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HMRC internal manual

National Insurance Manual

NIM02081 - Class 1 NICs : Earnings of employees and office holders : Community Charge paid by the employer : Categories of Community Charge

The Community Charge was introduced in Scotland on 1 April 1989 and in England and Wales from 1 April 1990. It was replaced by the Council Tax from 1 April 1993. Neither the Community Charge nor the Council Tax were introduced in Northern Ireland.

There were three main categories of Community Charge:

  • Personal Community Charge – paid by all eligible adults aged 18 and over, subject to certain exemptions. Liability was personal to each individual.
  • Standard Community Charge – a charge on a second or more homes, or on premises used for both domestic and business purposes. Unlike the Personal Community Charge this was a charge on property.
  • Collective Community Charge – paid on residential homes and similar properties where a number of people resided. Such establishments were likely to be used for both domestic and business purposes and, as in respect of Standard Community Charge, the charge was on property.

Business rates were chargeable on properties used for non-domestic purposes.

Community Charges in Scotland included Community Water Charge. In England and Wales water charges continued to be based on ratings values.

See NIM02082 for guidance regarding liability for Class 1 NICs where an employer meets the Personal Community Charge and NIM02083 in respect of the Standard Community Charge.