Introduction

How are charges determined? 

Due to powers awarded to them, councils can classify council tax as a priority debt. The actual charge levied on the property will depend on several factors. You can view a breakdown of these costs on your statement. You have a liability to pay the Council Tax in certain situations even though you do not live in the property. For example, you might have a property that you use as a holiday home, or the property is categorized as a house of multiple occupations (HMO). The money you pay is based on your council band, which is a reflection of the property value – the more your property is worth the more you are deemed to be able to afford.

 

What does it pay for?

The money is collected by your local district council and funds are disbursed to other service providers. Details from a typical council (South Holland District Council) show that out of a collection of £1209

• £909 is sent to the county council;
• £177 is sent to the Police; and
• £123 is kept by the district council.

A good breakdown of how district councils spend the money can be seen at: -

https://www.sholland.gov.uk/media/18608/CTAX-Factsheets-2021-22/pdf/SHDC_CTAX_Factsheets_2021_to_2022.pdf?m=637516744851900000

 

Avoiding Council Tax Arrears 

Councils promote the use of direct debit. This limits any personnel requirements on their part and ensures that you do not fall into arrears, thus reducing the possibility of court action. An arrangement such as this is particularly useful if the home is left unoccupied for long periods. If you neglect Council Tax arrears, the council may issue court proceedings to recover the debt.