Tax will be the hot topic in the run-up to the general election as politicians argue over which taxes should go up, which should do down and which should be scrapped. So, to help politicians get an idea of which taxes might be ripe for an overhaul, lovemoney.com asked 1,650 readers which tax they hate the most.
A third (33 per cent) of respondents said they hate council tax more than any other, pushing old favourite inheritance tax into second place with 29 per cent. Sixteen per cent like stamp duty the least, followed by 13 per cent who really detest income tax. Nine per cent of respondents loathe VAT more than any other tax.
Two in five respondents (39 per cent) would like to see the number of council tax bands increased so that owners of more expensive homes pay more, but a third (34 per cent) would like to see it scrapped altogether.
Council tax isn’t going anywhere for the time being at least, but you can still try and pay less with lovemoney.com’s top tips for cutting your council tax bill:
Make sure you are in the right band
You might find that even though they live in a similar or identical house, your neighbours are paying a lot less than you.
Appeal, appeal, appeal
If you do find you’re in a higher band than many of your neighbours, you can make what’s known as a proposal – in other words, a formal application to have your band changed. If you’re successful with your claim, you’ll be entitled to a refund of your overpayments from when you moved into the property. But be warned – if you are not successful then your band may go up and you might end up paying more!
Discounts and exemptions
Even if you are in the correct valuation band, there are other ways to get a discount on your council tax. Always check with the council first and check you eligibility for any discount. You can’t just stop paying it or you could end up in prison.
You might get a reduction if you or someone in your household is disabled. In fact, your bill could be lowered by one valuation band, even if you’re in band A.
You might also get a reduction depending on the number of people who live in the property. If you’re the only adult living in your home, you’ll get 25 per cent off your bill and you can avoid paying at all if only students live in the home, or if all the inhabitants are under the age of 18.
If your home is empty because it needs major repairs or alterations to make it habitable, you’ll have up to a year free from council tax. However, once that year is up, you will have to start paying again even if the work isn’t finished. You also won’t have to pay council tax for up to six months if the property is empty and substantially unfurnished and you are allowed to live in the property for up to six weeks during this time.
If you have a second or holiday home, you will still need to pay council tax for it. But you will receive a 10 per cent – 50 per cent discount as no one is living there on a permanent basis.
Council tax benefit
If your income and capital (such as savings and property) is less than £16,000, you may be entitled to council tax benefit. This means your council tax bill will either be discounted or cut entirely. If you live with your partner, only one of you can claim and your income and capital will be assessed together.
However, if you live with someone who is not your partner, you may also be able to claim what’s known as Second Adult Rebate. To qualify, your housemate must be 18 or over, not paying rent or council tax, and on a low income. You may be able to get Second Adult Rebate even if you don’t receive council tax benefit. And this could reduce your bill by 25 per cent.
Posted under Personal Finance News
This post is a Blogger on November 12, 2009
