Council Tax Explained: Bands, 12 Payments and the 25% Discount

Council tax is the charge your local council makes on your home. How much you pay depends on three things: your home’s valuation band, the amount your council charges for that band, and whether you can get a discount or exemption. Most people pay it in 10 monthly payments, but in England you have the right to ask for 12, and if you live alone you get 25% off.

This guide covers how the bill is worked out, how to make the monthly payment smaller, and who pays less.

How your council tax bill is worked out

GOV.UK lists three things you need to know:

1. Your home’s valuation band. Every home in England and Wales sits in a band. You can look up yours by address or postcode with the GOV.UK “Check your Council Tax band” service.
2. The amount your council charges for that band. Each council sets its own rates, so the same band costs different amounts in different places.
3. Whether you can get a discount or exemption from the full bill.

You usually have to pay council tax if you are 18 or over. A full bill assumes at least two adults live in the home, which is why people living alone pay less.

Think your band is wrong?

The same GOV.UK service lets you challenge your band if you think it is wrong. If you are planning changes to your home, the Valuation Office can tell you whether they would affect your band.

How to pay over 12 months instead of 10

Council tax is usually split into 10 monthly payments, so two months of the year have no payment and the other ten carry the whole bill.

In England you can ask to spread it over 12 months instead. The rule comes from the Council Tax (Administration and Enforcement) (Amendment) (No.2) (England) Regulations 2012, which came into force on 1 April 2013. You make the request to your council in writing, and you can do it before or after your bill has been sent.

How to do it:

1. Find the council tax page on your council’s website.
2. Look for “pay in 12 instalments” or “pay over 12 months”. Councils such as Richmond have a short online form for it.
3. Keep paying your current amount until the council confirms the change.

If you apply partway through the year, councils such as Richmond spread what is left over the remaining months until March.

Here is a worked example. Say your bill for the year is £1,440. Over 10 months, that is £144 a month. Over 12 months, it is £120 a month. The total is the same; each payment is £24 lighter.

The 25% single person discount

You get 25% off your council tax bill if you pay council tax and either:

• you live on your own, or
• everyone else in your home is disregarded.

People who are disregarded include those who are 18 or 19 and in full-time education, full-time students at college or university, and under-25s funded by the Education and Skills Funding Agency. GOV.UK lists the full set of groups.

To claim the discount, use the GOV.UK “Apply for a Council Tax discount” service, which sends you to your own council. Check with your council if you are not sure you are eligible.

Students

Households where everyone is a full-time student do not have to pay council tax at all. If a bill arrives anyway, you can apply for an exemption through the same discount service.

Council Tax Reduction for low incomes

If you are on a low income or claim benefits, you could be eligible for Council Tax Reduction, which some councils call Council Tax Support. It is a discount on your bill. Each council runs its own scheme, so the rules and the amount differ from place to place, and you apply to your local council. Northern Ireland has a different scheme.

This is separate from the 25% single person discount. If money is tight, ask your council about both at the same time.

What to check on your council tax bill

When a new council tax bill arrives, check four things:

1. Your band is the one shown for your address on GOV.UK.
2. Any discount you get, such as the 25% single person discount, is applied.
3. The payment dates match what you expect, and whether you are on 10 or 12 payments.
4. The first payment date is one that works with your payday.

If anything looks wrong, contact the council before the first payment is due.

If you are struggling to pay

Contact your council as soon as you can. GOV.UK says councils can help, for example by spreading your payments over 12 months instead of 10. If you fall behind, the council can take action to recover what you owe.

Citizens Advice lists council tax arrears as a priority debt in England, which means it can cause serious problems if you ignore it. The council can take you to the magistrates’ court. Our guide to which bills to pay first explains the order to deal with debts in.

Put council tax on your bill list

Council tax is easy to forget because, on the 10-month plan, it stops for two months of the year and then starts again. Put it on your bill list with the date it leaves your account, and update the amount each April when the new bill arrives. A bill tracker like Billo can remind you 3 days before each payment so the date never catches you out.