Should I pay my council in full for the year or in instalments?

In April's pay packet my husband and I can afford to pay the council tax (拢943) in full for the year. If we were to pay in monthly instalments they would be around 拢94p/m.

However we would love to do our back yard with the full amount and pay in instalments. I have our 1st baby due in Sept, and although I know we'd be ok financially on my maternity pay, things can happen (car proving expensive, unexpected storms or floods etc) that you can't foresee. If we paid our council tax in full now, the lack of instalments may come in crucial should a costly, unexpected event occur.

I'm weighing up whether to pay it in full (boring but safe) or pay in monthly instalments and spend the money on tranforming our dismal back yard into something vaguely attractive.

If I ever needed to claim council tax benefit (worst case scenario), would they decline because I've paid it in full? And are homeowners entitled to council tax benefit?

Legislation allows you to pay in ten monthly instalments. twice yearly ( 50% in April and 50% in October ) or you can pay annually on presentation of the bill ( i.e. in April of the relevent tax year ). It doesn't make sense to pay up front as that money should be earning some sort of interest for you, however small that may be. You have done well to consider your budgetting needs and by all means pay by instalments and use the savings now to better your home. As to council tax benefit in the future should your personal circumstances change, if you are elligible, you will receive an award set against your current bill from the time you make application ( actually from the Monday following the date of application receipt ) and if that puts you into a credit situation ( i.e. having paid up front ), then you will receive a refund or it may simply reduce any outstanding instalments. You cannot lose from a benefit award if the pay up front. It's your money, after all! Good Luck ..

Pay by instalments whenever you get the chance, and especially when there are no interest charges. My local authority divides the council tax into ten equal payments, which has the added benefit of giving me two 'free' months as well (February and March !

If you qualify for council tax relief, the council continues to take payments from your account, but just before that happens, they credit your account with the relief you qualify for.

Council tax benefit is available to anyone on Job Seekers Allowance, and probably other benefits as well. If you pay in full, and then later qualify for relief, you will get it back as relief payments.

Good luck with the garden, and the new baby !

This should answer your questions on benefit.....http://www.dwp.gov.uk/lifeevent/benefits...
But really, you need to do what best for you. Personally, if I could afford it I would love to get the years council tax over and done with!

First of all congrats on baby. My advice would be keep a little aside fro a rainy day and pay the tax in instalments, after all why give them your money before you have too!
If you did get into the worst position then the fact that you were a homeowner would not make difference its based on ability to pay and you have to have a roof over your head.
Keep the additional money and pay monthly and give yourself a cushion for any unforeseen problems.