Council Tax

Frequently Asked Questions

How much will the Council Tax go up by from April 2008?
On the 21st February 2008, Fareham Borough Council set its band D Council Tax for the coming year at £136.53. This is an increase of 2.98% compared to the previous year. The total Council Tax bill, taking into account the amount due in respect of Hampshire County Council, Hampshire Police Authority and Hampshire Fire and Rescue Authority, for a band D property is £1,329.30.



The table below shows how the Council Tax has increased over the last 5 years:



(All figs in the table refer to Band D properties) 2004/05 2005/06 2006/07 2007/08 2008/09
Fareham Borough Council 123.30 126.27 128.70 132.57 136.53
Other LA''s 999.81 1,035.27 1,083.69 1,137.06 1,192.77
Total Band D 1,123.11 1,161.54 1,212.39 1,269.63 1,329.30
% Increase on previous year +5.7% +3.4% +4.4% +4.7% +4.7%
FBC Increase +2.5% +2.4% +1.9% +3% +2.98%



Note 1: "Other LA''s" refers to the band D charges from Hampshire County Council, Hampshire Police Authority and the Hampshire Fire and Rescue Authority (from 2008/09)



What do I get for my Council Tax?
The extensive range of services that the Council provides is summarised in the leaflet that is delivered with your Council Tax bill. These include sport and recreation, planning refuse collection, housing, benefits, environmental health, street cleaning, community safety, etc. A more detailed performance plan is also published in the Spring edition of the Fareham Today magazine.



Why doesn''t the Council use its reserves to keep the tax down?
The Council''s reserves are a finite resource and are held in case of unforeseen events occurring that require immediate financial input; for example flood prevention, storm damage repairs, significant income losses, etc. The Council does not believe that it would be prudent to suppress tax rises by using these essential reserves. Instead, day to day spending is kept within the bounds of the regular resource inflows available to it.



What happens to the interest earned from the Council''s investments?
Interest earned (£1.5m planned in 2008/09) is offset against the net cost of services, which keeps the Council Tax at an affordable level.



What will happen if I refuse to pay the Council Tax?
You are legally obliged to pay the Council Tax. If payments are not made, the Council will issue a single reminder. If this does not prompt a payment, then the Council will issue a Court summons, which could lead to a fine or in extreme cases, imprisonment.



What can I do if I can''t afford to pay my Council Tax?
Discounts, exemptions and benefits are offered in certain circumstances. For example, students, single occupants, and owners of second homes are all entitled to a discount. For full details about discounts and benefits available, please contact the Council Tax office on Tel: 01329 236100, or e-mail counciltax@fareham.gov.uk, or see the Council Tax pages on our website if you wish to claim Council Tax Benefits, please complete and return this form. The benefits department will then contact you to let you know what information they need to process your claim.



Where can I find out more about Hampshire County Council''s budget increases?
For more information, contact the County Treasurers Department, The Castle, Winchester, SO23 8UB, or e-mail budget@hants.gov.uk, tel: 0800 028 0888



Where can I find out more about Hampshire Police Authority''s budget increases?
For more information, contact the Clerk to the Police Authority, Westgate Chambers, Staple Gardens, Winchester, SO23 8AW, or e-mail office@hantspa.org, tel: 01962 871595



Where can I find out more about Hampshire Fire and Rescue Authority''s budget increases?
For more information, contact the Hampshire Fire and Rescue Authority, Headquarters, Leigh Road, Eastleigh, SO50 9SJ, or e-mail reception@hantsfire.gov.uk, tel: 023 8064 4000



Why does Fareham Borough Council collect the Council Tax for HCC, HPA, HFA?
Government legislation sets out the framework for collecting Council Tax. The way it operates in the Fareham area is that the County Council and the Police and Fire Authorities advise Fareham BC what their proportion of the Council Tax bill needs to be. Fareham brings them all together and raises a single bill to the household. Then, Fareham pay over a fixed amount to the other Authorities on a regular basis. Any difference between the amount collected and the amount paid over to each Authority is held as a surplus or deficit in a separate account (called the Collection Fund). If the Collection Fund has a surplus, then this can be used to reduce the Council Tax in the following year. Similarly, any shortfall needs to be recovered through the coming years bills.



While paying all the Council Tax to Fareham Borough Council sometimes makes it difficult to see how much of the bill relates to the services provided by the 3 other Authorities, it is the most economical and trouble-free way method of collection, it reduces the number of bills that the public receive and also the number of organisations that need to be contacted if personal circumstances change, (for example only Fareham BC need to be contacted if circumstances have changed such that you are now entitled to a Council Tax discount).



I don''t use all of the services that the Council provides, so why do I have to pay for all of them?
Government legislation dictates the services that Council''s must deliver. These are known as statutory services and the law determines that the cost of these services be met primarily through local taxation. The Council also has the power to deliver certain non-mandatory services where the need exists within the Borough. The cost of these services is more likely to be met either through taxation, through fees and charges or a combination of the two. For example, The Council is obliged to provide an environmental health service, to protect the health and safety of the local community. Certain charges are made (e.g. restaurants pay a fee to be licensed) but a large proportion of the cost is met through taxation.



How much do local businesses pay towards the cost of running the Council?
Business rates are collected by Fareham Borough Council on behalf of the Government and all the money collected is paid over to them. The Government then determine how much of the rates collected nationally should be repaid to each Council directly. At the moment, there is no between the rates paid by local businesses, and rates received by Fareham BC.



Why doesn''t the Council charge more to people who actually use the services instead of taxing everyone for them?
Government legislation dictates the services that Council''s must deliver. These are known as statutory services and the law determines that the cost of these services be met primarily through local taxation. The Council also has the power to deliver certain non-mandatory services where the need exists within the Borough. The cost of these services is more likely to be met either through taxation, through fees and charges or a combination of the two. For example, The Council is obliged to provide an environmental health service, to protect the health and safety of the local community. Certain charges are made (e.g. restaurants pay a fee to be licensed) but a large proportion of the cost is met through taxation.



When will Council Tax bands be revalued?
The Government has extended Sir Michael Lyons'' inquiry into local government funding so that he can consider issues relating to the wider functions of local government and its future role.



For more information on the Lyons Inquiry visit the website. For further Council Tax information, please contact the Council Tax Section on Tel: 01329 236100 or e-mail counciltax@fareham.gov.uk.



What is Council Tax?
Council Tax is your contribution to the many services the Council provides such as collecting rubbish and providing housing, as well as providing funds for the police service, schools and social services.





How is Council Tax calculated?
How much Council Tax you pay depends on the Valuation Band your property falls into. The band for your property appears on your bill.

Every property in Fareham has been put into a band by the Listing Officer who works for the Valuation Agency, an office of the Inland Revenue.



Bands are allocated according to your property''s value on the open market on 1 April 1991, assuming that it was sold in vacant possession and also assuming that it was in a reasonable state of repair. Properties that did not exist or which have been altered since 1 April 1991 are also assessed as though they were in existence on that date.



Please note that the current selling price of your property is irrelevant, as 1991 prices are used, even for new and altered properties. The planned revaluation which was due to take effect from 1 April 2007 has been postponed by the Government.



The Council Tax charge for each property can be divided into two parts:

A personal element (50%); and
A property element (50%).
For all unoccupied and unfurnished properties, the full Council Tax is remains payable unless an exemption applies.



For unoccupied and furnished properties, a second homes discount of 10% will be awarded unless an exemption applies.



The personal element is payable when two or more people who are 18 or over live in the property as their main residence. Reductions on the personal element, such as discounts for single people, are available depending on circumstances. For more information see discounts.



A reduction is also available for properties which are eligible for Disablement Relief.



Bills are calculated on a daily basis, from the 1 April each year. This means that you will have to pay for every day that you are responsible for the property.



Example 1: if your normal bill is £1,000 for a year, and you move out on 30 April, you will be responsible for 29 days of this year''s Council Tax. The calculation would be:



£1,000 x 29/365 = £82.19



Example 2: if you move into a property on 3 May and move out again on 11 November, you will be responsible for 192 days Council Tax.



£1,000 x 192/365 = £526.03



The charge will vary slightly in a leap year, as there are 366 days, rather than 365.



For further information please contact the Council Tax office on Tel: 01329 236100, or e-mail counciltax@fareham.gov.uk.



Who has to pay Council Tax?
Normally the person who lives in a property will have to pay the Council Tax. Where more than one person lives in a shared property, the person who is highest in this list is responsible for paying Council Tax (if there are two or more people at the same level, they may be jointly liable):

A freehold owner who occupies the property as a main residence
A leasehold owner who occupies the property as a main residence
A tenant who occupies the property as a main residence
A licensee who occupies the property as a main residence
Anyone else who lives in the property as a main residence, with or without permission from the owner.
In some circumstances, the owner, and not necessarily the resident, is liable for payment of Council Tax:

Properties that are no-one''s main home
Homes where the tenants have separate tenancy agreements for part of the property or where it has been adapted for partial occupation (Houses in Multiple Occupation), for example, bedsits
Care homes, nursing homes and night shelters
Religious communities (monasteries or convents)
Properties which are not the owner''s main home but are occupied by domestic staff
Homes where a minister of religion lives and works
Properties occupied by asylum seekers who are receiving support directly from the home office.
For further information please contact the Council Tax office on Tel: 01329 236100, or e-mail counciltax@fareham.gov.uk.



What should I do with regards to Council Tax if I Move?
If you are moving out from a property in Fareham you should email counciltax@fareham.gov.uk so that we can make any adjustments to your bill.




What is E-Billing?
E-billing is a process of presenting your bill to you on the internet, instead of on paper. Not only does MyAccount make your bill more accessible, it is also interactive, allowing you to access more information, for example

How your Council Tax/NNDR is made up
What discount, exemption, benefits and relief''s you may have been granted
The payments you have made, and the instalments that remain for the year
And much more


How does e-billing work?
Once you have registered for MyAccount, you will be able to view details for all of your subscribed accounts on the internet at your convenience.



Will i still receive a paper bill as well as electronically?
At the moment, if you register for MyAccount, you will still be sent a paper bill. You will be able to opt out of receiving your bill in paper format in the future, making it fully electronic.



How secure are my account details?
MyAccount incorporates a number of measures to ensure that viewing your account details and your e-bill is secure and your personal data is protected. The measures include

Government standard authentication when you register for the service;
Password protected access to your account;
Encrypted data transmission via a secure internet connection when you log on to your Account, to ensure that your details are not accessible to any third party.



How does the registration for MyAccount process work?
Registration for MyAccount is very easy. All you need to do is complete the online registration form.



When you complete the registration form, please note the address and post code fields must be completed with the address details for the account you wish to register for. If you wish to register for more than one account we will require you to complete a registration form for each account.



Once you have completed and submitted the form, we will validate the details provided and register you for MyAccount. You with then receive a letter, which will be posted to your registered postal correspondence address. This letter will provide you with a password to access your MyAccount details.



When logging into MyAccount you will be prompted to enter your registered e-mail address and the password sent to you.