The short version: Council Tax is what you pay to your local council to fund local services. Rubbish collection, street cleaning, libraries, social services. The amount depends on where you live and which valuation band your property falls into.
How is it calculated?
Every property in England is assigned a band from A to H based on its value in 1991. Each band has a set amount attached to it. Higher value properties pay more.
The actual amount you pay also depends on your circumstances. Single occupants get a discount. Students can be exempt. Some people on low incomes qualify for council tax support.
Can I claim it as a business expense?
If you’re self employed and work from home, you can claim a proportion of your council tax as a business expense. The proportion should reflect how much of your home you use for work and how much time you spend working there.
Not sure how to calculate your home office deduction? Drop us a message and we’ll help you figure it out.
