Council tax is a tax that you pay to your local council so they can fund services in your community. What you pay depends on where you live and the valuation band of your property. The current tax bands and qualifying valuations are as below:
|Council tax band
|Up to £40,000
|£40,001 to £52,000
|£52,001 to £68,000
|£68,001 to £88,000
|£88,001 to £120,000
|£120,001 to £160,000
|£160,001 to £320,000
|More than £320,000
Every property in the UK is put into a council tax band. This band is based on size, location, and the property’s value in 1991. The tax is then set as a fixed amount for each band. A few things can affect your bill amount:
If you’re self-employed and working from home, you can claim a proportion of your council tax. What you claim should be based on the number of rooms you use for your self-employment business, and how much time you work from home. If you work from home for more than 25 hours per month, you may be entitled to a Home Office Allowance. This may reduce your council tax bill as your property is partially used for working, however this does have to be deemed ‘reasonable’ by HMRC. For example, you can’t claim that your living room is an exclusive workspace, as HMRC will presume that you also use it largely for leisure rather than a home office alone.
If your calculations are not deemed to be reasonable, they will be flagged and you may receive a penalty charge. To avoid this, contact our experts today for impartial advice!
We know that you are unlikely to know the value of your home over 30 years ago off the top of your head – especially if you are a renter or live in a property that didn’t even exist in 1991! To find your council tax band, you can check your local council’s website which will include a council tax calculator, or check your most recent bill which will note your band.