A Guide to Council Tax in the UK

What is Council Tax?

In the UK, council tax refers to a type of monetary tax that most residents over the age of 18 must pay.

This tax is normally paid to the local authority (or ‘council’), which may operate on a county, city, borough or district level.

These are local forms of government that are responsible for providing and maintaining services such as education, transport, local planning, rubbish collection and amenities such as local libraries.

Council tax is normally paid in order to maintain these services in your local area.

In this guide, we’ll take you through the basis of council tax in the UK, including how to work out how much you have to pay, how to pay it, and the consequences are if you don’t pay.

Who Has to Pay Council Tax?

Generally speaking, everyone in the UK aged 18 or over has to pay council tax.

There are some cases where an exemption or a discount may apply for those who are ‘disregarded’ from council tax calculations. These ‘disregarded’ individual categories include the following:

• Individuals under 18
• Certain apprentices
• Individuals who are 18 or 19 and are in full-time education
• Full-time students at college or university
• Individuals under 25 and who get funding from the Education and Skills Funding Agency
• Student nurses
• Foreign language assistants registered with the British Council
• Individuals who are severely mentally impaired
• Live-in carers for individuals who are not their partner, spouse, or child under 18
• Diplomats

In addition to these, there are normally discounts available to those who live on their own, disabled people, or for those who are the only non-‘disregarded’ individuals in a household.

It is important to consult guidance from your local council to accurately ascertain what kind of discount or exemption you may be eligible for for your specific household. Councils may also offer discounts or exemptions for individuals or households not listed here.

How Much Council Tax Do I Have to Pay?

How much council tax you have to pay depends on a few different factors, including the following:

• Which council tax band your home is in. Bands are allocated based on your home’s value (real or estimated) as of 1 April 1991 in England and Scotland or 1 April 2003 in Wales
• How much your local authority charges for that particular band
• Whether or not you are eligible for any exemptions or discounts

Council Tax Bands

Council tax bands are represented by letters; these are A to H in England and Scotland, and A to I in Wales.

The A band represents the lowest level of council tax, with each band gradually increasing from there.

You can check which council tax band your property is in by using the online checker tool accessible from the gov.uk website.

As an example, if you live in the city of Leicester and you are in council tax band C, you will pay a total of £2,037.80 in the financial year 2024-2025.

You council tax band may change as a result of certain factors, such as if you make significant changes to your property such by splitting it into flats, start running a business from home, or there are significant changes in your local area.

How Do I Pay Council Tax?

When you move into a new property, you will normally have to notify your local council and register for council tax.

The council will then start sending you council tax bills with information on how much you have to pay, and how.

The methods available to you to pay council tax may vary, but generally speaking, you should be able to pay council tax via the following methods:

• Online through the council’s website
• Direct debit
• Standing order
• BACS
• By phone
• In person at anywhere with a Paypoint or Post Office logo

Normally, council tax is paid through 10 monthly payments every year.

What Happens If I Don’t Pay My Council Tax?

If you miss a council tax payment, you will receive a letter from the council notifying you of this around two weeks after the missed payment date.

If the payment is not made within 7 days of you receiving this notice, you will receive a ‘final notice’.

If the payment is still not made within 7 days of you receiving the final notice, the council will normally apply for permission to forcibly collect the debt from you, which may result in them taking enforcement action.

Enforcement action may involve things such as bailiffs being sent to take items from your home to cover the cost of your debt to the council, or the council taking away a certain percentage of your benefits or your earnings from employment.

In extreme circumstances where it is evident that you are deliberately not paying your council tax and bailiffs have not been able to recover the debt, you may be sent to prison for up to three months.

What Do I Do If I’m Not Able to Pay My Council Tax?

If you’re not able to pay your council tax bill, you should contact your council immediately.

They should be able to advise you on what help is available to you, such as advice from free debt advisors, a reduction in your payments or alternative payment plans.

Do not ignore notices from the council or simply stop paying your council tax bills without notifying the council.

How Can IAS Help?

If you’re new to the UK or planning to move here soon, you may be overwhelmed by the information around you or struggling to get to grips with your new home.

IAS can help. We are an immigration-focused legal firm with experience in working with immigrants, expats and new arrivals to the UK to help assist them with immigration needs.

Whether you need assistance in finalising your visa and immigration details when moving to the UK, need assistance for a close family member or partner, or need additional logistical services to help you settle into the UK, we can help.

We offer a range of services to suit many different cases. To learn more about what we could do for you, reach out to us on +44 (0)333 414 9244 or contact us online today.