Why isn't council tax in the UK deducted directly via wages? 15 Apr 2023

Council tax in the UK is not deducted directly from wages because it is not a form of income tax. Income tax and National Insurance contributions are collected directly from an employee's wages by their employer and paid to HM Revenue and Customs (HMRC) on their behalf. Council tax, on the other hand, is a local tax that is collected by local authorities to fund services such as rubbish collection, street cleaning, and local schools. Order Payslips Online

Each household in the UK is responsible for paying council tax, and the amount they pay is based on the value of their property and the number of people living in it. Council tax is usually paid in instalments directly to the local council, either by direct debit, online payment, or through the post office.

The reason council tax is not deducted directly from wages is because it is a separate tax from income tax and is based on different criteria. It is also collected by local authorities, rather than HMRC. Collecting council tax via wages would require significant changes to the tax system, including the creation of a new system for calculating and deducting council tax, which could be costly and complex to implement. It is therefore more practical for council tax to be collected directly from households, rather than through the payroll system.