Council tax is probably the main tax that most people despise paying and I have to say that I agree. It is however necessary and non-payment can lead to court prosecutions and even worse a jail sentence. But what exactly is council tax and why are we forced to pay it?

What is Council Tax?
As the name suggests, council tax is the tax that we all have to pay to our local councils so that the essential public services can continue to run. These services include the police force, the fire service, the ambulance service and the rubbish collectors and so they are worth paying for.

How is Council Tax calculated?
The amount of Council Tax you pay as a household is based on the estimated value of the property you live in and the number of eligible people that live in the house. The estimated value is worked out using your postcode and each postcode will be included in a particular tax band. Band A pay the least council tax while Band H pay the most.

What about the people living there?
The number of eligible people living in the house also affects the amount of Council Tax that is charged. For example, empty properties are exempt from Council Tax until somebody moves in. Single people get a 25% discount and students are also exempt. People who claim certain benefits can also get discounts on the Council Tax bill.

Who exactly is entitled to discounts and exemptions?
There are numerous discounts and exemption clauses available and so anyone who thinks they might be entitled should contact their local authority. Single occupants get a 25% discount on their bill before any other discounts are applied while student households are exempt from paying the tax; however everyone living in the property has to be in full time education to qualify. People who claim other benefits or carer’s allowances or even pensions can also receive rebates and exemptions and these should always be looked into.

What happens if I can’t pay?
Unfortunately the councils of the UK aren’t very lenient when it comes to not paying your council tax. So, if you have claimed all of the benefits and exemptions that you can and you still can’t afford to pay you either need to talk to a professional advisor, possibly at the Citizen’s Advice Bureau or you need to make an appointment with a Council Tax advisor at your local council offices. It’s important that you don’t fall behind with payments because it gets harder and harder to catch up and the councils rarely grant a lot of leeway with regards to missed payments.

Check out our page entitled ‘Tip Tips for Reducing Council Tax’ to see if there’s anything you can do to save yourself money.