How to pay your car tax with an American Express card

Reader Dan dropped me a note to say that he had just renewed his car tax, and was pleasantly surprised to see that the DVLA website is now accepting American Express for payment. This is quite rare for a Government department.

I had a dig around, and it seems that this has been possible for at least six months.  However, as you only renew your tax once a year you might not have come across it yet.

There is a £2.50 fee for paying by Amex.  If you have a low-emission car then you might find that the £2.50 fee is not worth it, unless you have a spend target to meet on a new American Express card.  Once you get into the £200 range, though, it is tempting to pay the fee – especially with a BA Premium Plus Amex, at 1.5 Avios per £1.

You may also want to think about timing your next Amex card application to fit in with your next car tax payment.  After all, a £200 charge makes a big dint in the minimum spend required to hit a sign-up bonus.

As a reminder, the spend targets on the main Amex-issued cards are:

Amex Preferred Rewards Gold – £2,000 spend in 3 months, current bonus 20,000 Amex points (=20,000 Avios) 

Amex Platinum – £2,000 spend in 3 months, current bonus 30,000 Amex points (=30,000 Avios)

BA Amex – £500 spend in 3 months, current bonus 3,000 Avios points 

BA Premium Plus Amex – £3,000 spend in 3 months, current bonus 18,000 Avios points

Starwood Preferred Guest Amex – £1,000 spend in 3 months, current bonus 10,000 SPG points (=10,000 Avios)

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Want to earn more points from credit cards? – October 2024 update

If you are looking to apply for a new credit card, here are our top recommendations based on the current sign-up bonuses.

In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.

Earning miles and points from small business cards

If you are a sole trader or run a small company, you may also want to check out these offers:

SPECIAL OFFER: Until 22nd October 2024, the bonus on American Express Business Platinum is increased to up to 80,000 Membership Rewards points, worth 80,000 Avios. You will receive 8 points per £1 spent for the first three months, on up to £10,000 of spending. Click here to read our full card review. Click here to apply.

SPECIAL OFFER: Until 22nd October 2024, the bonus on American Express Business Gold is increased to up to 40,000 Membership Rewards points, worth 40,000 Avios. You will receive 4 points per £1 spent for the first three months, on up to £10,000 of spending. The card is FREE for your first year. Click here to read our full card review. Click here to apply.

For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback when you spend at least £2,000 per month.