The consumer champion warned around 400,000 households are entitled to Council Tax refunds but not claiming.
Martin Lewis warned around 400,000 households are entitled to Council Tax refunds but not claiming.(Image: ITV)
Martin Lewis is urging everyone to take a look at their finances this month to see if there are simple ways to unlock savings or boost household income. The bumper checklist in this week’s MoneySavingExpert (MSE.com) newsletter covers a dozen areas to check including mobile phone and broadband contracts, subscriptions, credit cards and Council Tax.
The financial guru warned that “up to 400,000 houses in England and Scotland are likely in the wrong (Council Tax) band and may be due thousands back”. He added: “Some find this easy to do, others get push-back and find it a hard fight. Do ensure you go through the guide carefully, speculative challenges without proper research are dangerous.”
Martin also urged people to check for a 25 per cent discount on their Council Tax bill as “millions are likely missing out”.
READ MORE: Martin Lewis urges married couples to claim income boost of up to £1,260READ MORE: Check for Council Tax discount of £900 before new bill arrives next month
Council Tax band checks and discounts aren’t new topics for the award-winning journalist, and he made no apologies for including them in his list of things to check as the reward could be a boost of hundreds or even thousands of pounds.
Trevor emailed to say that after watching The Martin Lewis Money Show Live on Council Tax he received a refund of £8,871 for an “for an incorrect banding going back 28 years. He added: “After watching your show I applied for our PAD and discovered our 4-bed house was listed incorrectly as a 6-bed and nearly 80sq m bigger. Thanks again for your programme.”
The full guide to ‘check and challenge’ your Council Tax band can be found on MSE.com.
Martin previously explained how this consists of two checks which may indicate that someone is in the wrong band – the neighbours check and the valuation check.
The neighbours check
This is where you have to compare your house to neighbours, in similar, or preferably identical properties, to see if you’re in a higher band.
You don’t have to ask your neighbours which Council tax band they’re on, just go to the Scottish Assessors Authority (SAA) website here, where you can see yours and your neighbours’ addresses.
If that check shows you’re in too high a band, move to the next step, the ‘valuation check’.
The valuation check
This is where you have to work out what your house was worth in 1991 because that’s what decides the bands.
To do it, you’ve got to take a valuation of your house, or a similar house and then convert it back through a house calculator – there are free tools online that will do this for you.
There are eight Council Tax valuation bands in Scotland, from A to H. Band A is the lowest, while band H is the most expensive.
The valuation Council Tax band ranges can be found on the SAA website here.
- Band A – Up to £27,000
- Band B – Over £27,000 and up to £35,000
- Band C – Over £35,000 and up to £45,000
- Band D – Over £45,000 and up to £58,000
- Band E – Over £58,000 and up to £80,000
- Band F – Over £80,000 and up to £106,000
- Band G – Over £106,000 and up to £212,000
- Band H – Over £212,000
This two-step checking process is essential and must be done before going ahead and challenging your local council. Martin warns that you should not begin the challenge process unless you pass both of these checks.
The full step-by-step guide on challenging your Council Tax band and more information on discounts and reductions available can be found on MoneySavingExpert.com.
Check if you could be exempt from paying Council Tax
You will not pay Council Tax if:
- You are a full-time student
- You are in the Armed Forces in Forces accommodation
- You live in a care home or hospital
- Your home is unoccupied and empty (up to six months) – for example, if you’ve gone into hospital
- You have a severe mental impairment (e.g. dementia) – if you only live with someone who has dementia, then you’ll be treated as a sole occupant as they will be disregarded, but you won’t both be exempt
Contact your local authority about your eligibility and how you can apply for an exemption – a link to all 32 local authorities in Scotland is at the bottom of this page.
Could you be eligible for a discount on your Council Tax bill?
There are some circumstances where you may get a reduction on your Council Tax and the amount of discount varies depending on your circumstances.
If you live alone
The full Council Tax is calculated assuming there are two or more people living in each home – if you live alone, you should apply to your local council for a discount – you could get a 25 per cent reduction, regardless of your financial circumstances.
If you live with someone under 18 or a student
Council Tax is not calculated for anyone aged under 18, full-time students, student nurses and some apprentices or trainees.
If you are a carer
Carers who look after someone in the household for at least 35 hours per week and who meet additional criteria may be disregarded for Council Tax purposes, contact your local authority for their eligibility criteria.
Just be aware, this doesn’t apply if the person receiving care is the partner of the carer, or is the carer’s child aged under 18.
Apply for Council Tax Reduction
You may be eligible to claim a Council Tax Reduction if you’re on a low income or claiming certain benefits.
You can also claim Council Tax support regardless of whether you own your own home or rent, or whether you’re working or unemployed.
Each local council is responsible for operating their own Council Tax support scheme, so the amount of support given across the country may vary.
The amount you will get depends on many factors, including:
- Which benefits you receive
- Your age
- Your income
- Your savings
- Who you live with
- How much council tax you pay
You may get more Council Tax support if you receive a disability or carers benefit.
If you receive the Guarantee Credit Part of Pension Credit you may even get your Council Tax paid in full. If you don’t have it, but are on a low income and have less than £16,000 in savings, you may still get some help.
Local councils
Contact your local council from the list below to apply for a Council Tax Reduction or discount.
