Households in the UK, which are feeling the pressure of the cost of living crisis, will receive a municipal tax rebate this spring to mitigate rising prices.
The one-off payment of £ 150 is part of a £ 9.1 billion support package presented by Rishi Sunak in February.
Unlike a separate discount on energy bills of £ 200, which is made later in the year, the discount will not have to be paid.
Here’s when you can expect to receive it, who qualifies for payment, and whether you need to do anything.
When will you receive the municipal tax rebate?
If you qualify, you must receive the municipal tax rebate of £ 150 very soon, and payments will be introduced from April onwards.
The government states in its official guide: “All subsidies for tax rebates to the Council must be paid as soon as possible from April.”
Eligible groups do not have to apply for a municipal tax rebate as long as you pay your bill by direct debit. If you do, the one-time payment will be automatically credited to your account.
Chancellor unveils energy support measures in February (Photo: Getty Images)
However, the government council states that the councils have until September 30, 2022, to process the discount.
In the weeks before April, people were urged to ensure that they switched to direct debit so that they could be paid as quickly as possible.
Receiving money from taxpayers on the board without direct debit agreements takes more time, according to the Local Government Association (LGA), as councils will have to try to contact them about the rebate scheme and undertake prepayment checks.
The Independent Budget Accountability Office (OBR) has warned that there could be only 80 percent absorption among those who do not pay for their energy through direct debut.
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Who can ask for a discount from the municipal tax?
The municipal tax rebate is paid to households whose homes were in municipal tax groups A to D in England on April 1, affecting about 20 million homes, including 95 percent of rented property.
This criterion is reflected in Scotland with its scheme and the Welsh government has said it will also offer similar terms.
If you live in England or Wales, you can find out your tax group by entering your zip code on the government website here.
You can also use this service to challenge your tax coverage if you think it is wrong.
Those living in Scotland will need to use the Scottish Assessors website.
Your municipal tax is based on the price at which the property would be sold on the open market on 1 April 1991 in England and Scotland and on 1 April 2003 in Wales.
In England, groups A to D cover properties worth up to £ 88,000, in Scotland the ceiling is £ 58,000 and the threshold for Wales is £ 123,000.
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