MILLIONS of households will soon receive a £150 council tax rebate to ease the burden of rising bills.
And Britons can take action now to get paid directly into their bank accounts first.
Setting up direct debit to pay your council tax bill means your local government will have your details on hand when payments arrive in April.
You will still receive cash if you don’t, but it may take longer as the council will have to contact you and then you will have to file a claim.
In addition, you will have to wait for payment processing after the round trip too.
The government has announced help with municipal tax bills to help with a cost of living crisis that has pushed up bills and household spending.
Those in Council Tax Groups A to D will receive cash – about 80% of homes – but those in Groups E to H are among those missing out.
You can find out which group you belong to using government search tool – you just need to enter your zip code.
If you are not yet paying your council tax bill by direct debit and would like to set it up, you will need to contact your local council directly.
You can find your local council using gov.uk tool and searching for your zip code.
When you set up direct debit for municipal tax, you can choose to pay over 12 months or 10 months.
If you choose 10 months, then your monthly payments will be slightly higher as the bill is spread over less time, but you will get two months when you pay nothing at all.
Setting up direct debit means money will be debited from your bank account on the same day of every month, so you need to budget around that time.
You can usually choose which day of the month it is so you can time it to payout day when you have money in your account.
If you decide you don’t like direct debit payment, you can always cancel it, but do so through your advice.
Never cancel a payment through your bank, as this may be recorded as a missed payment, which can have serious consequences.
You will need to choose a new payment method, such as using a debit card to pay online, bank transfer, check, or payment processor.
Tax Aid Council
There is also a separate £144 million fund that the local authorities will distribute to vulnerable or low income people who are exempt from paying council tax or live in higher council tax brackets and will not receive the £150 payment.
You can challenge the city council’s tax band if you think it’s wrong so you don’t miss out on the money.
But be careful, re-evaluating your group can put you in a lower group where you pay MORE council tax, so be aware of the risks – you can read more in our guide.
Those who are exempt from council tax won’t get any money either, but if you get council tax support through your local council and it reduces your bill, you’ll get it.
Council tax is passed on to Scotland, Wales and Northern Ireland, so different schemes may be available there.
If you are not yet receiving an existing council tax rebate, it is worth checking to see if you are eligible.
Singles are eligible for a 25% discount on their bill, while an adult living with a student can receive a 50% discount.
If you have a low income or receive benefits, you may be eligible for a council tax reduction.
The requirements for getting help will vary depending on where you live, so it’s best to contact your local council first.
You can apply for a reduction through Government website.
Energy bill payers will also receive a £200 rebate in October to help with rising energy prices.
The energy price cap will rise by hundreds of pounds in April and could rise again in the fall.
However, cash to cover bills must be returned – as opposed to municipal tax payments – at a rate of £40 per annum added to accounts over the next five years.
In the meantime, council tax rates are set locally, and from April of this year, municipal councils can increase bills by as much as 5% despite the extra charge.
Here’s how to find out how much your account will grow.
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