Harringay, Haringey - So Good they Spelt it Twice!
Why is the Council Tax being collected over 10 months?
New bill arrived, 0% increase but the payments have increased - why? Payment period April - January -10 months, why? Earlier payment, more interest for the Council? Lower collection costs? Increase to 11 payments again to get a 10% increase without an increase in monthly amounts? I may have missed it but was anyone consulted? Was it mentioned at area assemblies?
Replies to This Discussion
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Permalink Reply by Adam on
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In the past i have requested that I make payments over 12 months, and they agreed
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Permalink Reply by Alan Stanton on
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I posted information on this topic back in 2007 after sending in a Member Enquiry (i.e. a formal councillor's request for information). I suggest reading through the thread as the first answer I got was incorrect and was later corrected. I don't think the position has changed but am happy to write again if people want.
In any case, I wrote in 2007 that this information ought to be on Haringey website. I couldn't find it in this otherwise helpful page about Council Tax. So I'll email and suggest it's added.
Currently (2009/2010) with a number of financial areas the Council is trying to be a bit more flexible to help residents hit by the recession. Although I don't know if this applies to Council Tax instalments. The best advice for people finding it a problem is always: "Ask". There's help - including online help - for people who may be eligible for benefits.
(Labour councillor and prospective candidate Tottenham Hale ward)
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Permalink Reply by majurey on
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And there I was thinking it was because the Council can't divide by 12, but do know how to move that decimal point one place to the left. (Only slightly tongue in cheek.)
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Permalink Reply by Alison P on
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I have just been on the phone to Haringey about our CT bill and I while I was checking our query asked whether we could pay over 12 months rather than 10. The woman I spoke to said this was no longer possible and that it was down to the government setting a target that everyone should be able to pay over a 10 month period. She said the only way I might be able to do this was to write in to the Council Tax office.
I didn't push it as this wasn't actually what I was calling about, but it sounds really bizarre - why not let people pay over a longer period if that is what they want? And why would the government set that vs Haringey?
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Permalink Reply by John McMullan on
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Because they expect us good Christian consumers to be spending up big on pressies over Christmas and to need a bit of a break afterward.
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Thanks for posting this, Alison. I've no idea if there's an actual Government target. But I'll raise what you were told by making a formal "Member Enquiry".
My feeling is that while it may be technically correct, it seems unhelpful given what we (i.e. Labour as the majority party on the Council) are saying about trying to help residents suffering in the recession.
Plainly, the Council does need prompt payment of the Council Tax - and other fees and charges - simply in order to pay its way and keep running. Though it seems that large organisations are occasionally treated far more favourably than individual residents, and allowed to owe the Council substantial sums of money.
(Labour councillor & prospective candidate Tottenham Hale)
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On Thu, Mar 25, 2010 at 12:34 PM, Alan Stanton wrote:
Member Inquiry
Please read this thread on Harringay Online Community website:
And a previous thread from 2007.
You will see that residents have raised the questions:
(1) Why do Council Tax payments have to be made in the first ten months of the year?
(2) Why can't they be spread over twelve months?
(3) Does the Council have discretion to allow payments over twelve months and in what circumstances will this be agreed?
(4) Is there an actual Government target to achieve in getting payments over ten months?
I would like to post a short accurate answer both for the residents who raised the points and anyone else who looks at this website. (I believe some 1500 Haringey residents are members.)
I'd also like to know:
(5) How does this policy/practice fit with the Council's stated aim of assisting residents who are suffering financial hardship because of the recession?
Lastly, can I make a helpful suggestion.
(6) Can we have an extra Frequently Asked Question on the Council's own website which explains: "Why are Council Tax payments over ten and not twelve months?
Thanks.
Alan Stanton
Tottenham Hale ward councillor
----- Original Message -----
From : Acting Head of Benefits and Local Taxation
Sent : Monday, March 29, 2010 11:25 AM
Cllr Stanton
Please find below my response to your recent enquiries concerning the payment of Council Tax. Firstly, I cannot open your email threads below as they require a password, However, I will answer the questions that you have raised.
1. The Council Tax statutory instalment scheme prescribes that instalments are payable over ten months at monthly intervals. The Council Tax is set in February and so the instalments are set as early as possible to maximise cash flow to the Authority. Haringey does have a policy in place which offers residents the chance to pay over 12 months - if the resident agrees to sign up for Direct Debit payments. This is the most cost effective value for money method to collect Council Tax.
2. Varying the monthly scheme from ten to twelve months for non-direct debit payers will increase the cost of administration to the Council and is likely to have a detrimental effect on cash flow for the authority which could ultimately push up the Council Tax in future years. Any change to this scheme will require a different reminder notice to be issued and will add to the cost of collection. Collecting Council Tax over ten months is a practice that is followed nationally and to deviate from the standard practice would incur cost, which Councils feel are best directed to other priorities.
3. Haringey offers twelve monthly instalment plans to council tax payers who agree to pay by Direct Debit. Direct Debit arrangements would need to be set prior to or during March so as to allow the twelve instalments to run over the full period of time.
4. There is no specific Government target to achieve payments over ten months, however there is a target set for the collection of Council Tax which is set locally by Councils. Collecting Council Tax over ten months gives the Council time in the last two months to take recovery action on payments that have been missed in the year, thus ensuring that the money is collected in that given year.
5. As above, residents do have the option to pay over 12 months by Direct Debit. Haringey continually promotes reductions from Council Tax bills in order ensure those suffering financial hardship are only liable for the correct amount of Council Tax, when taking into account their personal circumstances. We have promoted single person discounts, exemptions and the take up of council tax benefit. A recent Benefits and Local Taxation campaign ‘Get in touch – not in debt’ promoted such reductions. Lamp post banners were placed strategically across the borough and leaflets were given out in doctors surgeries, libraries and other public places in the borough. As well as promoting possible reductions of liability. the campaign also encouraged residents not to ignore their debt, and to contact us at the earliest opportunity, in order that we can give assistance and advice.
6. Yes, I will arrange for this to be added to the FAQ section on our website.
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I send them 12 equal payments by standing order. Any come backs I remind them we've had 12 months per year since 1752. Citizens account is slow to reflect correct status though, and I'm not popular. When the Iceland bank crashed Haringey had £millions stored there. I sometimes think They run the Borough on the hugh interest received from the bank account !!
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