When Should Council Tax Be Paid?
When Should Council Tax Be Paid?
This blog answers the question “When should council tax be paid?”. It states the categories of people on whom council tax is due which is pretty much everyone over the age of 18 years (living in their own residence) and the tax is based on the value on which the property would have been sold on the open market on 1st April 1991. We also look at the dangers of missing council tax payments.
When Should Council Tax Be Paid?
You need to pay council tax starting from April when the bills are sent out, usually in 10 installments. The choice of dates available are the 5th, 15th, 20th and 28th of each month. The monthly payment must not be missed and the yearly figure of council tax should be reached within 12 months or 10 (as agreed).
A lump sum can also be paid on the 1st of April or in 2 payments on the 1st of April and 1st of September.(the 2 months when council tax is not paid are February and March)
Every house receives one council tax bill and is placed in one of eight council tax bands. Your council tax bill should show the full amount of tax for the property for the entire year along with any reductions.
The property being billed for council tax should be a chargeable dwelling
What happens if I miss my Council Tax due date?
Firstly you will be served a 7 day reminder notice and at the end of this time if you still haven’t paid, you will be paying the entire year's council tax. There are a maximum of 2 such reminders in a year (running from April 1st to March 31st the next year). If you fail to pay the entire year’s tax the council can ask the magistrate for a liability order. You can go to court and explain the reasons for your non payment, if they are acceptable ones.
If this is not the case and the reasons you give to the council for missing the payment are not accepted the council can apply to take money from your Universal Credit, Income Support, Pension Credit, Jobseekers Allowance and Employment and Support Allowance.
Beyond this the Council can send bailiffs to seize your property if there is no other way to recover your council tax through legal proceedings.
What taxes do I have to pay on my veranda?
The construction of a veranda can be part of the expansion of a house. As owners, we therefore have questions about the tax liability associated with this type of project.
All property owners who are taxable must pay property tax. This is a property tax collected for the benefit of local authorities (municipalities, departments, regions, etc.). The property tax concerns all built buildings, i.e. housing, dwellings and immediate outbuildings.
The council property tax contributes to the budget of local authorities. This is a local tax payable annually, the rate of which is set by the local authority. The tax rate varies according to the type of property: built building, social housing, bare land, etc.
The construction of a veranda makes it possible to obtain more space in the dwelling, which increases its land value. Therefore, the construction of a veranda will have an impact on your property tax. The declaration of the addition of a veranda must be made by the owner to the tax authorities within 90 days from the end of the construction.
Calculation of the veranda tax
Depending on the nature of the use of the veranda, the calculation of the tax may be different. So specify if the room has central heating or if it is an unheated/uncooled room. It should be noted that cases of property tax exemption exist according to well-defined parameters (in the case of the construction of a house, the property tax can be temporarily exempted for two years to : people over 75 under certain conditions, disabled people, buildings near dangerous sites, etc.).
If the property tax is only charged to the owners of real estate, the housing tax is on the other hand applied to the occupant of a dwelling. Following the addition of a veranda, the amount to be paid will be greater. Indeed, installing a veranda makes it possible to enlarge the house, and therefore the living space.
The council tax is a local tax, the amount of which depends on the characteristics of the accommodation, its location and the personal situation of the person occupying it on 1 January. The council tax is applied to the occupant of the accommodation, whether he is the tenant or the owner.
It must be paid, even if the property is only occupied for a short period of the year. The amount of housing tax is calculated from the cadastral rental value of the dwelling and its outbuildings.
Environmental considerations when building the veranda
The construction of a veranda or an extension requires the realization of a preliminary study in order to make the most of the environment of the house and its configuration. The materials used must also be chosen with care in order to optimize thermal comfort, whatever the season. The design of the roof varies according to needs and budget: opaque, glazed… The price of a veranda or an extension thus evolves according to the materials used, the surface, the size of the project, the options.
For the construction of a veranda or an extension, administrative procedures must be carried out with the town hall. For structures not exceeding 20m², a prior declaration is sufficient. In the event that the floor area of the structure exceeds 20m², a building permit becomes necessary
Only owners are liable for the property tax on built-up properties for their residences (main and secondary), as well as for the housing they rent out.
Moreover, land other than that forming an outbuilding is subject to the property tax on unbuilt properties.
If you own a building plot or an agricultural property, you will receive a separate tax notice. However, there are many exceptions, as well as specific abatements.
The property tax is established for the current year
What conditions determine the final value of this tax?
The property tax is based on your situation on April 1st of the year (April 2021 for the 2021 property tax). If you have just bought your apartment or house and did not own it last year, you will not have to pay anything this year. Conversely, if you sold your property at the beginning of the year, the tax will be assessed in your name for the entire year.
However, in either case, it is likely that the deed of sale will have provided for a division between the buyer and seller in proportion to the number of days each will have been the owner.
As with the council tax, the council property tax is calculated on the basis of the rental value of the property, but only half of this value is taken into account in order to take into account the specific costs that you incur as an owner: management, maintenance, repairs, insurance, etc.
The property tax must be paid by the deadline indicated on the tax notice sent at the end of the summer, i.e. by 10th January, 2022, depending on the payment method chosen.
You have until :
October 15 if you pay in cash, by check, interbank payment voucher or transfer at a tobacconist or partner approved by HM Treasury
October 20 at midnight if you pay online from the website or the mobile application from the tab "pay my taxes". The tax will be debited from your bank account on October 25.
Please note that when the amount of tax is over £300, you must pay online or by direct debit.
If you have chosen to pay by direct debit, your tax will be taken automatically on October 25. You can still subscribe to this payment method by going to your personal space on the website before September 30.
If you received your notice by post and it includes a direct debit enrollment stub, simply return the enrollment to your collection office (mentioned on it) before October 15. Your enrollment in direct debit for this year is also valid for the following years.
What is the penalty for late payment?
You will be charged a penalty of 10% of the tax due. The penalty applies if you have not paid your tax within 45 days of the date of collection.
Who pays the housing tax in cohabitation ?
For the calculation of the resources, the tax services take into account the sum of the incomes and the number of shares of each of the 2 co-tenants.
You are jointly responsible for paying the tax. This means that HMRC can ask any of the cohabitants to pay the full amount.
If you live in a shared apartment, only one tax is established, in the name of one of the
roommates. It is therefore this occupant who must pay the council tax.
HMRC does not take care of the distribution between the co-tenants.
It is possible to indicate a second occupant on the notice of council tax. You must send a
request for joint taxation to your personal tax department, so that the tax is established in both
names.
Click here to learn how to pay your council tax online
Council tax collections in recent years
The 'housing tax' a set of compulsory levies paid by households occupying a property - whether
they are individuals occupying a residence - whether they are owners or tenants - in the local authority levying the tax, which the territorial authority levying the tax, which is the local council
Updating the Council Tax Allowance For a Dependant Child
Where the dependant child has founded a separate household
In principle, married children over 18 years of age are taxable as a separate household.
in the form of a separate household.
However, these children may ask to be attached to the tax household of their parents if they are
their parents' tax home when they are :
under 21 years of age ;
under 25 years of age and in education
performing military service regardless of age;
disabled persons.
The household must then include in its taxable income any income received by the child
child and, if applicable, his or her spouse, during the year in question. In return, it benefits from a deduction, from an allowance on his/her taxable income for each of the persons taken in charge.
The amount of the allowance is set so as to provide a tax advantage
at the most equal to the advantage provided by a half share of the family quota
A recent provision in the law increases the amount of the allowance by 1.8%, bringing it to 27,990 pounds.
The cost of this measure to theHM Treasury is estimated at 60 million pounds
It concerns about 6,000 taxable households.
Case of council tax on property owned by spouses
Property tax on real estate is payable by the owner or owners of the property in question. Consequently, the marital status has no impact on the assessment of the property tax.
It should be noted that spouses are not jointly and severally liable for the payment of property tax.
In the case of dismemberment of ownership, it is the usufructuary who is liable for property tax. But not the holder of a simple right of use and habitation.
Deadline of payment of council tax for non-residents
In principle, the deadline for payment of council tax for non-residents is 10th January (this deadline also applies to second homes). This payment deadline is indicated on your tax notice.
You benefit from the payment deadline if you pay online by smartphone or tablet.
The tax will be debited from your bank account. You are informed of the date of debit when you register your payment order.
Conclusion
This blog post addressed the question “When Should Council Tax be Paid?” Council Tax is applicable to everyone who owns a property (individually or jointly) and should be paid in 10 installments, each with a fixed monthly date or better still in a lump sum on the 1st of April each year. It is very important for you to know and remember when your council tax should be paid.
Please feel free to comment on the content or ask any questions in the comments section below:
Frequently Asked Questions (FAQs): When Should Council Tax Be Paid?
How can I pay my Council Tax?
Council Tax is payable by 10 monthly installments by the first day of each month starting from April. Payments can be made:
Through Direct Debit
Online
In Person
Through Telephone via credit card
By Post through check
What Happens if I don't pay (Council Tax)?
If you don’t pay council tax it is likely that your council will take you to court to recover all the money at once. You will need to pay court fees etc which can add hundreds of pounds to your debt overall. Also your employer can be forced to make deductions from your wages in this case. There is a final notice for missing a payment which needs to be responded to within 7 days before the council starts court proceedings and makes you pay the whole year’s council tax. You must tell the council why you are not liable to pay if you have a good cause to avoid a legal case against you.
Your council can also apply to take money from the following benefits:
Employment and Support Allowance
Income Support
Jobseeker’s Allowance
Pension Credit
Universal Credit
Why am I being charged 200% for my empty property?
Land that has been empty for 2 years or more will have an additional premium of 100% applied to it, this is 200% of your property’s value, in total. For a period of 5 years or more the premium rises to 300% and 400% of the land value for 10 years and over of the property being vacant.
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