Council tax is a system of local taxation collected by local authorities. It is a tax on domestic property and is used to pay for local services. Some property is exempt from council tax, some people do not have to pay council tax and some people get a discount.
It has been in the news recently with the Government promising a £150 ‘council tax rebate’ for those in valuation bands A-D for the upcoming financial year, and alternative support for those unable to access the rebate.
While the details of how the ‘rebate’ and alternative support will be distributed by local councils are still unclear it is important to remember what Council Tax is, why you are required to pay it, and how you might reduce your liability if certain circumstances apply to your household.
Below is a summary of some of its key features.
Valuation bands
All homes are given a council tax valuation band. A different amount of council tax is charged on each band. Each local authority keeps a list of all the domestic property in its area, together with its valuation band.
Finding out what band a property is in
You can check your council tax band on GOV.UK or you can find it on your council tax bill.
Properties exempt from council tax
Some property is exempt from council tax altogether. It might be exempt for only a short period, for example, 6 months, or indefinitely.
Who has to pay council tax?
Usually one person, called the ‘liable person’, has to pay council tax. Nobody under the age of 18 can be a liable person. There are other ‘exempt categories’.
Couples living together will both be ‘jointly and severally liable’ – this means they are responsible as a couple but also individually. This is the case even if there is only one name on the bill and applies if the couple is married, cohabiting or in a civil partnership.
Check if you can pay less council tax
You might be able to get a discount or reduction if, for example, you:
- have no income or a low income
- are disabled
- live alone.
If you are making an application for Universal Credit (UC) be sure to press the button stating you pay your own housing costs (ie rent). This will trigger a question from your UC work coach about Council Tax Support (CTS) and may trigger linked action from your local council.
However, Council Tax Support is a welfare benefit administered by your local council to help you with your council tax liability NOT the Department for Works & Pensions (DWP) through UC.
If you do not tell the DWP about paying your own housing costs they will not talk to you about Council Tax Support and you may end up in council tax arrears.
If you are on a low income, or you are not sure of your possible CTS entitlement, you must make sure you contact the local council directly about Council Tax Support.
For more details about your entitlement to discounts check your local Council’s website – see below.
Paying council tax in Coventry
In Coventry, Council tax bills are sent out in March. You’re usually asked to pay in 10 instalments. You have the right to ask to pay in 12 instalments instead. The council might accept weekly or fortnightly payments. They might also offer a reduction in the total bill if it is paid all at once, at the beginning of the year.
There is an online claim form which can be found at – https://www.coventry.gov.uk/benefits-1/housing-benefit-council-tax-support/3 – alongside other local information about Council Tax.
In Coventry, if your household is classed as being of working age, then you will need to pay at least 15% of your council tax bill regardless of your income. You could then receive help with the remaining 85% depending on your income and the make-up of your household – but only if you apply for council tax support – see above.
Pension age households can receive up to 100 per cent support depending on their circumstances.
A 25% discount applies to all single households. Exemptions also apply for people who are severely mentally impaired and live on their own.
For more information about council tax in Coventry call 02476 83 1800 or email benefits@coventry.gov.uk ; or visit Broadgate House Customer Service Centre, Broadgate, Coventry CV1 1FS.
Council tax arrears
If you’ve missed a Council Tax payment, you’re in ‘arrears’ – this means you owe money to your council.
For more information about what to do if you are in council tax arrears either visit the following website – https://www.citizensadvice.org.uk/debt-and-money/help-with-debt/dealing-with-urgent-debts/dealing-with-council-tax-arrears/ – or contact your local Citizens Advice office.
Recovery action can be taken against you once the council has proven your liability via a Liability Order from the Court. Early contact with the council will always be in your best interests.
If you think your council tax band is wrong
Contact the Valuation Office Agency (VOA), the organisation responsible for allocating a valuation band to your property, and ask them to review your band.
If you don’t agree with the VOA’s review
You can make a formal application to challenge your council tax band.
Appealing a council tax decision
If you’ve complained to the VOA or local council, and you’re unhappy with the result, you can write to the valuation tribunal to make an appeal.
Particular circumstances
Beyond the policies and practices applicable to mainstream cases mentioned above, there are things to remember if:
- you live permanently in a hotel or hostel – you won’t be liable for council tax on the property
- you live permanently in a caravan or mobile home – you will pay the council tax
- you have a caravan that you let out as a business – you have to pay business rates, not council tax
- you have a towing caravan which you keep at your home – you won’t be subject to either council tax or business rates
- you’re a student – for more information on students and council tax go to https://www.citizensadvice.org.uk/housing/renting-a-home/student-housing/students-in-private-rented-accommodation/student-housing-council-tax/ or contact your local Citizens Advice office.
Council Tax is a ‘priority bill’, which means non-payment – particularly if wilful – can see you taken to court and significant recovery action taken against you even, in exceptional cases, up to imprisonment.
It is always in your interest to make contact with your local council (or your local Citizens Advice office) if you have any questions about your liability, your entitlement to discounts or, especially, if you find yourself in arrears.
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Note: much the information above is publicly available from a combination of two websites – see below.
https://www.coventry.gov.uk/benefits-1/housing-benefit-council-tax-support/3
https://www.citizensadvice.org.uk/housing/council-tax/paying-council-tax/
The information above was accurate at the time of publication.
