Council tax bill warning for millions of households as cost of living rises

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MILLIONS of households are struggling to pay their bills amid the cost of living crisis.

But there is one payment in particular that you should avoid falling behind on, as you could be asked to pay thousands of pounds upfront.

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Council tax is a priority bill and not paying can cost you more up frontCredit: Alamy

Council tax is one of the biggest bills Britons shell out in cash – and the one we struggle the hardest to pay.

Council tax was the most common type of arrears among people struggling with debt last year, according to Stepchange.

More than a third of people seeing help from the charity were behind on their council tax bill, with the average amount due being £1,578.

But it’s called a senior debt, which means it has some of the worst consequences for non-payment.

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Failure to pay it can result in legal action or even imprisonment in the worst case scenario, and local authorities also have the power to send bailiffs to your home.

Usually, you pay the council tax in monthly installments over 10 or 12 months.

But if you are late, you may be asked to pay the entire outstanding balance at once.

With new bills just sent out at the start of the tax year to thousands of taxpayers, that means you could be responsible for the entire 12 month bill if you’re falling behind right now.

Households in difficulty can obtain additional assistance with municipal tax bills.

If you’re worried about falling behind, it’s worth checking out what you might get.

If you can’t make a payment, it’s best to let the council know immediately rather than postpone it, so you can agree on how to pay.

Additionally, they can tell you about any available help that you are not getting but are entitled to.

Help you can get to pay your council tax bill

You may be eligible for Council Tax Assistance (sometimes called Council Tax Reduction) if you are on a low income or receive certain benefits.

You don’t need to own your home to apply for council tax assistance, and it doesn’t matter whether you’re working or unemployed.

The amount you could get a reduction on your bill depends on your personal circumstances, including:

  • Where you live
  • Your situation (e.g. income, number of children, benefits, residency status)
  • Your household income – this includes savings, pensions and your partner’s income
  • If your children live with you
  • If other adults live with you

You can also get a backdated reduction in your council tax bill, but again, this depends on your personal circumstances and where you live.

As each board offers different support, you will need to contact your local authority directly for more information, including how to apply.

Reductions and exemptions from housing tax

There are a number of reductions and exemptions you may be entitled to if you are struggling to pay your council tax.

For example, if you live alone or with someone who is not considered an adult, you will receive a 25% discount on your total annual bill.

You’ll also typically get a 50% discount if no one living in your home, including you, is considered an adult.

Plus, you won’t have to pay anything if everyone in your household is a full-time student.

Who does not count as an adult?

  • Children under 18
  • Full-time students, mostly apprentices and trainees under 25
  • Nursing students
  • British Council Registered Foreign Language Assistants
  • People with severe mental disabilities, such as learning disabilities or autism
  • Live-in caregivers who are caring for someone who is not their partner, spouse or child under 18
  • Diplomats

Contact your town hall to check what help you are entitled to.

£150 council tax rebate

Councils are starting to pay out £150 to millions of struggling households.

Eligible households will automatically receive the money in their bank accounts if they have set up direct debit to pay the bill.

Otherwise you will have to claim the money from the council – everyone will have their own way of applying.

About one in four households will receive the payment because they live in municipal AD tax brackets.

You can find out which group you are in using the government research tool – just enter your postal code.

Anyone not eligible for payment can still apply for a £150 payment from a £144million discretionary fund designed to help difficult bill payers.

You should check with your town hall to find out how to submit your funding request and for the £150 if you don’t have direct debit.

Suspend council tax payments

Struggling households can suspend council tax and other bill payments for 60 days under a new scheme launched last year.

The respite scheme will protect hardened Britons from bailiffs and lawsuits for two months.

The plan will apply to municipal tax arrears and other unpaid debts, including taxes, overpayments of benefits as well as credit cards and loans.

During this period, households will receive professional debt advice to find a long-term solution to their financial difficulties.

You can find out more about who is eligible and how to apply.

Request money from the Household Support Fund

Your local council may also be able to help you with money and grants if you are struggling with bills through the household support scheme.

It’s a £500m pot doled out to hardened Brits to help with the cost of living and what you can get depends on where you live.

In some areas there is money to cover bills, so you can use it to help pay council tax.

Some places will give money or vouchers to cover specific bills like energy or to buy food.

While you can’t use it to pay council tax, getting this help instead could free up some money to cover it.

To find out what help you can get where you live, you can find your local council using the search tool on gov.uk – just enter your postcode.

Challenge your council tax

Another way to lower your bills is to dispute your municipal tax bracket – but only if you think you’re mistakenly in a higher bracket and paying more than you should.

It should be noted that contesting your council tax is not a surefire way to lower your bills.

You will also need to do your research first as this could result in you and your neighbors having to pay After if you are propelled to a higher band instead

The first step is to check what council tax bracket your neighbors are in, based on homes of similar size and value.

This information is available online and can be checked for free, so you don’t need to ask your neighbors in person.

Use the Gov.uk website to do it for homes in England, or the Scottish Appraisers Association for properties in Scotland.

If you find that you are in a higher tax bracket than your neighbors, you may be able to successfully complete a challenge.

But before you do, another crucial check is to see how much your property was worth in 1991, because that’s when council tax was introduced by the government.

MoneySavingExpert has a free calculator tool to help you do that.

If you want to take up a challenge, you can contact the Assessment Office Agency (VOA) in England and Wales or Scottish Appraisers Association (SAA) in Scotland.

It might be worth doing as a pensioner recently recovered £3,500 in council tax overpayments using a simple online form.

Get free debt advice

In addition to being a priority bill, missing a council tax payment could mean you become liable for your entire annual bill at once.

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This means it’s really important to seek advice as soon as possible if you know you’re having trouble paying your bill.

There are many organizations where you can get free debt advice, including:

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