Financial Management

Setting and Calculating Council Tax

Council tax levels are set in February each year by full council. Following budget setting, the council is required to publish certain information about council tax when it issues your bill.

Council Tax explained

For further information on:

  • Who has to pay council tax;
  • how your council tax is calculated;
  • discounts;
  • local council tax support.

Please visit our Council Tax services

 

Your Council Tax Bill

The presentation on council tax bills, including how the percentage increases are shown, is required by Government legislation and the total amount will include precepts from four organisations:

  • The Isle of Wight Council.
  • The Police and Crime Commissioner for Hampshire.
  • The Hampshire and Isle of Wight Fire and Rescue Service.
  • The Town or Parish council relevant to your area.

The council tax increase for the Isle of Wight Council is calculated using our total amount of council tax. For example: the main ‘Isle of Wight Council’ line plus the ‘Adult social care precept’ line.

The worked example below sets out the calculations. The amounts used in the example below are for a Band D property. The calculations for other bands can be found in the 'calculation of precept increases' document below.

Isle of Wight Council’s total 2020/21 council tax = £1,600.87 (*see note below)

£1,600.87 is the sum of the main council line (£1,456.26) plus the adult social care precept line (£144.61)

Plus: Increase for all council services 2021/22 = £31.93 (1.99%)

Plus: Increase specifically for adult social care 2021/22 = £48.02 (3%)

Equals: Isle of Wight Council’s total 2021/22 council tax = £1,680.82

This is broken into two lines on bills. £192.63 is shown on the adult social care precept line (£144.61 plus £48.02), with the remainder (£1,488.19) shown on the main council line.

Note*

This figure differs from the Band D amount shown on 2020/21 council tax bills due to the establishment of the new Hampshire and Isle of Wight Fire & Rescue Authority on 1 April 2021. For comparison purposes the council's level of Band D Council Tax for 2020/21 has been reduced by £62.18 from £1,663.05 to £1,600.87, reflecting the amount of the council's Council Tax that related to the funding of Fire Services. The re-stated level of Council Tax for the Isle of Wight Council for 2020/21 is known as the "Alternative Notional Amount". The Isle of Wight Council's element of the Council Tax will no longer include a Fire Services element. Instead Hampshire & Isle of Wight Fire & Rescue Authority will form a separate element of the Council Tax in the same way as the Hampshire Police & Crime Commissioner. The Isle of Wight Council will remain the billing authority and will collect the Council Tax from residents on behalf of Police and Fire and then pass over those funds to them. Further information can be found in a document published by the Secretary of State for Housing, Communities and Local Government: Draft Referendums relating to Council Tax Increases (Alternative Notional Amounts) Report (England) 2021-22 (publishing.service.gov.uk)

We are also required to publish the following notices which provide further information about your council tax bill:

Report fraudulent claimants

If you know someone who is fraudulently claiming Housing Benefit please call the Department of Works and Pensions hotline 0800 854440. Your call will be dealt with confidentially. 

Or you can report in writing by post to: NBFH, PO Box 224, PR1 1GP.