This is when you don't have to pay council tax in 2021 - and why there's a payment break

Regardless of whether you buy, rent from your local council or privately rent your home, we are all expected to pay council tax.

But as the financial year draws to a close, you could enjoy a welcome break from payments.. 

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 Whether you’re entitled to a break depends on which payment method you have agreed to. So who qualifies and which months do you not have to pay?

When is the break from paying council tax? 

The break will be in the months of February and March 2021. 

Who will not need to pay? 

Anyone who pays council tax in monthly instalments across 10 months should not need to pay. 

This is due to your annual amount being spread across 10 monthly payments, as opposed to 12. 

Paying by this method does not mean that you pay  less annually than someone who chooses to pay one lump sum per year, or anyone who has a different payment plan with their local authority. 

Do I need to apply for the two-month break? 

No, you will have signed a contract with your local council when you first took up residence at your current address. 

Therefore, you do not need to contact the council or cancel any direct debits for these months.  

The payment break will automatically happen as you have now completed your council tax payments for the financial year 2020-2021. 

What is council tax? 

Council tax is a mandatory payment taken by each council across the UK, from residents who own or rent a domestic property. 

Council tax goes towards paying for council run services such as roadworks, bin emptying and recycling, street lighting, adult social care and in Scotland, water and sewage. 

While some people may be exempt from paying, the majority of people who are over the age of 18 and responsible for a property are expected to pay council tax. 

Which council tax band am I in?

The amount you pay is determined by the council tax band your address falls under and the payment is usually based on at least two adults residing at the property. 

Council tax bands are based on the relative property valuation, as follows: 

England 

Band A. Up to £40,000

Band B. More than £40,000 and up to £52,000

Band C. More than £52,000 and up to £68,000

Band D. More than £68,000 and up to £88,000

Band E. More than £88,000 and up to £120,000

Band F. More than £120,000 and up to £160,000

Band G. More than £160,000 and up to £320,000

Band H. More than £320,000

Scotland 

Band A. Up to £27,000

Band B. Over £27,000 and up to £35,000

Band C. Over £35,000 and up to £45,000

Band D. Over £45,000 and up to £58,000

Band E. Over £58,000 and up to £80,000

Band F. Over £80,000 and up to £106,000

Band G. Over £106,000 and up to £212,000

Band H. Over £212,000

If you are eligible for state benefits or you are a single person, you should contact your local authority to make them aware as you could be due a reduction or exemption from paying.