Martin Lewis says ‘some people owed £1,000’ in council tax
Yet council tax bills – especially if they increase – are a stretch for many, and while it’s important that people pay their dues, it’s equally worth checking you’re not missing out on legitimate discounts and reductions. So, let me take you through my key council tax need-to-knows…
Up to 400,000 homes in England and Scotland are in the wrong band
Council tax was first introduced in Great Britain in 1993 (Northern Ireland has a different system). It’s a payment based on the value of your home – homes are banded from band A the least expensive, to band H, most expensive (Band I in Wales).
Before the tax came in, a stop-gap ‘2nd-gear’ valuation of all homes was done. Literally people in cars with a clipboard assessing a band.
Yet in England and Scotland that stop-gap has never been updated, and is still what dictates most homes bands – meaning there’s been estimated to be up to 400,000 homes in the wrong band (Wales has more recently been re-assessed). Some will be paying too little, some too much, all the way back to 1993, and could be backdated.
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I first came up with my ‘check and challenge your band’ system back in 2006, and I’ve had 10,000s or possible more successes since, like Karen who emailed “Queried our band and got a £6,300 refund backdated to 1993 plus our monthly charge is now approx £45 less. Thank you so much.”
You can’t ask for your band to be lowered, only evaluated, and to stop yours, or worse your neighbour’s band increasing, there are two checks you should make.
- The Neighbours check: Are you in a higher band than neighbours in similar or better identical homes (see your and their bands at www.voa.gov.uk in England and www.saa.gov.uk in Scotland).
- The valuation check: Effectively back calculating what your house was worth in 1991 when bands were set. I’ve a free tool to help at www.mse.me/counciltax (which also includes far more help on how to do this).
Only if BOTH of these stack up then it’s worth asking for them to check if you’re in the right band (for how to do this see the link above).
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Live alone, with under-18s or full time students? There’s a single-person reduction of 25 percent
Those under aged 18 and full-time students are disregarded for council tax purposes, so a single parent would be entitled to this. All student households pay nothing. Live-in carers in some circumstances are exempt too.
Do you live with someone with a ‘severe mental impairment’? You could me missing discount worth £1,000s
If someone has a diagnosed severe mental impairment, which includes some with Alzheimer’s, Parkinson’s, strokes and more, and are eligible (not necessarily claiming) for some benefits eg disablement allowance or incapacity benefit – they may be disregarded for council tax purposes.
Meaning they don’t have to pay council tax if they live alone, and get 25 percent off if they live with one other adult. Plus, some councils backdate it, leading to £1,000s back. This can be complicated so do read the full details at www.mse.me/SMI.
Had your home adapted for a disabled resident?
Rather than a discount you may be able to get your council tax band lowered, speak to the council.
On universal credit/benefits you could get up to 100 percent off
Council tax reductions are long standing discounts of up to 100 percent, which you apply for directly with your local council (details of your council is at www.gov.uk/apply-council-tax-reduction).
Clearly many more people are now eligible, as so many more are claiming universal credit (do apply for that first, if you’re planning to try both).
This is in addition to any benefits or universal credit you receive, but amounts depend on the individual councils rules.
All those on the main guaranteed element of pension credit are due a reduction too, and some on the savings element are too.
Martin Lewis is the Founder of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip
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