What is council tax?
Council tax is a mandatory tax applicable on your domestic property in the UK. It is collected by the local authorities of your area. The revenue collected is utilized for funding local services.
- construction of roads or providing transport services
- libraries or educational services in your local area
- collection and disposal of rubbish in your area
- providing administration services
- maintenance of recreation projects, for instance, parks or sports center
- police services
- fire services
- conducting local elections
This taxation system was introduced in 1993.
Who collects the council tax?
The council tax is calculated by the local council of your area. It is used for funding various local services in your area.
How to register yourself for the council tax?
Here are several ways by which you could get yourself registered for the council tax.
You can access your Council tax online. Go to the ‘Council Tax’ portal. Select the ‘ View change of address services under the ‘tell us you have moved’ option. Now select the appropriate option.
Complete the above steps to successfully complete the registration for council tax. Thereafter, a tax account number will be provided.
Through a registration form
Download the registration form of council tax in pdf format and fill in all the essential details. Then post the form to the given address.
Corporate and Customer Services/ Revenues
London, N22 7WJ
Through the Council Tax Office
Contact the Council Tax Office and provide all the details to get yourself registered. You will be required to provide some necessary details, including your property address and the names of every member above the age of 18 residing in that property. You might also be required to provide the date of purchase or rental of the property or the date you moved into.
How is your council tax assessed?
Your council tax is evaluated on the basis of the council tax band of your local property. However, in some cases, you might get a discount on the council tax. It is known as Council Tax Reduction. In some cases, you might be completely exempted from paying any tax on your property.
The valuation band depends on the value of your property as of April 1, 1991.
You can find out the council tax band of your property by checking out the council tax bill or referring through your online tax portal.
You can also check out your valuation band through the table given below.
|Valuation band||Value of your property|
|A||up to £40,000|
|B||More than £40,000 but below £52,000|
|C||More than £52,000 but below £68,000|
|D||More than £68,000 but below £88,000|
|E||More than £88,000 but below £120,000|
|F||More than £120,000 but below £160,000|
|G||More than £160,000 but below £320,000|
|H||more than £320,000|
Who is required to pay the council tax?
A ‘liable person,’ generally the one who owns the property and is aged above 18, is required to pay the council tax bill.
Anyone aged under 18 is exempted from paying the council tax.
Couples who live together are said to be ‘jointly liable,’ i.e. both are equally liable to pay the tax.
Generally, the person who resides in the property is required to pay the council tax bill. However, in some cases, the property owner might be entitled to make the payment of council tax bill even when someone else lives on his property.
How to pay the council tax bill?
There are several payment methods to pay for your council tax bill. You can make the payment through several procedures, including online payments, through direct debit, by bank transfer, by phone through the post, or in-person payment.
- Pay the bill online: You must have the council tax number provided by the local council. You can check out your council tax number on the top left corner of your council tax bill. Online payments are a safe and secure way for all your money transfers.
- Through direct debit: You can easily set up a debit card payment online. You would require your council tax account number and your bank details.
- Payment through phone: You can make the payment for your council tax bill by phone through a payment line. These are 24*7 payment lines to pay the bill by phone call. You can also make payments through certain apps.
- Through post: You can send the cheque by post to your council. You will require to mention your council tax account number. You might also receive a receipt if you demand.
- In-person payment: You can pay via cash, cheque, or credit/debit card at the post office, newsagents, PayPoint outlets, Payzone, banks, or citizen service points. However, you must carry your council tax bill with you.
How many monthly installments can your council bill be split into?
Generally, the council bill is worked out in ten installments. However, to ease your budgeting, you can split the payments into twelve monthly installments. You can contact your local council regarding the same.
If you have a ten monthly payment schedule, you will get a two-month tax break during the calendar year. These months are generally February and March. However, the months can differ depending on your payment schedule.
If you pay all your council tax payments at the same time, usually at the beginning of the financial year, you might get a discount on the total bill.
Before paying the bills, you must check if you are eligible for a reduction in your council tax bill. If you are ‘disregarded’, there is a complete exemption from paying any council tax. In certain other cases, you might get a 25 percent discount.
For instance, if you are a student or are living alone in the house, or are disabled or living with someone who has a disability or is mentally impaired. In all such cases, you would receive a 25 percent reduction in your bill.