Council Tax - single occupancy 25% discount

tdh3014

Hi, 

I don't know a lot about this so hopefully somebody on here can clarify that the council are correct and I am terrible at maths. 

Rather than deduct 25% from the overall annual council tax charge, the council has deducted it after calculating from my move in date to the 31/03/21. This gives me a monthly payment of £119, if I multiply that by 12 I might as well be paying the full rate monthly as that would have been £123.97. If I had hypothetically moved in on the 1st April, based on these calculations, and had a full year my monthly payment would only be £92.98. Surely the 25% deduction should be from the full tax band? 

12 x £119 = £1428 and the full annual amount without discount is £1487.75. So forget 25% discount this is around 4% discount in real terms. Am I just an idiot and missing the point? 

Thanks in advance of any help!

brettcta

They calculate it for the period it’s valid - if you didn’t move in on 1 April, why would they discount it back to the ?

we have it currently and they started it when my wife started uni last year from September to 31 August 2020 - under your idea I’d have had a single person discount from 1 April 2019 - 31 March 2021 despite the fact we were only eligible for half of that.

CIS

Your council tax demand notice will tell you what period the discount has been applied for. If this is not correct contact the council and correct the error. Remember, the discount can only apply where you have been resident in the property, even if you became liable for the council tax charge at an earlier date.

The way it is calculated is as follows;
1) Calculate the full charge:

Divide the total charge by the number of days in the year (365 / 366 in a leap year), to get the daily charge.

Multiply the number of days from when you moved in to the end of the year by the daily charge

2) Calculate the discount:

Divide the total charge by the number of days in the year (365 / 366 in a leap year), to get the daily charge.

Multiply the number of days for which you're entitled to the discount by the daily charge

Multiply this amount by 0.25

3) Calculate the amount due, taking in to account the discount

Take the full charge (1) and deduct (2).

The remaining balance is what is due for payment.

12 x £119 = £1428 and the full annual amount without discount is £1487.75

Unless you became liable for the council tax before 16 April 2020 then you won't have 12 month instalments as there's not time in the year to do so (except in rare cases).

tdh3014

Yes I totally see what you are saying. Thanks for the replies, it is correct that they've applied the discount after calculating the full charge. I thought it was a discount from the full tax band, then calculated for number of days; I have looked elsewhere and it is clear that the discount is from the bill amount (full charge). For me this does mean I will end up paying more this year than next purely based on when I moved. 

CIS

tdh3014 said:

 For me this does mean I will end up paying more this year than next purely based on when I moved. 

Not unless you held the tenancy from before you moved in (or had a period where the discount doesn't apply).

When did you take the tenancy and when did you move in ?

tdh3014

Thanks very much CIS. I had completely missed the point from the start, just checked everything using your advice and the bill is absolutely correct. Sorry to waste everyone's time, and thanks again!