We live in a Detached house and our closest neighbour is about 20 meters away.
My whole family play instruments...
Me: Electric Guitar, (electronic) drums and bass
Wife: Clarinet and piano
Son: Clarinet, bass and piano
Daughter: Flute
We have a good relationship with the neighbours, and they have accepted that we need practice time.
Their dog barks incessantly, but we've never officially complained, just had a friendly word with them.
We don't report them, they don't report us... Simple!
We don't play any later than 7pm, or earlier than 9am.
Neighbours are happy, and the council or police have never been called to stop us.