If you watch a TV set, you need a licence. Simple as that. Don't pay, and you may get smacked with a £1,000 fine. Whether or not you agree with the licence system, until it changes you have little choice. However there are some canny ways to help you save if you know when and how to pay. Plus don't miss out on possible discounts.
Where does the money go?
Currently a colour TV licence will set you back £142.50 or £48 for a black & white one. The cash funds public broadcasting by the BBC, allowing it to run without the annoying interruption of adverts, and makes up about 75% of its income. According to the BBC, the money you pay is split between the following resources (based on 2006/2007 figures).
Source: BBC.co.uk
However the BBC contracts the collection and administration of the TV licence out to the TV Licensing company.
Do you need a licence?
Legally you need a licence for any television receiving equipment such as a TV, digital box, video recorder, PC, laptop or mobile phone to watch or record TV programmes as they're being shown. And despite some of the fee funding radio stations, you don't need a licence if you're only listening to radio, that was abolished years ago.
You don't need one if you're only watching DVDs or using it for gaming (though you'll need to sign a declaration form for this).
Your TV licence will cover your household no matter how many TVs or freeview boxes you have but the rules differ for shared student accomodation (see below). If you have a second home you'll need to get a separate licence. However if your second home is a mobile one you won't need a licence provided you aren't using the TVs at the same time.
If you move house it's possible to simply update your contact details or get a refund for a complete unused quarter. See the TV licensing site for info on how to get a refund.
What about BBC's iPlayer?
If you are ONLY watching on the internet via BBC's iPlayer or other internet broadcasts systems which AREN'T being shown live; you don't need a licence. However if you're watching live shows you will need a licence as normal. There's more info on the BBC iPlayer site.
Do students need a TV licence?
Again the answer in most cases here, is yes. Your parents' TV licence won't cover you unless your permanent registered address is with them plus you don't have your receiving equipment plugged into an aerial or a mains socket to receive the picture. So even if you're only watching TV on your laptop; you'll still need one.
If you're in halls of residence you'll probably be covered for communal areas but not your own room; do check though. If you're living out of halls in a shared house and have signed a joint tenancy agreement you'll need only one licence for the household. However if you have separate agreements you'll need one for your room.
What happens if you get caught without one?
Watching TV without a licence is against the law and the TV Licensing company has enforcement officers that carry out checks. Fee dodgers face prosecution plus a fine of up to £1,000 if you don't cough up.
Pay the right way
The cost of TV licences usually goes up in April, by around the rate of inflation plus 1.5%. You can only pay for a licence up to a month in advance so if your licence is due to expire in March and the price is increasing, renew then to beat the rise. You can pay by credit card, debit card, BACs, online and by its own savings scheme. However be careful you don't get caught out with some payment methods.
- Warning! DO NOT PAY by quarterly Direct Debit.
Pay by quarterly direct debit and you'll pay a premium of £1.25 a quarter (£5 a year) more than paying by monthly Direct Debit, using its saving card or just paying in one lump sum.
- Pay on a cashback credit card.
If you've got a cashback credit card, then simply use it (providing you pay off in full at the end of the month) to pay by card over the phone or online and you can get a slice of cash back. Currently you can't pay for your licence with Amex, usually the top cashback card. For the best non-Amex alternatives read the Best Cashback Cards article for more info.
- The cash payment plan
For those struggling to budget for the TV Licence, it has its own 'cash payment plan', allowing you to upload cash onto a card, at various newsagents and other shops which are signed up to the scheme – or it can be done on the phone.
The advantage of this is you don’t have to pay in one lump sum or Direct Debit. Yet you do end up paying for the first year's licence in six months. Once that’s done (meaning you’re six months ahead) you pay for the plan normally.
Can you get a discount?
You may be entitled to a discount on your TV licence. Some discounts will require proof, others you'll get automatically.
- Students: get a refund for holidays
If you're a student who, at the end of the academic year, has a full three months left on your licence and won't be using it before it expires then you can get a refund on the remainder. Details on how to get a refund are on the TV Licensing website.
- If you're blind: get 50% off
If you or someone you live with is blind, you'll get 50% off the cost so your licence will cost £71.25 for a colour TV or £24 for a black and white one. You'll need to provide TV Licensing with a certificate from your opthalmologist confirming you are blind or visually impaired.
- 75 or over? Get a free licence
Over-75s get a free TV licence while if you're over 74 and your licence will run out before you're 75 you're entitled to the Short Term TV Licence covering you until you reach 75. If you've got a short term licence you should receive the free one automatically as soon as you reach 75. If not get in touch with the TV Licensing company.
- In residential care: get a concessionary licence
If you watch TV in your own room or flat then you need a licence. If your residential home qualifies for an Accommodation or Residential Care (ARC) Concessionary Licence and you're retired and over 60 or are disabled then you can join the scheme and pay £7.50 per year. If you have a licence when you move in you can get a refund on any full months remaining.
- Second home owners
You'll still need a licence for a second home. However, if it's a static caravan and the TV won't be used at the same time as ones in your main residence you won't need one (though you'll need to sign a declaration stating this). If your second home is a touring caravan or vehicle you won't need a separate licence.
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