Martin Lewis urges everyone to do two checks that could help you claim back thousands of pounds
Martin Lewis has shared two helpful tips that could help you claim back thousands of pounds – are you eligible?
The founder of MoneySavingExpert is encouraging households to “check and challenge” their council tax band.
Council tax is a charge that local councils make residents pay. The money paid goes towards the maintenance of roads and services such as street cleaning.
The amount of council tax you pay is based on the value of the property you live in.
Each property is placed in one of eight bands and these show what a home might have sold for in April 1991.
It does not matter if your home was built recently, the band is based on an estimation of what its value would have been in 1991.
You can find out what band you are in by visiting https://www.gov.uk/council-tax-bands.
However, Martin Lewis told viewers on Good Morning Britain that just shy of a half a million households are thought to be in the wrong council tax band.
“400,000 are likely in the wrong band. So people are simply paying the wrong amount and they [the government] make it far too difficult to challenge that,” said Mr Lewis.
He added that if you successfully prove you have been overcharged for the tax, you can get the money back.
Plus, if you have been overpaying for a number of years – or even decades – the council will be required to pay you a backdated payment, so you could be entitled to thousands.
“Many [successful applicants] have had thousands [of pounds] reinstated,” the expert shared.
Mr Lewis detailed two checks viewers at home can carry out the ‘neighbours check’ and the ‘valuation check’.
The neighbour check
Martin said to find a property in your neighbourhood as identical as possible to yours and compare bands.
Don’t worry you do not have to get in contact with your neighbour to find out what their band is, it is completely free to check online.
You can check what band your neighbour is in by visiting this website.
How to challenge your council tax band
Here is what government officials say challenging your council tax
You can challenge your Council Tax band if there has been a change that affects the property or you think your band is wrong, according to the government.
For properties in England and Wales, you submit your challenge to the Valuation Office Agency (VOA).
You can propose a new band if there’s been a change that affects the property. One of the following must apply:
- your property has changed – for example, it’s been demolished, split into multiple properties or merged into one
- your property’s use has changed – for example, part of your property is now used for business
- your local area has changed physically – for example, a new supermarket has been built
You can also challenge your Council Tax band if there have not been any changes to the property recently but you think the band is wrong.
You’ll need to provide supporting evidence showing why you think your property is in the wrong band – for example, details about properties that are similar to yours but in lower tax bands.
Residents in Scotland use the Scottish Assessors’ Association (SAA).
If you find that your neighbours in a similar property to you have a lower band, then you may have a claim.
However, Martin cautioned that this could mean your neighbours paying less are in the wrong band and not you.
So instead of you getting your tax cut, your neighbours could end up paying more.
According to the MoneySavingExpert website, this is not enough evidence to prove you are in the wrong band.
But it enables you to check out various property prices on your street and check you are on the right track if you do want to challenge.
Valuation check
Martin said it also said it also crucial you carry out his second ‘valuation check’.
If you bought your house after 1991, you just need to find its price and date of sale to do this.
If you rent or bought earlier than this then you need to find an estimated price.
This can be done online using free house price websites such as Zoopla or Rightmove.
It can be tricky to figure this out but the expert’s website has a list of tools to help you navigate this.
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You’ll first need to find out what council tax band your home is in to work out how much you have to pay.
This can be done on Gov.uk for homes in England an Wales, or on the Scottish Assessors website if you live in Scotland.
You’ll need to enter in your postcode and scroll through the listed addresses to find yours.
Local councils must contact you directly to let you know if your bill is going up or down, for example, via a letter or email.
If you still haven’t heard from your council, you should contact them directly.
The contact details of your local council can be found on the Gov.uk postcode checker.
Council tax discounts
Council tax can be an expensive costs but there are a number of discounts some households are eligible for.
If there are two adults within a household then you must pay 100% of the tax.
However if it just one adult you are allowed to pay just 75%.
If no adults are in the house you do not have to pay any.
Households on low income or benefits may also be eligible for a discount of up to 100%.
Meanwhile, disabled residents in adapted homes may get band lowered.
If you are on Universal Credit and you want to check if you qualify for a discount you must apply through the council.
To see if you are eligible for a discount, you’ll need to visit the government’s website.
Plus, we have rounded up the full list of conditions that qualify for council tax discount of up to £2,100.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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