This is all very interesting. As I said initially, I pay mine monthly. Have just checked the dvla website & it is showing mot expired 9th Jan but it is taxed until 1st April. So presumably they will take another payment out this month mot’d or not.
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I’ve read the monthly payment article, it says they continue to take your DD. So if you signed up to pay by 12 monthly DD’s after the 12th payment it carries on unless you notify them of the fact you don’t want to tax it that way again. Or of course you cancel because of sorning the car or other reasons. I guess (not sure) when the next 12 monthly payments start at that point the other Doc’s will be checked (MOT/insurance) and informed if not in order.
I always tax for the full 12 months then cancel (sorn) during a period that suits, no extra charges that way for division of payment.
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I do exactly the same, with 3 vehicles 
. Sorry that’s a reply to MickA
Mind you they don’t offer monthly payment options on my daily driver £30 per year.
The previous one was zero £’s but you still had to apply for it.
Same here on the no cost road tax. I get that because of disability but can only use that benefit on one vehicle so use it on the most expensive one.
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Mine was renewed recently, I pay it monthly at £35 , getting to the stage where the insurance for the year is cheaper than the tax!
It’s a 2018 ND
When I sold my last car, which was almost at the end of a month, I cancelled the direct debit with the bank (easy to do with online banking), on the basis that if anything came back I would worry about it later.
Cheer P,
So it looks like Mrbarry is mistaken and there is some other factor in his situation that is effecting his particular circumstance.
All clear now.
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Mines out of MOT since December and so far they have taken Dec and Jan and Feb payments, but I was expecting them too unless I sorn it.
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I have just SORN’d the 5 at the end of January. When I checked on GOV.UK prior to doing this, the car was taxed up to April 2021? I was pay monthly. Not having a ‘reminder’ notice from DVLA or whatever it’s called now, it wouldn’t let me SORN the car until the 1st of the month? I tried and it just said car is taxed? Got really confused but did it on the 1st Feb OK. I originally taxed from 1st April 2020, elected to pay monthly so even though I only paid for each month at a time, the car was taxed for the year and I only paid by spreading it out. Not sure if this helps?
Barrie
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Yes it does and the same for me, but I did mine from the 1st November for one reason or another.
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No I have been doing it for ten years or more and it’s always repeatable. End or a 6 or -2 month term, mid term, whenever. I’d my MOT is short no money is taken and DVLA don’t tax the car. It’s really that simple.
Perhaps they get it wrong time and time again just for me then 
Think I need five more pints to make sense of this…
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If your vehicle has a valid MOT at the time you re tax it, the DVLA system will keep renewing if you have set up a DD. I did this with my bike in 2018 thinking I will still be taxed when i return to the UK and get a MOT on arrival back. My bike was taxed all the time I was away even though the MOT had expired.
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Well I have different experience to you then. All of my cars and bikes got taxed monthly and all of them are refused when the MOT is short. As said it can be three months in or 6 months in etc it makes no difference. The DVLA stop taking money and message me. 
I do my 5 monthly. It’s the most expensive of the 4 cars we have.
Because it’s so expensive comparatively I only taxed for 3 months last year. If it wasn’t so much to tax I would just tax all year round. So effectively the system looses out.
My car did less than 150 miles last year
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Is there a difference between starting a new period of tax, where an MoT is >14 days is required, and continuing to pay for the VED “Contract” started when the vehicle had an appropriate MoT.
No the payments stat the same.
It’s not a contract. You just stop the direct debit at any time if you want out and declare sorn.