The Basic 25% Discount Explained
Bills are charged as if there were two or more people living as adults in a home. If only one adult is counted as living in a home then that person can claim a 25% discount on their council tax bill. This is the most common council tax discount in England, Wales and Scotland claimed by citizens. Full information on this discount can be found on the Citizens Advice website here.
Who Counts As "Disregarded"
Not everyone living in a home with an adult will be counted as an adult for council tax purposes. There are many circumstances where a person living in a home with an adult will be ‘disregarded’ ie treated as if they were not living there. These are: full time students; 18 and 19 year olds still at school or college and on a full time course; 18 and 19 year old apprentices in approved apprenticeships; live-in carers; and certain people with severe mental impairment. GOV.UK outlines who is a student for council tax purposes including what kind of proof a council tax payer may need to produce to the council in order to show that a student is living with them. The majority of people mistakenly believe that if they have another adult living in their home with them then they must automatically be paying full council tax.
Four Households Compared
We have dealt with several different scenarios to give an example of how the above rules will apply.
Parent and child (student) home from University: Parent is only non-disregarded adult. Single person discount still applies providing the council have a copy of the student’s certificate.
Parent plus an 18-year-old still at sixth form or college: He is disregarded as he is in full-time education. Therefore the discount still applies to the parent as he is the only person to be counted as an adult.
Parent and apprentice: an apprentice who is on an approved training scheme can be disregarded if he or she is on low wages and working long hours as part of his or her training. If the apprentice’s scheme is approved, his or her presence would also mean that the parent could claim a 25% single person discount.
All the adults in a house share can be students: The discount does not apply in such circumstances as there is no single adult that can qualify for the reduction. In such circumstances the whole property would be Class N and therefore Exempt from Council Tax as a student property.
25% vs 50% vs Full Exemption
There are three ways in which your single person discount could be affected and it is very important to understand each of them to ensure you are claiming the correct amount of discount. A 25% discount is for a property where only one qualifying adult resides in the property. A 50% discount is for a property where there are 2 or more adults but all of them are disregarded i.e. they are not students, are not on an apprentice scheme etc. A full exemption is awarded to Class N Exempt dwellings – i.e. those that are occupied solely by students.
Applying For The Discount
Applications for a single person discount are made by way of a short on-line form that is available on the Council’s web-site and can be completed and on-line application submitted on-line or by telephone. As the single person discount claim relies upon another person in the household being disregarded (e.g. a student) then a student’s certificate of status will be required. In some cases the Council may check the basis upon which a single person discount has been awarded and if it is found that the claim was incorrect then this can be withdrawn with the amount of tax that has been charged subject to a late payment penalty.
When Your Household Changes
Claiming the single person discount is not a one off claim and if your circumstances change you must inform the council as soon as possible. This includes a child coming home from university on a full time basis, a partner moving in, or a lodger taking on full time employment. Failure to inform the council of a change in your circumstances and continued claiming of the single person discount after the change could result in the council correcting your account and adding a penalty to the amount due.
single person discount council tax is covered in more detail at https://budgetingtips.co.uk/house-home/when-your-emergency-fund-was-called-wednesday/.
Decision Framework
Do you have no other adults who are not disregarded? Then you can claim a 25% discount.
Is everyone in the home disregarded? 50% off.
Are you a full-time student? Then your home is exempt from Council Tax and you should apply to your local council for an exemption using a student’s certificate from your university or college confirming that you are on a full-time course lasting the greater part of 3 years and are a student.
Am I claiming on behalf of someone who has recently moved back home after being away for full time education (e.g. a child at University)? Am I claiming after a change in my household circumstances (e.g. a partner moving in)?
