Council tax reduction and change of circumstance (for the better)

edited 30 November -1 at 1:00AM in Reclaiming Mortgage Fees, Council Tax, etc
2 replies 1.6K views
dayzee_2dayzee_2 Forumite
48 Posts
Apologies this is confusing to explain.

Does anyone know how council tax reduction works? Especially when your circumstances change to no longer qualify for the discount?

I am confused. Below is my latest council tax letter which takes into account between 1-April and 15-June I was unemployed and therefore on council tax reduction.

Balance Brought forward -£41.63 (negative number)
Charge for Period £1,153.79
Single occupancy -£288.43 (negative number)
Council Tax reduction -£13.27 (negative number)
Payments at date of issue -£132.58 (negative number)
Due - £677.79

My understanding is. If I was on the discounted rate for 2mths (for ease) I would pay 8mths council tax at full price, and 2 months would be at a lower rate?

In theory meaning my full council tax for the year (charge minus single discount) is £865.36. Divided by 10 months is £86.53 a month. I would then pay 8mths at 86.53 and the 2 months at the reduced rate of £7. Making my council tax = (86.53 x 8) + (2 x £7)

Based on the calculations from my council, because I paid the reduced rate, I pay for 10mths, and they give me £13 off my total council bill. Meaning for the 2 mnths I was unemployed I am still at the normal rate. This does not feel or sound right.

Can someone explain how it works? Am I right in my thinking?

Replies

  • elmerelmer Forumite
    872 Posts
    Part of the Furniture 500 Posts
    ✭✭✭
    Council tax is a daily charge, so your calculations need to be in days not months.

    There is no correlation between the the monthly instalment and the calculations you have done.

    elmer
  • CISCIS Forumite
    12.1K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    As elemer says, it's calculated on a daily rate.

    That being said though, £13.27 council tax support for 10 weeks of unemployment is very low - you need to query the amount paid.
    In theory meaning my full council tax for the year (charge minus single discount) is £865.36. Divided by 10 months is £86.53 a month. I would then pay 8mths at 86.53 and the 2 months at the reduced rate of £7. Making my council tax = (86.53 x 8) + (2 x £7)

    The whole remaining balance is spread over the number of instalments remaining - if for example your full charge was £865.36 over 10 months it would be 9 months at £86.00 and 1 at £91.36.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
This discussion has been closed.
Latest MSE News and Guides

Lloyds Bank wrongly declares customer dead

Account was closed due to a misreading

MSE News

Cheap home insurance

Grab 100+ buildings insurance quotes & cashback

MSE Guides

£12 for 1L Baileys

Available at Tesco, Morrisons & Asda

MSE Deals