UK |

Final-Year Students Facing Unexpected Council Tax Bills

June 29, 2024
Pic: DD
  • Student status ends the day after the close of a university’s summer term, usually at the start of June. Student accommodation leases from private landlords typically run until late June, July, or even August. This discrepancy means the risk of a surprise bil

It is recommended that final-year university students make sure they have paid all of their rent for the last few weeks.

Although they are not required to pay taxes while enrolled in the course, students must do so after their last year.

The UK government says student status ends the day after the close of a university’s summer term, usually at the beginning of June.

Student accommodation leases from private landlords typically run until late June, July or even August, and this discrepancy means the risk of a surprise bill.

Megan Lloyd, a debt expert at Citizens Advice, says: “Students become liable for council tax from the day after they formally stop being a student. This could be when their course officially ends, or the day after they abandon it or get dismissed from their studies.

“For example, if a student’s final term ends on 10 June, they will become liable for council tax from 11 June,” she says.

She adds: “This only applies to final-year students; students don’t have to pay council tax during the summer holidays between years of study.”

Manchester city council has already sent out letters billing graduating students for days since term ended. Other councils are less proactive.

A spokesperson for Council Tax Advisors said: “It’s advisable for students to check with their local council for precise details, as there can be variations in how councils handle the end of term exemptions and the start of council tax liability.”

Council tax bills are based on a property’s value so how much students could become liable for depends on the property they are renting.

According to Gov.uk, from 2024 to 2025, the average bill for a band D property (priced between £68,001 and £88,000 in value on 1 April 1991) will be £2,171 a year. This is about £181 a month – a lot when a third of students live off less than £50.

Students who receive a letter or due payment notice should take action so it does not result in a debt.

There can be serious consequences for council tax arrears, including legal action or a visit from a bailiff.

Students who can prove they are no longer living in the property may be able to get an exemption at their council’s discretion.

However, for the most part, those in this position will need to pay.

It is important for students to continue checking post, especially as their housemates begin to move out of their rented accommodation.