People could be overpaying without realising it if they don’t check
People could be entitled to discounts that cover 100% of the bill(Image: coldsnowstorm via Getty Images)
Households could slash their council tax bills in England, Scotland, and Wales by carrying out some simple checks, according to MoneySavingExpert (MSE). The move could prevent residents from overpaying on bills, as ‘thousands’ of people are already doing so ‘without realising’.
Council tax is an annual charge given to local authorities. It is used to help with funding essential local services such as policing, rubbish collection, and libraries. Typically, anyone aged 18 or over who owns or rents a property must pay council tax.
The amount owed depends on property type – though some may be overpaying by thousands, Martin Lewis’ MSE team warns. In his latest weekly email to followers, Martin Lewis claims: “Council tax was introduced as a rush job in 1993 to replace the then relatively new form of local taxation – the community charge (aka the poll tax).
“The speed at which it was set up meant there were some serious flaws in the system, many of which we still have 33 years later – and that has left large numbers overpaying.”
Multiple ways are available to see if properties qualify for a permanent reduction or if the council owes refunds for previous overpayments. Several checks can be completed online in minutes to initiate a claim, according to the Express.
Check your council tax band is correct
Properties are all given a ‘band’ which sets the monthly council tax payments for people living in the home. However, MSE suggests lots might be stuck in the wrong band “and have been since 1991”. Those responsible for determining these bands nationwide did so based on quick assessments, rather than gathering comprehensive property details. This means two next-door neighbours could be charged different amounts for identical homes.
People who suspect they’re being overcharged should begin with the neighbour test. This doesn’t require the awkwardness of requesting to see their bill, as records are freely accessible online here at GOV.UK for England or the Scottish Assessors Association (SAA).
If neighbouring properties of similar size are in a lower band than yours, you may have grounds for a challenge, making it important to proceed with the valuation review. However, this process could result in neighbours being moved up a band if theirs is incorrectly lower than yours.
After completing the above checks and believing your property has been incorrectly banded, you can lodge a challenge through GOV.UK. There is a guide on the MSE website of all the relevant steps needed to make a formal appeal.
Discounts that could lower council tax bills
Certain people may qualify for reduced council tax charges depending on who lives in their home. These reductions aren’t automatically applied, so residents must check their eligibility and apply for them.
For some households, this covers part of the bill, while others may be entitled to 100% cover. Council tax defines ‘qualifying adults’ as anyone over 18 who is not a student, carer or severely mentally impaired (SMI).
- 25% discount: One eligible adult (living alone or with under 18s) or one eligible adult with live-in carer/students and/or SMI adult(s)
- 50% discount: SMI adult with live-in carer(s) or SMI adult with students and live-in carer(s)
- 100% discount: All students (living alone, in a group or with under 18s) and all SMI adults living alone (or with under 18s)
If you can prove that your home has been adapted for a disabled person, you are entitled to drop down a council tax band. If your property is already in the lowest bracket (Band A), your council tax bill will be cut by 17% instead.
The MSE team also said: “If you own a second home, then there are scenarios where your council will give you a discount. This is most likely if you have to live in it for your job – for example, you live in a second home during the week but have your main residence elsewhere. It’s up to the council to decide both if it’ll offer the discount and how much that will be.”
For those in England and Wales, go to GOV.UK to find your council’s details and then apply. In Scotland, it’s done through mygov.scot to find your council’s details and then apply.
