Paying Council Tax in Twelve Monthly Instalments

loveandlight

I contacted my local council today to see if I could spread my council tax payments over 12 months instead of 10 months to help improve cashflow. They said no as they are 'not legally obliged to'. So in case anyone else comes under Solihull Council and is thinking of asking the same question, I wouldn't bother.:mad:

dansylvester

I Work for a council, and we are not legally obliged to offer any alternative payment plans, however we offer weekly over 10/12 months, and monthly over 10/12 months.

If you pay by DD however, most councils will restrict what payment dates you can have.

We also only allow one payment plan change per Ctax year.

poppycracker

Aberdeen don't do it now either.

dansylvester wrote:

however we offer weekly over 10/12 months, and monthly over 10/12 months.

That's what we want to do, pay monthly over 12 months..... so why can't we?

hodgester

you can't because council tax is due in full, immediately on April 1st, however there is provision within the legislation to pay over 10 instalments. Your council will need to pay the Government back the council tax due for the year in 10 instalments as well.

So, if the council has to pay back say 5 million to the council (ie 40,000 instalments averaging 125gbp) in April and you and thousands of other want to pay over 12 months then, for April there will be an underpayment based on your group paying 1/12th rather than 1/10th.

To make up the shortfall to the government, your council will need to borrow money which, of course, incurs interest charges. the more money your authority needs to borrow, the more it needs to charge the following year to make up the losses from capital.

It may be called 'council' tax but it's still a government tax. but because it's called council tax if you don't like it you moan to your local authority unlike the 'poll tax' which you blamed the government for, but was still collected in the same way.


Who said Labour invented spin?

loveandlight

Well there are a lot of councils throughout the U.K. who do allow payment over 12 mths and it's thanks to this site that I found out about it, otherwise I wouldn't have even bothered asking in the first place. It cannot be right that some councils allow council tax payments over 12 months and others don't. It should surely be the same for all of us regardless of where we live.

sillyvixen

my council dont allow payments over 12 months only 10!! severn trent take dd payments over 8 months!! why?? every other dd scheme goes out monthly why do my local council and water company expect money in advance!

ScarletBea

I've just registered for paying my council tax through direct debit over 12 months - it's Kirklees.

poppycracker

:mad: :mad: :mad: :mad: :mad: @ councils in general

A_Nice_Englishman

hodgester wrote: »

you can't because council tax is due in full, immediately on April 1st, however there is provision within the legislation to pay over 10 instalments. Your council will need to pay the Government back the council tax due for the year in 10 instalments as well.

I never knew Council Tax was paid to the Government. In fact I was under the impression that a large proportion of money spent by Councils actually came from central Government and out of general taxation (Income Tax, National Insurance, VAT, etc etc)

*Louise*

Our council started allowing payment over 12 months just 2 years ago - but only as long as you pay by DD.

hodgester

A_Nice_Englishman wrote: »

I never knew Council Tax was paid to the Government. In fact I was under the impression that a large proportion of money spent by Councils actually came from central Government and out of general taxation (Income Tax, National Insurance, VAT, etc etc)

we pay the council tax to them and based on how well we do, they give us a proportion back as our grant for the year. typical central government b0ll0x

silly vixen - see my first post as to why it is requested in advance...

loveand light - you are right. depends on the authority's political persuasion and financial status usually. i can even depend on the individual officer's willingness to bend the rules.

My authority and I don't allow it. But then we have the lowest increases annually in our county, which benefits everyone, rather than just those who try it on, with all due respect.