As a Parish Clerk, you will be involved in setting the Precept for your Parish Council
What is a Precept?
A precept is a tax levied by City, Town, and Parish Councils and Parish Meetings on local residents to fund community services. These services include cemeteries, playing fields, public toilets, street furniture, open spaces, and more.
Parish Councils work closely with us to set and manage your precept, which is a key component of local funding. Here is the process for setting your precept.
Step 1 - You determine your budget for the upcoming year, considering all planned expenditures and expected income. The precept is the amount needed to cover any shortfall
Step 2 - You can consult with us to ensure your budget aligns with broader community needs and priorities. This helps avoid duplication of services and ensures efficient use of resources
Step 3 - Once the budget is finalised, you can submit your precept request to us by the mutually agreed deadline. This request is recorded and approved as part of the overall council tax setting process
Step 4 - The Council Tax amount payable by a resident is based on a Band D equivalent charge and is a simple calculation based on two factors:
- The amount of money that your Parish Council wishes to spend in the forthcoming year. This is known as the precept amount. £25,000.
- The number of dwellings in your Parish expressed in Band D equivalents – this is known as the tax base. For example, if your Parish has 250 properties in it and they are all in Valuation Band H, then your tax base is 500 (i.e.250 x 18/9). In reality, the calculation will be more complex as most Parish Councils have properties in most or all bands.
Once the two factors above are known, the Band D Council Tax is calculated by dividing the precept amount (per 1 above) by the tax base (per 2 above).
Using the examples above the Council Tax for a Band D property would be:
£25,000 divided by 500 (Band D equivalents) = £25,000 / 500 = £50.00.
The number of band D properties may change each year resulting in a change to the residents council tax even if the Precept remains the same.
Step 5 - We then issue bills and collect council tax, which includes the precept, from residents
We must both ensure transparency in how the precept is calculated and spent. Together we provide detailed information to residents about the precept and its impact on council tax bills
Working in partnership helps ensure that the precept is set and managed effectively to support the delivery of essential local services.
In accordance with the Parish Charter, we will:
- consult with you on proposed changes to service provision and on budget implications in a timely manner
- provide information in a timely manner, such as the tax base, to support and assist you in determining your precepts
- pay the precept to you in two equal instalments, on the last working day of April and last working day of September (any precept under £5,000 would be paid in one instalment at the end of April)