Four ways including Universal Credit which could mean you pay NO council tax
STRUGGLING households could be eligible to get 100% of their council tax bill paid off.
There are several ways that people, including those on Universal Credit, can get big discounts or end up paying no council tax at all.
With rising bills and prices leading to wallets being squeezed, we’re all looking to save money where we can.
The amount Brits owed in late council tax payments grew by £510million in the last year alone.
Plus, local authorities were given the green light to raise the levy by as much as 5% from April.
If you’re on a low income or claim benefits, it means a council tax reduction could make a huge difference to your monthly budget.
The discount you get depends on a number of factors, including where you live, your income and your savings.
Below we explain who can get a reduction, and who in some cases have their council tax bill completely wiped.
Single people
If you live by yourself you can get a 25% discount on your council tax bill.
This is also the case if there is one adult and one student living together in a home, or there is one adult and one person classed as severely mentally impaired in the property.
If you live with a carer, who don’t pay council tax, you could get a reduction of up to 50%.
On top of this, if you live in an all-student household, you could get a 100% discount.
A full list of circumstances that exempt you from paying council tax can be found on Citizens Advice.
Retirees
Those who have reached retirement age can also get a council tax reduction.
Plus, if you receive the Guarantee Credit element of Pension Credit, you could even get a 100% reduction.
You can get extra help if you’re on a low income as well.
For example, retirees with less than £16,000 in savings could be eligible for a discount.
The reduction which single people can claim is also available to pensioners, so if you’re a retiree living alone, you can get 25% off.
Low income households
Households with a low income or which receive benefits may also qualify for a reduction on their council tax.
But what you are entitled to will change depending on where you live.
Those on Universal Credit for example could be eligible for up to 100% off their council tax bill.
But again, this depends on where you live and what your local council’s policy is.
The quickest and best option will be to check with your council.
You can find out which council you would need to contact by using the government’s website.
But make sure any information you get is clear – council tax is a priority bill which means if you fall behind you might have to pay the full year’s balance in one go.
Non-payment can result in bailiffs, court action or prison as well – so it’s best to be prepared.
Second homes and empty properties
You usually have to pay council tax on a property you own or rent that’s not your main home.
But your council can decide to give you a discount.
Also, if you’re selling a property on behalf of an owner who’s died you don’t need to pay tax until after you get “probate” – the legal right to deal with someone’s property.
After you have probate, you may be able to get a council tax exemption for another six months if the property is both unoccupied and still owned and in the name of the person who died.
You should contact your local authority to see if you could be in with a chance of a discount.
For more information, you can go to the government’s website.
Disabled people
You could apply for a council tax discount or exemption if you or someone you live with is disabled.
But you’ll have to show you have either an extra bathroom, kitchen or other room that you need for the disabled person, and/or extra space inside the property for using a wheelchair.
There are also occasions where you can get a discount if you or someone you live with is severely mentally impaired.
And you could get a 100% discount if you qualify as severely mentally impaired and one of the following applies:
- you live on your own
- any other adults in your household either qualify as severely mentally impaired or are full-time students
You could also be in line for other lesser reductions but this depends on your specific circumstances.
To find out more, you can visit the government’s website.
How to apply for a reduction
You can apply for a reduction through the Government website.
You’ll need to have your National Insurance number, bank statements, a recent payslip or letter from the Jobcentre, and a passport or driving licence to hand.
If there are other adults in the household, you might need the same information for them too.
You can check what council tax bracket your home falls in by entering your postcode on the government website.
Check which local authority you live in to find out how much your council changes for each band, as it varies.
You could also potentially get your house re-banded if you think you’re overpaying on council tax.
To do this, you’ll need to check which band your neighbours are in and work out how much your property was worth in 1991, as this is when council tax bands were decided.
MoneySavingExpert has a free calculator tool to help you do this.
Be warned though – applications are not always successful, and you could even end up being moved to a HIGHER band and paying more.
If you want to go ahead with a challenge, you can contact the Valuation Office Agency (VOA) in England and Wales or the Scottish Assessors Association (SAA) in Scotland.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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