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Council tax is a tax collected by local authorities for the services they provide, such as roads, libraries, leisure facilities, refuge collection and street cleaning. It’s billed per property – rather than per person – and how much you pay depends on your property's banding.
Your banding will be a letter from A to H, which depends on the value of your home in 1991 when the assessment was first done. Properties banded as A pay the least council tax (normally around £1,000 a year), and H the most (anything up to about £3,000).
Recently some national newspapers have raised concerns that some properties might have been placed in the wrong band, meaning that their owners could have been paying too much council tax for many years. Consumer groups are urging householders to challenge their banding if necessary.
You can check which band both you and your neighbours are in by contacting the Council Tax Valuations Office (www.voa.gov.uk). If similar properties in the same road turned out to be in a lower band, a successful claim could result in back-payments going as far back as 1993 when the system started.
If re-banding does not apply to you, there may be other ways to get a discount on your council tax. If you live alone, you will be eligible for a single person’s discount of 25%, and if you are a student you do not have to pay at all. If you live with a student, you can get 25% off your bill, and if you earn less than £16,000 you may be eligible for council tax benefit.
Other people who may be able to get money off their bill include disabled people, carers and the mentally ill. Also, some types of property are exempt from council tax or qualify for a discount. Empty unfurnished properties can be exempt for up to six months, and properties that are uninhabitable or being renovated are exempt for up to a year.
Council tax is billed annually by the council where you live. Most local authorities give council tax payers the option of paying the whole bill upfront, in two half-yearly instalments, or monthly either in person, at the bank, over the phone, online or by direct debit. If you miss two monthly payments you lose your right to pay in instalments and will be sent a demand for the whole lot.
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