Council tax: households owe billions ahead of bill rise
Struggling households owe billions of pounds in unpaid council tax, but bills are expected to keep rising in the years ahead.Newly-published figures show £6.6bn is owed to local authorities in England, with an extra £642m having been added to those arrears in the year to April.Separate data from Scotland and Wales means the total cumulative amount owed in the three countries has hit more than £8bn.Campaigners have called for a more sympathetic approach to council tax debt collection, rather than the use of bailiffs.
While the government is proposing a change in the rules over the way unpaid bills are chased, the Treasury is also assuming council tax will rise by 5% a year in the future.Councils can raise council tax by up to this amount, although they can go above this cap if they hold a local referendum or get approval from central government.
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Powys County Times
28 minutes ago
- Powys County Times
Brecon Beacons holiday lets to become homes as rates soar
Holiday accommodation in a popular Powys visitor destination could be turned into affordable homes after Welsh Government policy saw its rates soar by £10,000 a year. An application by Mr and Mrs Hopkins would change the use of three holiday chalets and manager's accommodation off the A438 between Bronllys and Pont Ithel from short term holiday accommodation, into four permanent affordable dwellings. Of the four chalets three have two bedrooms and one has three bedrooms. Planning agent Samuel Organ of CO2 architects explained the proposal in a planning statement. Mr Organ said: 'The chalets at Beacons Edge have been let as short-term holiday accommodation for many years. 'However, recent changes to Welsh Government policy concerning the taxation of self-catering properties have significantly impacted the viability of such businesses. 'This application seeks a change of use from holiday accommodation to local needs housing." Mr Organ explains that an order came into force in 2023 stating that holiday properties must be available to be let for 252 days a year, and used for at least 182 days. Mr Organ said: 'To qualify for non-domestic rates, the chalets, despite active marketing, have only achieved a maximum of 156 letting days annually per unit, falling short of this threshold. 'As a result, the Valuation Office Agency removed the business from the non-domestic rating list on April 1, 2023, and the properties are now subject to domestic Council Tax. 'The annual Council Tax liability across the four units is now £10,433.88, a dramatic increase from the previous £372.99 a year in business rates, making the holiday letting model unviable.' Mr Organ continued: 'This application proposes to repurpose the chalets as permanent residential dwellings for local needs housing, thereby bringing them into productive and sustainable use.' While Beacons edge is outside a 'formally' defined settlement boundary Mr Organ stresses how close the site is to Bronllys and Pont Ithel. Mr Organ said: 'This makes the site an appropriate location for local needs housing, in line with both Powys LDP (Local Development Plan) policy and national guidance. 'The site's location near Talgarth, Bronllys, and Brecon all of which offer services, schools, and employment, this makes it ideally situated for households with a strong local connection. 'The applicant is willing to enter into a section 106 agreement to ensure these homes are retained for local needs.' This means that if the chalet become affordable homes they would be suited for 'young families, local workers and those wishing to downsize". Mr Organ said: 'The proposal represents a sustainable, low-impact solution that will deliver real community benefit and support rural vitality.' A decision on the application is expected by August 18.
BBC News
41 minutes ago
- BBC News
Bradford traders reflect as historic markets close for good
Times are changing in Bradford's markets, and this weekend marks the final day of trading for the stallholders in the Kirkgate and Oastler halls. Kirkgate Market opened in the 19th Century and Oastler Market in the 1930s, and both were important destinations in the years before online shopping saw footfall 28 June, they will shut and will eventually be demolished to make way for 1,000 new homes as part of a regeneration have instead been offered stands at the new Darley Street Market, and many told the BBC they were optimistic about moving to a more modern space. Kamran Ali, 35, has been repairing watches at Finesse Jewellers for the last 12 jewellers has been based at Kirkgate Market for more than 30 years, but will move to Darley Street after the weekend. "Bradford needs something to bring people back," Mr Ali said. "The new market is, hopefully, going to help."At the same time I'm sad, because some people here are not going to go to the new market." This sentiment was echoed by Lynn Hodgen, who was teasing her neighbour Mr Ali from her perfume stall while he was being interviewed. "They are your family, at the end of the day," Ms Hodgen, 59, said. "It's sad they're not coming with us, but it's still exciting to go and be in the new one." One of those not joining Mr Ali and Ms Hodgen is 67-year-old Altaf Hussain. He started selling children's clothes at Kirkgate Market in 1973, shortly after arriving in the UK from Pakistan. Mr Hussain was offered a spot in Darley Street, but said it was too small for his business. "It was so busy at one time," he told the BBC, reflecting on the market's glory days in the 1970s and 80s. "It was good before, but gradually after the 90s it started changing a lot, because everything was going online." Halimah Patel, 23, grew up playing around Kirkgate Market while her parents ran Essentials Hardware."It was always a nice place to come, a nice environment. It was really busy and it's really sad that it's quietened down in the last few years."Many of the stores that her family used to own have closed, but have not been said that the closure of a café across from the shop in December saw footfall drop dramatically. Their family has now taken over a launderette, which they said was a more reliable source of income. At Oastler Market, the views of the traders were similar. Vinesh Chauhan, 33, works at A&J Shoe Repairs, a family business based at the market since 1987. It was set up by his parents."I've got mixed emotions really," Mr Chauhan said. "I am looking forward to a new fresh start in the new market."Since I've been a little boy, I've known this place A-Z really."There's been a lot of shops here, but slowly they've all just gone."It's sad to be leaving because I've known this place all my life." Khalid Mahmood, 68, set up Solly's Fruit and Veg - named after his father - in 1994. "It's sad," he said. "I'm really going to miss it here."We've been here 31 years and since starting here we've had really good days."But now it's very quiet here and we have to go to the new site, where it will hopefully be more busy because it's near to the banks and the Broadway shopping centre."His son Imti, 42, who has been working at the market for more than 15 years, added: "It's quite odd really, because we've been here for so long and serviced the community for such a long time."But, as traders, I think we're all very excited to go to a brand new market, which is a little bit more central in location to the city. "Over the years, we've found the top end of the centre, where this market is, has been quite difficult for consumers to get to."All the consumer and retail interest has shifted towards Broadway and the bottom end of town, so I think it's quite an exciting prospect that we are going to be more central." The Darley Street Market scheme was approved by Bradford Council in July 2018, but has since been beset by delays. After seven years, the market is set to open for its first weekend on 12 has been designed with spaces for eating, drinking and live entertainment as well as traditional Alex Ross-Shaw, Bradford Council's executive member for regeneration, planning and transport, said: "Darley Street Market has always been significantly more than a simple like-for-like replacement of the markets it's replacing."It helps modernise our retail offer, but it also reshapes the city centre with a new market square." Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North.
The Sun
an hour ago
- The Sun
How to legally pay less tax on your income as millions hit with stealth taxes
MILLIONS of workers will be hit with higher tax bills in the coming years as frozen thresholds will force them to hand over more of their earnings to the taxman. Around 4.1million extra workers will be dragged into higher tax bands by 2027-28, according to the most recent figures from the Office for Budget Responsibility. 1 Income tax thresholds are frozen until April 2028, which means that more people could find themselves pushed into higher tax bands through a concept called fiscal drag. The higher rate tax band is frozen at £50,270, which means any earnings over this amount are taxed at 40%. Meanwhile, the additional tax band is currently fixed at £125,140, beyond which any earnings are taxed at 45%. But there are things you can do to prevent a surprise tax bill from landing on your doorstep. Here we explain how you can reduce your tax bill and avoid the tax trap. Apply for tax relief One way to reduce your tax bill is to claim tax relief. You can claim the relief on your job expenses, which means you will take home more of your income and pay less tax. To be eligible you must use your own money for things that you need to buy for your job and you only use for work. You can claim for items including working from home, uniforms, work clothes, tools, vehicles you use for work, travel and overnight costs. You cannot claim tax relief if your employer gives you all the money back or alternative equipment. You will get the relief based on what you have spent and the rate at which you pay tax. For example, if you claim £60 of tax relief and usually pay tax at 20% then you will get £12 back. The exact amount you could get depends on what you are claiming for. For more information and to make a claim visit How do I check my tax code? YOU can check your tax code on your personal tax account online, on any payslips or on the HMRC app. To log in, visit If you have one, you can also check it on a "Tax Code Notice" letter from HMRC. Bear in mind that you might need your Government Gateway ID and password to hand to log in. But if you don't have this you can use your National Insurance number or postcode and two of the following: A valid UK passport A UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland) A payslip from the last three months or a P60 from your employer for the last tax year Details of a tax credit claim if you have made one Details from a self assessment tax return (in the last two years) if you made one Information held on your credit record if you have one (such as loans, credit cards or mortgages) Claim marriage allowance If you are married or in a civil partnership then you may also be able to reduce your tax bill by claiming Marriage Allowance. Every worker has something called a Personal Allowance. This is the amount of money you can earn every financial year before you start to pay Income Tax. For the current tax year the Personal Allowance is £12,570. If you earn less than this then you usually do not have to pay Income Tax. Marriage Allowance is a special tax rule that lets you transfer £1,260 of your Personal Allowance to your husband, wife or civil partner. It is free to apply for and can reduce your tax bill by up to £252 every tax year. To be eligible you need to be married or in a civil partnership. Your income must be below £12,570 and your partner must pay Income Tax at the basic rate, which usually means their income must be between £12,571 and £50,270. Ian Futcher, financial planner at Quilter, said: 'Many eligible couples haven't claimed this, often because they simply don't realise it exists. 'It can be backdated for up to four years if you're eligible.' The fastest way to apply for the allowance is online and you should get an email confirming your application within 24 hours. You can also claim Marriage Allowance by post using the MATCF form. For more information visit Make use of salary sacrifice Salary sacrifice is a great way to top up your income without paying any tax. It lets you exchange some of your wages for a different benefit from your employer, such as a company car, childcare vouchers or pension contributions. Your salary is then reduced by the cost of any benefits you choose. As your salary is lower, you will pay less tax and National Insurance. For example, someone who earns the UK average salary of £37,430 could decide to sacrifice £200 a month into their pension. Over the course of a year they would pay £2,400 into their pension. By using salary sacrifice their wage would fall to £35,030 a year, which would save them around £480 a year in Income Tax. They would also save nearly £200 in National Insurance, which means their total saving would be £672. Salary sacrifice also saves your employer money on National Insurance. Many employers will pass this saving on to you by paying more money into your pension. As a result, your total pension contribution could be more than £2,700. Sarah Coles, head of personal finance at Hargreaves Lansdown, said it is worth checking if your employer offers salary sacrifice. She said: 'It will not boost your take-home pay, but it will cut your tax bill and make your money go further.' Pay into pension If you are lucky enough to earn more than £60,000 a year then you may be able to get more Child Benefit with an under-used trick. Child Benefit is paid by the government to parents or other people who are responsible for bringing up a child. It is currently worth £26.05 for the eldest or only child and £17.25 for every additional child you have. You get this full payment if you earn less than £60,000 a year. But beyond this point you need to start paying the benefit back at a rate of 1% for every extra £200 you earn. The payment disappears entirely once you earn more than £80,000 a year. But you may be able to hang on to more of your Child Benefit with a simple trick, Ian Futcher explains. He said: 'If your earnings are close to the threshold, using pension contributions or salary sacrifice to reduce your taxable income could allow you to keep more of your Child Benefit.' For example, if you earned £61,000 a year then paying £1,000 into your pension would allow you to keep all of your Child Benefit. .
