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Council tax ‘holiday’ means a cash windfall for millions

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20/02/2019
Millions of people will find an extra few hundred pounds in their account at the end of this month and next thanks to the annual council tax ‘holiday’.

If you pay your council tax across 10 months rather than 12, February and March are the two months you don’t have to pay anything.

The payment ‘holiday’ could leave you with an unexpected cash windfall of anywhere between £214 and £655.

The exact amount will depend on your council and the council tax band of your property.

The average UK savings made across February and March are as follows:

  • Band A – £214.82
  • Band B – £250.61
  • Band C – £286.42
  • Band D – £322.22
  • Band E – £396.13
  • Band F – £469.98
  • Band G – £544.40
  • Band H – £655.90
Source: Tonik Energy

Paying across 10 months was the only option until April 2013 and is still the most common way of paying so it’s worth checking your bill to see how you pay.

And with most councils planning to raise council tax this year, it could be worth setting this extra money aside to cover the added cost.

Or you could use it to pay off any lingering Christmas debts.

Alternatively, you could start an emergency savings account.

Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: “Ideally we should all have three to six months’ worth of expenses set aside for the unexpected, but a survey we did at the end of last year, found that a quarter of people don’t have any money put aside at all.”

 

 

 

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