Taxes are never a fun subject. We recently covered the £100 fine you’ll get if you don’t file your taxes before the 31 January as well as the hike in council tax set for April 2024. However, we do have some good news. There is a key change with council tax in the two months preceding April which will give your wallet a rest.
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Here’s everything you need to know about the changes with this fee over February and March, and the catches involved in this seemingly money-saving system.
Council Tax ‘free’ over February and March
Council tax pays for parks, social care and bin collections - but it is a hard one to swallow, especially as it increases by 3.99% (the legal maximum) every year without much visible improvement to these services. However, it is not all negative: for most council tax payers, there will be some relief over the next two months.
People tend to forget that council tax is usually paid in 10 monthly instalments, from April to January, meaning that you don’t have anything to pay for two months in the year. As Hyndburn Borough Council explains, these payments are usually made at the start of the month by Direct Debit. This means people often don’t realise that the system ‘gives people two months off paying Council Tax in February and March, sometimes referred to as 'free months'’.
Some people will still have to pay
However, although most people are on the 10-month payment plan, others may split the cost of council tax over 12 months. This way, they pay less, but they do pay every month - including February and March.
It is also worth noting that if you are in arrears, or were late in setting up your payments after moving in, you may have some backlog to pay off. Those bills could be spread over February and March, meaning you won’t benefit from a break in payments.
The average council tax bill for a Band D property changes depending on where you live, so the amount any household will save is variable. In Leeds, for example, people pay around £190 per month. This means that those on the 10-month plan will save around £380 over the next two months on average.
Read more:
⋙ This is how much money you should have in your savings account
⋙ Average £800 boost if you receive Universal Credit or Housing Benefit, here’s how it works
Sources used:
Yorkshire Live: Everyone who pays Council Tax to get hundreds back in February and March
Daily Star: Council Tax 'free' for Brits in February and March – but there's a catch
