Ah council tax…not quite as thrilling as bungee jumping over the Grand Canyon. But it is something that’s worth understanding.
What actually is it?
Council tax is a payment made to your local council (also called your local authority). That money helps fund local services like bin collections, road maintenance (like fixing those potholes Bernard keeps banging on about), street lighting, libraries, schools, social care, and emergency services such as the police and fire brigade.
Basically, it helps keep your local area functioning properly.
Usually, the people living in a property are responsible for paying the bill. So, if you rent with friends or housemates, you’ll normally split the cost between you.
Why does everyone seem to pay different amounts?
Every property is placed into a council tax band. In England, these bands range from A to H. “A” stands for “alright, not too pricey”, and “H” stands for “holy moly that’s expensive” (not official government terminology)!
Your band is based on the value of the property, and it helps determine how much council tax you’ll pay. In general, homes in lower bands (aka earlier in the alphabet) pay less than homes in higher bands.
Can you get a discount?
In some cases, yes.
For example, people who live alone can usually get a 25% discount. Students are often exempt altogether (they need all the funds than can get for pesto pasta), and some households may qualify for council tax support depending on their circumstances.
You may also be able to get a temporary reduction if the property is undergoing major repairs or adaptations.
Find out if you’re eligible for a discount by visiting the GOV.UK page.
How do you actually pay it?
Most people pay council tax monthly by direct debit, usually spread across 10 or 12 instalments throughout the year. Some people choose to pay it all in one go instead.
The main thing to remember
Council tax is a regular household bill, but the amount you pay depends on your home and your circumstances.
It’s not exactly the most exciting thing we pay for, and now that you’ve read this blog you are welcome to return to more exciting activities. But understanding council tax is a great way to make those everyday bills feel a little more manageable.
