HOUSEHOLDS should ensure they are in the right council tax band to avoid missing out on £1,000’s.
Council tax is an annual fee you pay to your local council to help fund local services.
The amount you pay depends on where you live and what band you are in.
The bands range from A to H, with A homes paying the least and H the most.
The amount you pay typically rises each year in April, with local authorities setting the specific rate.
Last week, the Office for Budget Responsibility (OBR) said it assumes that council tax bills will rise by the maximum level of 5% next year.
Councils have the power to raise council tax by up to 5% each year, which is made up of a 3% permitted increase and extra 2% to help pay for social care costs.
However, some authorises opt for smaller yearly increases, depending on their financial circumstances.
It means a homeowner with a typical Band D property currently pays £2,280 in council tax but would see their bill rise to £2,394 from next year.
The OBR said council tax is predicted to raise £51billion in the current financial year.
With bills forecast to rise, it is important to ensure you are in the right band and not losing out on cash.
If you are in the wrong council tax band you could be owed money back as you could be paying more tax than you need to.
And it has been said that one in 20 homes in the UK or 400,000 people are in a too high council tax band.
Below we explain how YOU can check and how to claim money back.
How to check you are in the right council tax band
The first starting point is checking what band your neighbours are in.
This can be done by visiting the Gov.uk website.
Make sure the property is close in size and valuation to get a fair estimate.
If your neighbour is paying less than you, there might be a claim to be made.
But be warned – this does not always mean you are owed a claim.
It may be that you are not paying enough and flagging the issue could mean you are moved to a higher band.
But if you think your home is in the wrong council tax band, you’ll need to make a formal challenge.
To do this contact the Valuation Office Agency (VOA) in England and Wales.
If you live in Scotland the Scottish Assessors Association (SAA) in Scotland to can do this.
You will need to gather evidence showing you’re paying more – this could be having addresses of similar properties to yours in a lower band, for example.
If the VOA agrees that your property is in the wrong band, it will contact you to let you know your band will be changed.
This five minute hack got me a £2,000 refund
JOURNALIST Emma Robertson reveals how a quick, simple check saved her some serious cash.
Logging onto the government website to check our council tax band, I quickly realised we were paying £2,256 per year while our neighbours were paying £336 less.
Our home was listed as a Band E, while the similar three bed semi-detached houses either side were Band D.
I then looked at the houses nearby classed as Band E and noticed they were all extended houses and had also added another bedroom.
And that meant we had been overpaying since we bought the property in December 2018.
It was really straight forward. Once you’ve input your own postcode, the website lists all the addresses around you and what band they’re in.
I submitted a challenge online and it took five minutes to fill out and three months later I received a letter explaining I was due a £2,000 refund.
We are not alone – one in 20 homes in the UK or 400,000 people are in a too high council tax band.
It’s also important to note that your band could go up as a result of the challenge however – or your neighbours‘ property could be changed.
Firstly, you need to check your neighbours’ banding, which can be done through the government website.
And secondly, you need to do a valuation check of what your house would have been in 1991.
It was in 1991 that the new council tax system was launched and there wasn’t enough time to do the task accurately so mistakes were made.
As a result of that, over three million people have now challenged their banding and are still waiting for their refunds to go through.
But I was one of the lucky ones and just three months after submitting my challenge in March 2024, I received a letter advising me that we were being down-banded from E to D and that I was due a refund.
It can take up to two months for the VOA to review your case.
Could you be eligible for a council tax reduction?
Those on a low income could be eligible for a council tax reduction.
But whether you are eligible and what you will get depends on where you live.
Households in Birmingham can apply for Council Tax Support if they receive certain benefits such as Universal Credit or Employment Support Allowance.
The support is calculated as a means-tested discount.
This means the amount each household will have to pay towards their bill will depend on their household circumstances.
Meanwhile, in Manchester, you can claim Council Tax Support when you apply for Universal Credit.
You can also spread your payments to reduce the amount you are asked to pay on each bill.
Plus, if you are a pensioner you may also be able to get a council tax discount if you receive certain benefits.
Those on the Guarantee Credit element of Pension Credit could get up to 100% off their bill.
If you do not get Guaranteed Credit but have a low income and less than £16,000 in savings then you may still get some help.
Meanwhile, if you are a pensioner who lives alone then you will qualify for a 25% discount.
You can also apply for a 25% council tax discount if you live with someone who is severely mentally impaired.
To be eligible there must be no other adults in your household or everyone else in your home must have been disregarded.
If you are severely mentally impaired and you live on your own then you may qualify for a 100% discount.
How to apply for a council tax reduction
TO apply for a council tax reduction contact your local council.
If you are unsure which council area you live in then you can use the tool on the government’s website.
If your application is turned down then you can write to your local council and ask them to review it.
You should do this within two months of the date the local council tells you its decision.
Make sure to say what you think is wrong.
If this is unsuccessful then you can appeal to the Valuation Tribunal Service.
If you are struggling to pay then always contact your local council as soon as you can.
