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Tax

Tax credits

Tax credits are payments from the government to help with everyday costs. If you're responsible for at least one child or young person who normally lives with you, you may be eligible for Child Tax Credit. If you work, but earn low wages, you may be eligible for Working Tax Credit.

Child Tax Credit

To receive this you do not have to be working, but you must be responsible for a child (under 16) or qualifying young person (under 20 and in full time education). Again this is means tested and will depend on income.

You must also satisfy the presence and residence conditions. (This means that international students do not qualify. Students from the EEA must seek further advice).

Working Tax Credit

Students can claim Working Tax Credit as long as they meet one of the eligibility requirements. You must also meet residence criteria, which means international students will not qualify (EEA students should seek further advice). The eligibility criteria are as follows:

You must be 16 or over, have children and be working at least 16 hours a week or
You must be 16 or over, have a disability and be working at least 16 hours a week or
You must be 25 or over and working at least 30 hours a week or
You must be 50 or over, be working more than 16 hours a week and have been claiming income support, jobseekers allowance or incapacity benefit for at least six months

You may also be able to claim for childcare costs, if any of the following apply:

You are a single parent, working at least 16 hours a week and incurring relevant childcare costs
You are a couple, both working at least 16 hours a week and incurring childcare costs
You are a couple, one working and the other incapacitated, incurring childcare costs

Your income must be under the threshold. If you receive the higher education childcare grant you cannot claim the WTC childcare element as well.

For information about tax credits, and how to apply visit www.direct.gov.uk.

Summer work

If you are over 25, and working over 30 hours a week during the summer break, you can claim tax credits. If you do so, it is important that you notify the Inland Revenue of change of circumstances when you re-start University at the end of the summer. This is to avoid overpayment.

Council Tax FAQ

What is Council Tax?

Charge on your dwelling paid to the local council for the services they provide.
Level of tax is determined by the value of the property.
Certain people are exempt from paying. If only one person is liable they receive a single person discount of 25%

As a full time student, am I exempt from the Council Tax?

Usually, though this depends on where you live and who you live with.

I live in a University hall of residence, do I have to pay?

If you live in a University owned hall of residence or flat you will not have to pay, as these properties are exempt. The University contacts the Council so there is no action for you to take.

I live in a shared house in the private rented sector, do I have to pay?

If you are all full-time students there is no charge as you are all disregarded when setting the bill. If you share a property that you own you may be liable, even though you are disregarded when calculating the amount.

Do I need to fill in any special forms to ensure that I am exempt?

In October and February each year, a file is sent to Leeds and Wakefield City Council with details of all full time, registered students whose address is in Leeds or Wakefield. This mean that normally you should not get a bill. For more details see: http://www.leeds.ac.uk/studentservicescentre/counterservices/counciltax.htm

Students who have to pay council tax.

If you share your house with non-students or part-time students you may be liable to pay the council tax so please read on.

One of my Housemates is part time/not a student.

Unless you are in a tenancy beginning prior to 2004 only the non-students will be liable for the council tax. If the housemate is on benefits/a low income they will recieve council tax benefit. If they are the only liable member they will also receive a 25% single person reduction.

Owner Occupiers

If you own your own home and live in it with non-students you will have to pay the council tax. If you live with only one non-student you will recieve a 25% discount.

What happens when I finish my full-time course?

At the end of your course it is your responsibility to tell the council that you are no longer a full-time student. Officially your course ends on the last day of the published term dates for your course.

Part-time Students

You will be liable to pay the council tax but may be able to get council tax benefits or a reduction. See 'How can I reduce my bill?' below.

International Students and Council Tax

Full time International Students do not have to pay Council Tax if they are living with other full time students. If you live with your partner who is not a student they will be disregarded for Council Tax purposes if they:

are not a European Economic Area National
have Limited Leave to Remain in the UK (i.e. are not permanently settled here)
are restricted or prohibited from working by their immigration conditions OR are not allowed to claim Public Funds (Income Support, Jobseekers Allowance, Housing Benefit, Council Tax Benefit, Family Credit, Child Benefit or housing as a Homeless Person). This regulation does not apply to spouses permanently settled in the UK.
In order to claim this disregard you will need to complete an exemption form available from the Student Advice Centre or Leeds Revenues Service, PO Box 60, 2 Great George Street, Leeds, LS2 8JR.

'Writing Up' Students

Students in their overtime (writing up) year are no longer eligible for council tax reduction or exemption.

What happens if I need to take time out of my course?

As long as you are currently full-time and are only suspending your course and therefore intend to resume the full-time course at a later date, you should not have to pay council tax. If you receive a bill contact the Student Advice Centre immediately. If you are an external student for a year the situation may differ - contact the Student Advice Centre for more information.

How much is the council tax?

Council Tax is based on the value of your property as at 1st April 1991. There are 8 valuation bands. Bills cover the period from April to the following March but you are only liable for the period you are in the property. The council operates a system to pay by instalments to help with budgeting.
View current council tax amounts at the Leeds City Council webiste.

How can I reduce my council tax bill?

There are several ways that you can reduce your Council Tax bill.

Discounts

The council assumes that there are two or more adults in the property. If there is only one liable person in the house you will be awarded a 25% reduction on the bill.

Council Tax Benefit

As a student you can apply for this benefit only if you are liable to pay the Council Tax bill and the only other occupants are your partner and/or children. Only the following full time students may apply:

Those claiming Jobseekers Allowance/Income Support
Lone parents with dependent children
Disabled students
Those aged 60 or over
One member of a couple where the other partner is not a student (they apply)

If you are a full-time student (not in one of the above categories) and live with non-students on a low income or unemployed then they may be able to claim Council Tax Benefit on the whole bill. New claimants in properties in bands F,G and H will only be able to receive Council Tax Benefit at the level it is payable on a Band E property.

To apply - Go to http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018923 or visit your local Jobcentre plus. Alternatively Call 0800 055 6688 (8.00am to 6.00pm, Monday to Friday) for further information. A textphone service is available if you have a speech or hearing impairment - 0800 023 4888.

Second Adult Rebate

Paid instead of main council tax Benefit.
Paid if there is another adult in the house who does not pay rent and does not share liability (eg adult offspring).
Claim based on other adults rent - maximum deduction 25%. Can be given on top of Single Occupiers discount to give 50% reduction.

You can apply for Second Adult Rebate if:

you are the only person in the property liable for Council Tax
you are living with a second adult but not as a couple
the second adult who lives with you does not have a status discount and is not under 18
that person should also not be earning more than £219 per week and
no one in that home pays you commercial rent

Reduction in banding

You can only appeal against the banding that the council think your house should be in if you are new occupiers of that property. You have to appeal within six months of the date that you moved in.

People with Disabilities

If your property is in a band higher than Band A and has been specifically adapted because either you or your child are disabled you may be entitled to a reduction in your banding. You will need to apply to the Council for this and supporting medical evidence may be required.