a bit like paying for your TV licence by monthly direct debit.

Personally, i don't see the problem with paying by DD, so what that they take money 6 months in advance, should you ever decide to get rid of your TV, you can claim back the extra money you paid in.
 
stealther said:
Dont like the way the structure the DD I have 10 months left on my licence but In order to pay a low monthly DD I need to start paying it now for next year which means there getting next years license money up front.:thumbsdow
What's the problem in paying it upfront or after, doesn't that only affect the situation when you start, cause from thereon you are just paying it....So it doesn't really matter once you are in the cycle....
 
Garrett said:
What’s more the TV licence is £131.50 paying monthly is £11*12 = £132. So do I take it not only do the have your money in advance making them interest but charge you more.
Actually doesn't their website state approximately £11 and the total annual is the same....So they do not charge more I think, only for the quarterly direct debit which is an arears payment option....
 

russ123

Active Member
You pay exactly the same, there is one month that is slightly different to even it out. It is swings and roundabouts. You pay by cash and you pay a whole year in advance when it is due. You pay by direct debit, you have to pay monthly 6 months before but that means when the licence is due you get it when you have only paid half and wont finish paying for it for another six months.
 

krish

Distinguished Member
When I bought and moved into my house last year, from rented accomodation (where bills and TV licence were paid for) - I just did the whole TV Licence and direct debit application online in under a few minutes on the day of the move. Very very convenient, and around £10.50ish a month at the moment... great for those of us who like things that way :smashin:

Though agree they shouldn't be making it difficult for those who've paid for it the traditional way at the Post Office.
 

General Skanky

Well-known Member
The only thing I pay for annually.

I don't like the system where they have 6 months money in advance. Why do they do that? Without going off topic, it's handy that the customer doesn't have a choice.

I pay Sky monthly. Ok, not a licence as such, but same principal. If they ever asked me for a 'lump sum' up front I think they'd know the reply.
 

Jenn

Novice Member
When you buy a TV you pay for it before you receive it don't you?

I don't have a problem with how it's being paid, what I have a problem with is how much it costs.
 

General Skanky

Well-known Member
What?

Sorry, disagree.

The licence should fall into line with any other commercial scheme.

Why should they pocket 6 months of my money up front?
 

Jenn

Novice Member
General Skanky said:
What?

Sorry, disagree.

The licence should fall into line with any other commercial scheme.

Why should they pocket 6 months of my money up front?
Well I hope you're not self employed or own a company and get more than 50% of your income through dividends rather than PAYE because you'd be paying your income tax before you've actually earned the money !

It's these things where that's how it works and it's worked like that for a while (maybe it's always been that way).
I think BT also now are charging 3 months upfront for their packages (not the calls themselves). Most things you buy you have to pay first anyway.
 

Ultima

Well-known Member
Jenn said:
Well I hope you're not self employed or own a company and get more than 50% of your income through dividends rather than PAYE because you'd be paying your income tax before you've actually earned the money !
Err, can you please explain this?????:confused: I don't pay my tax before I have earned the money.

Martin
 

Jenn

Novice Member
ashworthacca said:
Err, can you please explain this?????:confused: I don't pay my tax before I have earned the money.

Martin
If you receive most of your income through dividends (or non PAYE.. meaning not through your wages with tax paid straight away) you pay your self assessment tax in advance.

So for example you create a ltd company today and for the whole year you get a small wage of £8k but at the end of the year you award yourself £30k dividends (people do that to save on tax), you have received most of your income out of PAYE.
So the IR will charge you say £10k tax for this year and also the same amount for next year payable at the same time because they assume you will earn approx the same next year. Then every year after you are actually paying the tax for the following year.
I hope that makes sense.
Basically you pay your tax before you've earned the money.
 

Ultima

Well-known Member
Jenn said:
If you receive most of your income through dividends (or non PAYE.. meaning not through your wages with tax paid straight away) you pay your self assessment tax in advance.

So for example you create a ltd company today and for the whole year you get a small wage of £8k but at the end of the year you award yourself £30k dividends (people do that to save on tax), you have received most of your income out of PAYE.
So the IR will charge you say £10k tax for this year and also the same amount for next year payable at the same time because they assume you will earn approx the same next year. Then every year after you are actually paying the tax for the following year.
I hope that makes sense.
Basically you pay your tax before you've earned the money.
No that's not how it works.

If you fall into Self Assessment and are required to make payments on account these are made on 31st January (During the tax year) and 31st July (after the tax year end) with any balancing payment due the following 31st January (nearly 10 months after the tax year end).

As you can see, you have paid no tax on earnings from 6th April to 31st January (the 1st Payment on account date) so you can't be paying in advance, you are actually in arrears (possibly, depending on whether the payments on account are too big).

Many of my clients seem to think they pay their tax in advance until I explain it to them.

Martin
 

Jenn

Novice Member
This is how it happened in my experience (not real numbers for wages etc.):

First year: April 2000 to April 2001: Wages = £8k - Dividends = £30k.
Self assessment sent in September 2001. Tax due for the year say £10k.
January 2002 I have to pay £10k + £5k payment on account for the year April 2001 to April 2002. July 2002 I have to pay £5k on account for the year April 2001 to april 2002.

If the money was earned through PAYE I would be paying tax in January 2003 for the money earned between April 2001 and April 2002.

So basically I am paying £5k one year early and £5k 6 months early.

Then in January 2003 I would be paying some tax for the year April 2002-2003 etc.

Please tell me if the IR have been ripping only me off!!
 

Ultima

Well-known Member
Jenn said:
This is how it happened in my experience (not real numbers for wages etc.):

First year: April 2000 to April 2001: Wages = £8k - Dividends = £30k.
Self assessment sent in September 2001. Tax due for the year say £10k.
January 2002 I have to pay £10k + £5k payment on account for the year April 2001 to April 2002. July 2002 I have to pay £5k on account for the year April 2001 to april 2002.
The dates are correct. If you are paying half on 31st January 2002 and half 31st July 2002 against earnings for the year ended 5th April 2002 your are paying in arrears not in advance.

Martin
 

Ultima

Well-known Member
Jenn said:
If the money was earned through PAYE I would be paying tax in January 2003 for the money earned between April 2001 and April 2002.

So basically I am paying £5k one year early and £5k 6 months early.

Then in January 2003 I would be paying some tax for the year April 2002-2003 etc.

Please tell me if the IR have been ripping only me off!!
No, if your earnings were PAYE earnings you would be paying tax every pay day.

Martin
 

Jenn

Novice Member
ashworthacca said:
No, if your earnings were PAYE earnings you would be paying tax every pay day.

Martin
I understand that but if I was earning £16k in PAYE and £14k in dividends I'd be paying tax later if you see what I mean.

The dates are correct. If you are paying half on 31st January 2002 and half 31st July 2002 against earnings for the year ended 5th April 2002 your are paying in arrears not in advance.
I'm only paying half after I've earned the money. The 1st half is paid 4 months before I've earned all the money.
And what I meant is I'm paying earlier than if I was earning more in PAYE than in dividends (exemple above).

Where it would hurt is for exemple if the company closed and I had next to no income during the year but I still would have to pay tax in January and July based on my income from the previous year and then get a refund the next January.

Anyway this is off topic :)
 

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