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Original poster

Council tax exemption for a student who earns very well

64 replies

tiredofwork · 15/08/2021 15:58

Just for traffic / out of interest, following an offline discussion with someone.

Do you think someone who is a full-time student but also brings in a very good wage (say, £50K-£60K, a mature student still working in their previous profession) should be entitled to claim student exemption from the council tax (around £2K, they are a homeowner)?

YABU - no, this is a measure designed for young people with pocket money wages and rented shared households, this student is an atypical case and should not exploit this opportunity.

YANBU - they are legally entitled to it due to being a student, and there's nothing morally wrong with it.

OP posts:
Sparklesocks · 15/08/2021 16:08

They’re doing well to manage a full time degree with a job that pays them £60k! When I was a student I could only manage a few shifts at the local nightclub alongside my studies.

But yes the council tax exemption is meant for all students regardless of their income/background so it is what it is. Normally it’s because students can’t work full time because of their studies so need the allowance. I suppose it’s the similar for students from very well off backgrounds who are funded by families etc anyway - they could probably afford it too.

girlmom21 · 15/08/2021 16:10

It's a reduction given to people for many, many reasons and unless you're the student it's none of your business.

If you are the student and you want to pay full council tax then knock yourself out.

Original poster
tiredofwork · 15/08/2021 16:14

@Sparklesocks

They’re doing well to manage a full time degree with a job that pays them £60k! When I was a student I could only manage a few shifts at the local nightclub alongside my studies.

But yes the council tax exemption is meant for all students regardless of their income/background so it is what it is. Normally it’s because students can’t work full time because of their studies so need the allowance. I suppose it’s the similar for students from very well off backgrounds who are funded by families etc anyway - they could probably afford it too.

I am divided on the topic myself, to be honest. In this specific case, the old profession is just generally well paid (say software development), and the new is much softer and more hobby-like for them (they don't plan working in this area), so it is feasible to combine. So maybe my opinion on this topic is a bit biased because it just feels like getting a discount for pursuing an expensive hobby.
OP posts:
Sleepyhungryfattyanddoc · 15/08/2021 16:18

They’re paying tax and they’re paying tuition
So I’d say they’re still giving plenty more back than they’re taking out

They’re entitled to it, it’s not based on affordability.

Original poster
tiredofwork · 15/08/2021 16:22

@Sleepyhungryfattyanddoc

They’re paying tax and they’re paying tuition So I’d say they’re still giving plenty more back than they’re taking out

They’re entitled to it, it’s not based on affordability.

I know they are legally entitled to it. My question was more in the grey area of whether it is the "right" thing to do.
OP posts:
AdventuresDownRabbitholes · 15/08/2021 16:23

The universal nature of this benefit, for all students, means it's cheap to administer.

If they started means testing it, then they'd spend more on the admin than they'd ever save - such people are vanishingly rare.

somewhereovertherain · 15/08/2021 16:25

As a full time student in this situation I'm entitled to it so I claimed it. Saved me 750 a year

Skiptheheartsandflowers · 15/08/2021 16:27

Do you pay over and above what you're required to in tax, OP?

I'm far more concerned about companies who make massive profits exploiting loopholes in order to avoid paying tax, than I am about one individual who will be in this position for 3 years maximum.

bruffin · 15/08/2021 16:31

My dd has just graduated but staying on in the same house that is otherwise all students and has to pay 2000 in council tax by herself earning 25k and that is with the 25% discount

FrangipaniDeLaSqueegeeMop · 15/08/2021 16:31

My philosophy on this is that there are very, very few times in life where you get something back from the Government - don't me a martyr, take it with both hands because one day they'll charge us for having eyes in our head and you may as well get a confession while you can

FrangipaniDeLaSqueegeeMop · 15/08/2021 16:32

*concession 🤦🏼‍♀️

girlmom21 · 15/08/2021 16:40

@bruffin

My dd has just graduated but staying on in the same house that is otherwise all students and has to pay 2000 in council tax by herself earning 25k and that is with the 25% discount
If she's no longer a student and is living with other adults is she actually entitled to the 25% off? Is that because she's the only non-student so the others don't class as 'adults'?
Mummyoflittledragon · 15/08/2021 16:46

As this is a hobby degree, I 100% think the person should be paying full council tax.

MadeOfStarStuff · 15/08/2021 16:57

They’re not wrong to claim what they’re entitled to but I don’t think anyone earning that kind of money should be entitled to not pay council tax.

newnortherner111 · 15/08/2021 16:57

They should abide by the law, and if this loophole exists, perhaps get your MP to campaign for a change.

LadyCatStark · 15/08/2021 16:58

They’ll be paying a shit load of tax and national insurance while some people get everything handed to them on a plate so why shouldn’t they claim what they’re entitled to??

bruffin · 15/08/2021 16:59

@girlmom21
From the council website
If there is only one person who is not in full time education in the house they are liable for council tax but will get a 25% reduction on their bill.

TheUndoingProject · 15/08/2021 17:01

I think expecting people to volunteer to pay more tax is a very high moral standard. They’re entitled to the exemption and changing that would cost more to administer than would be clawed back.

pinkyredrose · 15/08/2021 17:01

They should abide by the law

They are!

ErrolTheDragon · 15/08/2021 17:01

If she's no longer a student and is living with other adults is she actually entitled to the 25% off?
Is that because she's the only non-student so the others don't class as 'adults'?
If there's only one person in a house paying council tax they get a reduction whether there's others who don't have to pay or not, I assume. That seems entirely correct.

Stealbee · 15/08/2021 17:04

I don't imagine many people would be enough of a martyr to pay council tax when they don't have to, why would you?

memberofthewedding · 15/08/2021 17:06

I claimed CT exemption right upto the time I finished my Ph.d. I was also working at the uni as a tutor. However I believe in claiming all the concessions you legally can.

girlmom21 · 15/08/2021 17:13

Thanks for clarifying @bruffin - I was just being nosey really Smile

TractorAndHeadphones · 15/08/2021 17:30

Degrees are expensive and cost a lot of time and money so no, I don't begrudge anyone studying taking advantage of anything the government offers.
If it's a 'hobby' degree it's likely to be even more expensive (at least £7000 a year) so they're still putting in several thousand of their own money.

Reallyreallyborednow · 15/08/2021 17:35

My dd has just graduated but staying on in the same house that is otherwise all students and has to pay 2000 in council tax by herself earning 25k and that is with the 25% discount

When I was a student I took in my jobless brother. It took him a year to find a job- he did a couple of unpaid internships etc.

In some wierd loophole this meant I was liable for the full 75% of council tax. Even though my brother was unemployed, and had we not been related we would have had a complete exemption- because we were related I was expected to support him during his unemployment, which meant i was liable for the council tax!