Some people could be paying more than they need to (Image: Getty)
People could save on their council tax in England, Scotland, and Wales by making a few quick checks, according to MoneySavingExpert (MSE). It could stop people from overpaying on bills, like ‘thousands’ across the country do without even realising.
Council tax is an annual fee charged by local authorities. It is used to fund local services like policing, rubbish collection, and libraries.
Generally, anyone aged 18 or over who owns or rents a home cannot opt out of paying council tax. How much people pay will depend on their property type – but some could be overpaying by thousands, according to Martin Lewis’ MSE team.
In his 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.”
There are several ways to check if homes could be entitled to a permanent discount or if the local authority owes you money for any overpayments. Some are easy to check online and take minutes to start a claim.
Check your council tax band is right
Properties are assigned a ‘band’ which determines how much council tax you pay each month. But, MSE claims that many homes are in the wrong council tax band “and have been since 1991”.
Those in charge of setting these bands across the country did so at a glance, rather than taking detailed information from properties. This could mean two neighbours are paying different rates for the same-sized property.
People who think they could be overpaying should start with the neighbour check. This doesn’t involve awkwardly asking them for a copy of their bill, as records can be checked for free online. For England, use GOV.UK and for Scotland, use the Scottish Assessors Association (SAA).
If neighbours in similar properties are in a lower band than you, then you may have a claim, so it is important to follow up with the valuation check. But this could lead to neighbours being bumped up a band because theirs might be too low.
If you’ve done the checks above and think it is likely your property is banded incorrectly, you may choose to challenge it on GOV.UK.
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Discounts could make council tax cheaper
Certain people may be entitled to reduced council tax rates based on who they live with. These are not applied automatically, so people need to be aware if they meet the criteria.
For some, it covers a portion of their 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 your home has been adapted for a disabled person, then you’re eligible to drop a council tax band. Where your property is already in band A (the lowest council tax band), your council tax bill will be reduced by 17% instead.
MSE added: “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 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.
