You may get a Council tax reduction if you receive government benefits and have a low income. You can cut the tax liabilities by 100%, depending on your financial situation! Yes, you have read that right. You must pay Council tax if you live in an area in the country on rent or as a permanent housing setup. You must be at least 18 years of age to qualify and pay for the bill.
However, if living as a couple, you can split the amount equally to pay the dues. The tax you pay varies according to the location and the property value. However, countering such payments is difficult under unemployment. For example, you pay £231 every month for 12 months. It translates into £2772 per year.
Paying such payments gets tricky with low finance, and hence, individuals seek council tax reductions. The blog details all about the aspect and may help you if you are seeking such relief.
What does a Council Tax Reduction mean?
Council Tax Reduction are a facility for individuals struggling to pay the tax partly or fully. It could be due to permanent disability, unemployment, or business loss. The amount deduction depends on the status and the council tax you used to pay earlier. Options like the Council Tax Support Calculator may help. You can know the estimate by checking it and filing some details on the Calculator.
What should you check before getting a Council tax reduction?
Yes, there are a few things to check before claiming Council tax reduction. Knowing the below aspects by citizenadvice.org.uk will help you decide right:
1) Can you get help with other expenses?
Yes, the government provides relief for individuals on low income. You may get assistance with shelter, energy bills, rent and even groceries. You can save money on such things if you qualify. It will help you save money for Council tax payments.
- Are there any possibilities to reduce the bill?
Under certain circumstances, the authorities may help you. You may pay less than what you owe. Getting a reduction on the bill is tricky. You may get one if you have been unemployed for a long time now. However, you have been trying continuously to get the work done. Under these circumstances, you may pay a reduced amount.
However, you may not have the money to clear the past month’s dues. Moreover, unemployment prevents you from qualifying for extra cash. Relax if you know someone in the family who may help you are eligible. Check direct guarantor lenders for help. You may get an instant loan if the guarantor or the second person holds good income and finances. You can use the loan to clear the backlog of Council Tax. It prevents you from eviction.
- Who must pay the bill?
Sometimes, one continues to pay the dues without realising the actual name. It is important to understand and make sure that you pay your bill only. Check the details and confirm you must pay the Council tax. It prevents any confusion and helps you carry payments.
Do you qualify for Council Tax Reduction immediately? Let’s check.
Generally, you must have a low income to qualify for a Council Tax Reduction. Another requirement is you must be liable for council tax on your residential address. Anyone can claim the reduction as a student, self-employed, unemployed, single woman, disabled, single or married. Let’s check what else you need to qualify:
1. You are responsible for Council Tax
As mentioned above, you may not qualify if you are not liable to pay the Council tax. Check your documents carefully before filing for the reduction. You should be legally responsible for the bill on paper.
2. You live on rent as a student
Students below the age of 18 may qualify for Council Tax Reduction. It is because they lack enough income to finance payments monthly. Moreover, you don’t have any guardian to look after you and are solely responsible.
3. Your total savings does not exceed £16000
It is the most important criterion to qualify for the reduction. The authority analyses your monthly income and liabilities with proof of earnings to decide this. You may qualify for the deduction if your savings and capital are less than £16000. However, you may still qualify if you are on Pension Credit.
4. Have a combined income of less than £344
You may claim a reduction if you and your partner have less than £344 as monthly income. It is for married couples where both individuals earn a living. However, they still struggle to meet basic living on two incomes. It is because one of them has a low income. Don’t worry if you falter on critical payments. If you are the one with low income and unemployment, you may get instant cash.
Check verified loans for people on benefits income. It will help you finance the critical needs instantly. For example, you can meet your personal needs like paying the credit card bills using the loan. You just need to reveal the income from government benefits for the unemployed to qualify.
- Receive certain government benefits
Individuals receiving certain government benefits don’t need to pay Council Tax. Here are certain benefits that exempt you from paying the Council tax:
- Income-Based Job Seeker’s Allowance
- Income-Related Employment and Support Allowance
- Guarantee Pension Credit
- Income Support
You can claim Council Tax reduction if you qualify for these conditions.
Who may not qualify for the Council Tax reduction?
Now, you know the individuals who may qualify for the reduction. However, you may not get one under the below conditions:
- You have landed in the UK from abroad and share restrictions on your stay
- You are a full-time student
- You live in a nursing home and residential care
- You are of working age, and savings exceed £6000
- You are working age with no income and have savings of over £16000
- You are a pensioner and have savings of over £16000
- You are working age, and your income is above the earning income caps.
What do you must provide to claim reduction?
Preparing the documents to provide helps you ease the process of getting a claim. Generally, you need the below documents to qualify:
- You must have a fully completed claim form without any mistakes
- Proof of Identity for you and the partner if married.
- Proof of National Insurance Number for you and your partner
- Income proof of you and your partner
- Income proof of anyone living with you
- Savings proof
- Rent payment proof
Bottom line
Yes, you may qualify for Council tax reduction as an unemployed or low income. However, you must meet other eligibility criteria before seeking one. If you qualify, you can cut a 100% council tax bill. What could be better than that? It means you don’t need to pay around £2772/year. This may mean savings and help you counter other critical financial needs.
