The rates of duty currently applicable to half-yearly and quarterly discs are 55.5% and 28.25% of the annual rate respectively and incorporate a surcharge element to cover the higher administrative costs involved in processing such applications. These relativities have remained generally constant since the 1960s .
The number of annual, half-yearly and quarterly transactions in 2012 is set out in the table below.
Vehicle Licence
|
Number of transactions
|
Percentage of transactions
|
Annual
|
1,455,061
|
31
|
Half Yearly
|
684,003
|
15
|
Quarterly
|
2,483,215
|
54
|
Total
|
4,622,279
|
100%
|
Non-annual transactions make up over two-thirds of all motor transactions processed. As well as the increased direct costs related to the printing and issuing of non-annual vehicle licences, the issuing of renewal notices, and the attendant postage costs associated with the foregoing, the cost of staff time in processing and recording non-annual licences must also be factored in. The specific cost breakdown is not available.