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Yea you have to renew (repay) the license every year. It's best explained here:

http://www.tvlicensing.co.uk/information/index.jsp#link2

A colour TV Licence costs £131.50 and a black and white licence costs £44.00.

Here's an example of an actual threatening letter they send out to households with no license on their records (red comments have been added by the site below, not by me):

http://www.taith.org.uk/tv/newapproach.htm

"To the Legal Occupier [This is a new term. Is it designed to maximise the threatening impact?].

"TV Licensing Officers will soon be visiting (your street).

"You do not have a TV licence - you must take steps to avoid further action. [Further threatening sentence? TV licensing is making a big assumption that the legal occupier needs to take steps simply because there's no licence at the household].

"After repeated reminders that this address is currently unlicensed, we have still had no response from you. If you watch or record television programme services without a valid TV licence it is against the law [here at least is a recognition that you don't need a licence simply for owning a TV] and we now suspect you of wilful evasion of payment. [harassment?].

"It would be wise for you to take steps to avoid legal action [further threat?]

"You may not realise that our enforcement officers have been catching far more people recently, because:

"Using sophisticated equipment on unlicensed households, we can identify if a TV is being watched within 20 seconds [households not breaking the law would far rather TV licensing gathered evidence of usage rather than sending letters or cold-calling inspectors, both of which is harassment].
"In addition to making daytime visits, they're now authorised to visit you evenings and weekends [One would always assume that it would be part of the job to visits at peak TV viewing times].
"They can apply for a search warrant to enter your home; and have the right to examine and test any television receiving equipment located on the premises [Doesn't this confirm that you don't need to let an inspector in, unless he has a warrant? Further, doesn't this also confirm that even if you do let him in, there's no obligation to show him your installation?]

"Avoid the risk of legal proceedings and a fine of up to £1,000 by calling..." [The letter concludes with the usual comments about making payments and licence fee costs].

hows that for government intrusion?

Thanks. I appreciate the info. I'm between being incredulous and ROFLMAO. Surely, this is a joke? How does anyone put up with this nonsense? Glad I live in the U.S. I have scant patience for officious petty officials.