What is Council Tax? How can I pay it? Do I qualify for a discount or exemption? This tax is based on the value of your housing. However, you could have it reduced depending on your situation. Your Benefit will tell you everything you need to know about Council Tax.
What Council Tax band am I
Council Tax is a tax that is determined in part by how much your home is worth. It helps fund local councils, and allows them to pay for services that they provide. For example, your Council Tax may fund maintaining street lamps, street cleaning, roads and rubbish collection.
For every valuation band, how much Council Tax you have to pay is different. Valuation bands are also ranked A through H. More specifically, H is the highest home value, and A is the lowest home value. They are as follows:
| Council Tax valuation bands in 2022 | |
|---|---|
| Valuation band | Range of home values |
| A | Up to £40,000 |
| B | Over £40,000 to £52,000 |
| C | Over £52,000 to £68,000 |
| D | Over £68,000 to £88,000 |
| E | Over £88,000 to £120,000 |
| F | Over £120,000 to £160,000 |
| G | Over £160,000 to £320,000 |
| H | Over £320,000 |
What impacts my valuation band
The valuation band that your property belongs to for your Council Tax can change. This is reliant on a number of things. What may change your valuation band includes:
- A property that is similar to yours in your area changed valuation band;
- Your area is experiencing significant changes (this might include the building of a road);
- The previous owner changed your property in ways that are significant;
- You begin or finish working from home;
- One property is created from combining flats;
- Flats are created by splitting one property;
- Your property is turned into 2 or more self-contained units (each of the properties will have their own valuation bands. An example of this may be an annexe);
- You demolish and choose to not rebuild a part of your property.
You changed something about your property. Additionally, changes may have also been done to your area. However, if you are unsure if they will affect your property’s valuation band, you may contact the Valuation Office Agency (VOA).
Do I need to pay Council Tax?
If you are over 18, you likely do need to pay Council Tax. If there are 2 adults living in a home together, this will result in a full Council Tax bill. Spouses and partners may be living together. In such a case, they are both equally responsible for paying the bill.
How to pay Council Tax
The most convenient way you may pay for the tax is online, on the Gov.UK website. More specifically, paying online is a good way to save time, as it is a way to pay your Council Tax bill automatically.
If you do not wish to do so, you may pay by phone. Who you need to call depends on your local council. Finally, you may pay in person or at your own bank.
How much is my Council Tax?
How much Council Tax you need to pay depends on where you live and what your valuation band is. Additionally, how much different valuation band are worth depends on your local council.
What happens if you don’t pay Council Tax?
You may not have paid some of your Council Tax. Then, you are in ‘arrears‘. In other words, you now owe money to your local council. Moreover, you should not ignore arrears, as your local council couldquickly take you to court.
If you do not pay, you will receive a ‘final notice‘. You may also receive it if you were late 3 times to pay within the same year. Then, you will have to pay the rest of the year’s Council Tax within the following 7 days.
What qualifies for Council Tax reduction?
When calculating how many people are living in a property, some residents may be counted as “disregarded”. In fact, this may be true for you. Then, you may be able to apply for a discount (or even exemption) on your Council Tax bill. You may qualify as disregarded if you are:
- Under 18 years old;
- Training under certain apprenticeships;
- In full-time education and 18 or 19 years old;
- A full-time student at college or university;
- Receiving funding from the Education and Skills Funding Agency and are under 25 years old;
- Studying to be a nurse;
- Currently a foreign language assistant registered with the British Council;
- Severely mentally impaired;
- A live-in carer for someone other than your partner, spouse, or child under 18;
- A diplomat.
If everyone living in a household is considered disregarded, you qualify for a 50% discount. However, if this the case but you already paid your Council Tax, then, you will get a 25% discount. Furthermore, you will also receive this discount if you already pay the tax and live on your own.
How to apply for Council Tax reduction
You can apply for a discount at your local council. You are likely to fill a form, or do the application online. Some also allow applying by phone.
If you are unsure of who your local council is, you can find out on the Gov.UK website. From there, there should be instructions on how to proceed to get a discount.
Council Tax for apprentice
You may be training under an apprenticeship, and do not have to pay Council Tax. However, you will need to provide proof. More specifically, a document from your employer. It will need to state the following:
- The pay you receive will not exceed £195 weekly;
- At the end of the training, you will be awarded a qualification that is recognized by either the Scottish Vocational Education Council (SVEC), or the Office of Qualifications and Examinations Regulation (Ofqual).
What about reductions for students?
You may be in a home where every person there is a full-time student. If this is the case, then you may apply for an exemption.
This is the case even if you receive a bill. However, you could be unsure whether you count as a full-time student or not. Your course needs to both the following:
- Be one year long or more;
- Require 21 hours a week of studying minimum.
You may be under 20 years old. If the qualification you are studying for is also up to A level, your course requirements are not as strict. Instead, your course needs to:
- Be 3 months long or more;
- Require 12 hours a week of studying minimum.
Council Tax discount or exemption for disabled
You or someone you live with may be disabled. Then, you might qualify for a discount or exemption. This is the case if your home is larger to accommodate for your or the other occupant’s disability. You would then be eligible for the Disabled Band Reduction Scheme.
Are you unsure if you qualify for this scheme? Then, your home needs to have one of the following:
- Have a kitchen, bathroom or other room needed for the disabled person;
- Extra space to account for a wheelchair.
This is to make sure that people anre not paying more than they need to. Disabled people may need more space to accommodate for their disability. If they have to live in a home larger than usual, then they may not pay the full Council Tax for it.
Can I earn a discount if I am severely mentally disabled?
You or someone you live with may be severely mentally impaired. If this is the case, you are likely eligible to receive a 25% or 100% Council Tax reduction. You will need to provide the following documents:
- A certificate from a medical professional (like your General Practitioner for example) which shows that you are severely mentally impaired;
- Proof that you are eligible for certain benefits. You may do this step with the help of your local council.
How do they work out your council tax bill if you are on benifits or low income
Hello,
They look at your income, and/or other benefits that you receive.
Hope this helps,
Robin