Council Tax Benefit & Housing Benefit Form - Wrexham County: Fill & Download for Free

How long is a piece of string? There is literally no “right” answer to this question.A person on £40,000 gets a £12,500 tax-free allowance, and pays 20% income tax on the remaining 27,500, i.e. £5,500. They also pay National Insurance of 12% of earnings above £7,956 so that’s another £3,845. However, in practice these calculations are based on earnings after the deduction of any workplace pension contributions. For example, if the employee on £40,000 is paying £1,800 in pension contributions, they pay 20% income tax on £25,700.How much VAT a person ends up paying is entirely dependent on what they spend their money on. Certain goods and services are taxed at the full 20%, but a lot of others are either zero rated, or attract a reduced rate. Domestic fuel, for example, is only 5%, but rent is free of VAT. For many people, VAT will only be in hundreds of pounds per year, not thousands. Ditto vehicle-related taxes.Similarly, how much Council Tax they pay will depend entirely on, a) where they live, and b) the value of the property they live in. The person actually living in a property is liable for Council Tax, so usually tenants also have to pay, although some landlords might include it in the rent for certain types of property. We rent a house worth around £650,000 in London, and the Council Tax is around £1,460 per year.Conversely, things that are counted as reliefs in other tax regimes are essentially dealt with outside the UK system, so that the vast majority of people don’t need to fill in a tax return. For example, if you have children, you can apply for Child Benefit, while the government will also top-up any payments on childcare to make up for the tax previously paid on it at the base rate of 20%. How that works in practice is that for every £1 you pay into a government account, it gets topped up by another £0.25, and you then pay the childcare provider directly from that account.

I live in Portsmouth, on the South Coast I imagine up the North of England it's drastically cheaper but here is what we pay.A four bedroom home, cable, WiFi, landline, all utilities, car, car insurance, council tax, groceries, four mobile phones, my family of 6 costs about £1500 per month tops due to fluctuations, I could cut my budget to about £1,300 if necessary.This is for an immigrant family with no recourse to public funds, so I find it quite reasonable. For a British citizen receiving child benefit it's probably much better.You would want to earn at least £1,000 more a month to have disposable income, and enjoy life a bit, especially with lots of kids. I don't have much expectations to live a lavish lifestyle, I just want to pay my bills and enjoy a drive, a nice meal or a holiday.My work is just above minimum wage and it can cover almost all my monthly bills alone. So I think if you are a healthy person and able to get a basic job you can live. Don't be fooled by answers of people who are used to being rich they make it sound like living as a single person on £1,000 a month means begging for change and starving.My city has studios for £350 per month, if you earn minimum wage and get a £60 monthly bus pass you are pretty much almost £800 to spend on yourself for the rest of the month….thats pretty good.However if in outer london, a two bed flat could cost you £1400 per month, plus £800 for food, electricity, internet, gas, water, council tax, mobile line for a couple only. excluding transport which could vary between £60 per month to £300 per month per person that depends where you want to commute and what transportation to use. So if to budget your net and not gross income should be £2600 per month minimum if both working and no cash to spend on entertainment or clothing or holidays or leisure.

The reason the renter pays the council tax is that it is the occupier who is liable, who may or may not be the owner of the property. Some landlords include council tax in the rent, some do not - but there are issues with including the tax in the rent because students etc are exempt from council tax and there are rebates for single occupiers, and those on housing benefit also get council tax benefit i.e. the council pays the rent and then pays itself the council tax. Only if there is a change of circumstances which results in the tenant owing the council money will the council chase the landlord (and the landlord pays the tax if the property is empty).