How is Council tax calculated?
The government has announced that they will be increasing the cost of council tax due to the rate of inflation in the UK.
How they calculate your council tax
The cost of Council tax is determined from the valuation of the property from 1991 in England and Scotland and 2003 in Wales. If your property did not exist then it would have a valuation completed by the Valuation Office Agency (VOA). New builds will be compared to similar properties in the area.
The VOA value the property based on…
- Size
- Layout
- Character
- Location
The property will be placed in a band where Band A is the cheapest through to Band H which is the most expensive.
Council tax varies depending on each county and the needs for the area. Your local council will set the price for each band’s council tax bill.
Council needs include, street cleaning, community infrastructure, the police and fire services in your area, street lighting, rubbish collection and more.
How you pay your council tax
If you are moving into a house soon and are unsure how council tax works, there is no need to panic. Once you move into the property you will be sent a letter from the government with your council bill included along with the process to pay it. You will be sent this letter once a year in April when you expected to pay, you should then set up direct debits to ensure this is paid on time.
The payments are usually split into 10 monthly payments form April- January starting from the month you possess the property.
You can pay your bill online, or alternatively there would be pay points in your area, such as, the post office.
Extra costs of buying a house such as council tax is why it is important to understand how much of your salary should be spent on your mortgage so you can afford all the costs included in moving into a house.
Can I get a reduction?
You could be eligible for a reduction or exemption from council tax if you meet the criteria below.
- You are on a low income
- You are a student or live with t a student
- You live alone or are the only adult in the property
- You are a member of the armed forces
- You have a severe mental impairment or live with someone who does
- You have moved into a care home or the hospital