There are 326 councils in the UK which charge an annual fee for the services they provide to residents.
We decided to include a Council Tax calculation line in our forecast because of the varying changes to rates being introduced in 2022/23.
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The amount of Council Tax you pay depends on the band your home is in, determined by the property’s value. It also varies by how much additional funding your council needs to raise. Normally Council Tax is paid in 10 monthly instalments (April-Jan) and two months of not making any payments. In 2022/23 Council Tax is rising across England and Wales by an average of 3%, but that could be as high as 5% in some boroughs.
<aside> ℹ️ If you’re not sure which Council tax band your home falls into, you can search by postcode on the Gov.uk tax band checker. To find your local council, use this one.
There’s really very little you can do to reduce the amount of Council Tax you pay.
If you are in bands A-D you should have automatically received the £150 rebate in April 2022, which was introduced to offset increasing energy prices.
The bands were set in 1991 and it has since emerged that hundreds of thousands of homes were put into the wrong price band. While there are potential savings to be made if you’ve been overpaying, challenging your property’s Council Tax band is not an easy process, and you could even be moved onto a higher rate as a result of the investigation.
<aside> 💡 Money Saving Expert have published a guide on challenging your Council Tax Band.
There are also a range of discounts for Council Tax available to some people based on circumstances, household makeup and certain types of property.
<aside> 💡 Read Gov.uk’s guide on How Council Tax works for more info on discounts and eligibility.
You can also ask your council to spread your payments over 12 monthly instalments rather than 10, to help with cashflow.