Tax Base Advice

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  • #43932
    Anonymous
    Guest

    Hi,

    I'm having a bit of a dilemma over how to produce the Tax Base return this year  and would appreciate a bit of advice.

    Should I be producing:

    1) An 'old style' Tax Base which does not reflect any reductions due to CTS

    or

    2) A 'new style' Tax Base that reflects all the reductions expected under the new scheme

    or

    3) An amended 'new style Tax Base that reflects most of the changes under the local CTS scheme but omits the impact on the parishes.

     

    I've lost track of what has been consulted on and what has been agreed, but it strikes me that if (as I believe that I should) I opt for option 2, then how can I do this before Full Council agrees the proposed CTS scheme, because to do so before would risk an incorrect Tax Base being set?

     

    What are others doing or planning to do? – All my Tax Base modeling thus far has been done in Excel, and as far as I am aware none of the major suppliers have yet issued software that would exactly reflect proposed schemes within the Tax base, so I think i would have to go with my own calculations.

     

    any advice gratefully received.

     

    Mark

    #124784
    Rob Westwood
    Participant

    Hi Mark
    I think the main requirements are set out in the consultation: Localising support for council tax – Council tax base and funding for local precepting authorities: Consultation

    This is the link
    http://www.communities.gov.uk/documents/localgovernment/pdf/2206075.pdf

    In the pdf at the back they have attached draft regs that they say they will have in place by 30/11/12. I thought that among all the DCLG’s inexpert thrashing about at least here they arrived at a pragmatic solution. That said they could have simplified the calculation which would have helped but naturally they haven’t.

    Because CTax is set by band they are stincking to that. To take account of CTS councils will have to calculate the benefit reduction by band. E.g if you have 10 full benefit band As then the Z factor for band A is 10. Obviously it becomes much trickier where there lots on awards of less than 100% liability. I think you will have to divide the total amount of benefit paid per band and divide that by the relevant band Ctax to arrive at the Z figure.

    I have not really thought about the timing but the relevant period for setting the tax base is still set to be between 1st December and 31st January.
    Like you I am not aware of the consultation results or if DCLG have responded.

    #124785
    benwat
    Participant

    Hi Mark

    It’s option 2 or 3 that you will need to do, but as Rob says, which option will depend on the response to the consultation on tax base and funding for local precepting authorities. In it’s recent communication the DCLG said the response would be issued “by early November”.

    If you are an Academy site then you can buy Capita’s modelling software to look at the effect CTRS has on your taxbase. It will also model different scenarios for changes to exemptions and discounts, and introducing a long-term empty premium. I’ve been using it myself this week and it’s really good.

    As far as timing is concerned, at my authorities we will be taking three reports on the same day – one to deal with changes to discounts and exemptions; one to deal with CTRS; and, a final report to set the taxbase (assuming the first two reports go through ok!). We are planning to do this in December.

    #124787
    Anonymous
    Guest

    thanks both!
    Mark

    #124790
    Anonymous
    Guest

    Our timing is the same as Mark’s. I beleive the council tax manager is providing two tax base calculations – b) and c)

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