When reading the word ‘tax’ in relation to moving house, it might inspire a feeling of dread. But worry not – Metro Removals is here to dispel any inhibitions you may have in relation to understanding and paying your council tax.
Moving house can be a lengthy task, often with unexpected costs cropping up. However, with a methodical approach and some simple preparation, your council tax bill does not need to be one of these. Below we answer some of the most important questions in order to simplify the council tax process.
What is council tax?
The council uses this money to pay for services such as schools, roads, rubbish collection, policing, fire services, street lighting and the maintenance of parks and other green space.
It’s based on the market value of your home and is organised into different ‘bands’, named by letters of the alphabet. A is the lowest band, through to H which is the highest. Your council tax is paid to your local authority annually, or in 10 or 12 monthly instalments.
How much will I need to pay?
The average amounts you’ll pay for your council tax annually are as follows:
- England: £1,484
- Wales: £1,374
- Scotland: £1,592
However, the amount you pay is based on where you live and in what band your home falls into, so it could vary greatly from the above figures. You can check your council tax band by inputting your postcode on the government’s website. It’ll then redirect you to your local authority’s website, which should enable you to organise payments.
Some people are exempt from council tax – such as full-time students, children under 18 and live-in carers. You also qualify for a 25% single occupancy discount if you live on your own, or if the others in the property are exempt. Check your individual circumstances here.
How does moving housework in relation to my council tax?
When you leave your current home, you simply need to inform your local authority of the new address you’re moving to, ensuring you won’t be paying any tax on a home you’re not living in.
If you’re moving to a new borough, just let your old local authority know that you’re leaving, and they’ll send you a final bill. Then, just register with your new local authority and they’ll set you up as a new account.
You are responsible for the council tax on your new home from the date you move in, so there’s no point delaying registering for 6 months – as you’ll simply receive a council tax bill that has been backlogged for 6 months, and also risk being fined.
If you own the home you’re moving out of, you’ll still be responsible for paying council tax – albeit at a reduced rate if it’ll be empty for a while. Visit the citizens advice website for more information.
Will non-domestic council tax (business rates) affect me in my new property?
The government generally doesn’t expect you to pay council tax if you use your home for minor business use, such as using a bedroom as a home office or selling to clients via post.
Business rates are charged on shops, offices, restaurants, factories and holiday rental homes. Some types of property pay both types of tax – such as a shop or restaurant with a flat above. Check out this factsheet for more information.
As a family run business with over 30 years experience in the removals industry, you can rest assured your belongings are in the best possible hands. Moving house needn’t be such a stressful process, and we can aid you from start to finish; from taking care of packing your home safely to transporting and delivering the contents of your home to your new address. For more information, get in touch with our friendly team today.