Students in the UK are liable to pay income tax and National Insurance contributions on their earnings, just like everyone else. The Student Tax Advice website and a tax refund calculator have been created to help answer some of your most frequently asked questions about tax, and to help you find out if you might be eligible for a tax refund. In developing these, HM Revenue & Customs (HMRC) has worked alongside the National Union of Students (NUS).
If you live in university halls, or in a house where everyone is classed as a full-time student for Council Tax purposes, you’ll be exempt from paying Council Tax. The rules are different if you live with someone who’s not a full-time student – but your household could still get a discount.
If you live only with other full-time students: exemption from Council Tax
A place occupied only by full-time students is exempt from Council Tax. So if you live in university halls - or a house where everyone is a full-time student - you shouldn’t get a bill.
If you think you should be exempt but are still getting a bill, follow the link below to find out how to apply to your local council for an exemption.
Working out if you’re a full-time student for Council Tax purposes
You’ll usually be considered a full-time student for Council Tax purposes if:
* you attend a university or college course lasting for at least one academic year - as long as you attend for at least 24 weeks out of the year and study for at least 21 hours per week during term time, or
* you’re under 20 and your course leads to a qualification up to (but not above) A level standard or equivalent - as long as it lasts for more than three months and involves more than 12 hours of study per week
But not all courses count towards ‘full-time student’ status. For example, it doesn’t usually apply to distance learning or evening classes. Also, you won’t be considered a full-time student if you’re doing a course related to your job - such as day release.
You must also be studying at a ‘prescribed place of education’. This will include established universities and most colleges. Ultimately, though, it’s up to your local council to decide - if there’s any doubt, check with them.
If you live in with someone who’s not a full-time student
Council Tax is charged per ‘dwelling’ or household, and each household gets a single Council Tax bill.
If there’s someone in the household who’s not a full-time student the household will get a bill, but may qualify for a discount on the full amount.
Working out who is ‘counted’ for Council Tax purposes
A full Council Tax bill is based on two adults living in a household - if there’s fewer than two, the household can get a discount.
For Council Tax purposes, certain types of people aren’t ‘counted’ towards the number of adults in a household - the bill is worked out as if they weren’t living there. This includes individuals who are:
* considered a full-time student for Council Tax purposes (see the section above on ‘Working out if you’re a full-time student for Council Tax purposes’)
* doing a course which leads to a first registration as a nurse or midwife
* doing an Apprenticeship which leads to a qualification recognised by the Qualifications and Curriculum Development Agency - provided they don’t earn over a certain amount (currently £195 per week)
* under 25 and in a recognised form of full-time training funded by either the Skills Funding Agency or the Young People’s Learning Agency
Council Tax discounts
A household where everyone is a full-time student is exempt from Council Tax and won’t get a bill. See the section above - ‘If you live only with other full-time students: exemption from Council Tax’ - for more about exemption.
If your household has fewer than two adults who are counted for Council Tax purposes, it will qualify for a discount on the full amount. If there’s only one, you’ll get 25 per cent off . If the household doesn’t have any adults who are counted - but is not exempt - it qualifies for a reduction of 50 per cent.
Remember that the household may qualify for other forms of financial help on top of the student discount.
More about Council Tax discounts, exemptions and financial help (home and community section)
Applying for a student discount
To get a student discount on your Council Tax, you’ll need an official letter from your college or university giving details about you and your course.
For more information, please visit the directgov website.
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