A money expert has urged Brits to check whether they’re being overcharged on their council tax, as numerous properties could be owed substantial refunds. Martin Lewis has highlighted that potentially hundreds of thousands of residences throughout England and Scotland may have been incorrectly classified within the council tax banding system.
He cautioned that this miscategorisation could have persisted for many years, resulting in reimbursements amounting to thousands of pounds being « commonplace ». Council tax is a levy imposed by local councils to fund various public services including refuse collection, road maintenance and library facilities.
A portion is also allocated to local police and emergency fire services which means your payment will vary according to where you live as well as your home type, with properties allocated to various bands.
This is what requires scrutiny, Martin said. In his most recent Money Saving Expert bulletin, he cautioned that the council tax framework is « broken ».
Within guidance published on his Money Saving Expert (MSE) website, he outlined how residences across England and Scotland might be incorrectly banded, subsequently resulting in inaccurate council tax charges.
He stated: « Hundreds of thousands of homes across England and Scotland are thought to be in the wrong council tax band. This means it’s important to check your property’s in the right band – something our tried-and-tested system can help you do. Some homeowners and renters have unknowingly been overpaying Council Tax for many years, even decades, because their bands are too high, so payouts worth £1,000s are commonplace. »
He revealed that « many » properties have remained in incorrect council tax bands since 1991. When a fresh council tax framework was introduced that year, insufficient resources meant numerous properties were assessed with « just a glance », by assessors simply driving past.
Fortunately for Welsh residents, the Government conducted a comprehensive reassessment of all properties, ensuring they now pay the accurate amount. However, this hasn’t happened in England and Scotland.
« So the flawed old valuation still dictates much of England and Scotland’s banding, which is why you could be paying more than your neighbour even though you live in exactly the same size property, » Martin said.
There are several methods to verify whether you’re being overcharged for your council tax. You can:
- Compare your band against neighbours’ in comparable or identical properties – either by asking them directly or checking the GOV.UK website
- Calculate your property’s 1991 value – the simplest approach is to use websites such as Nethouseprices, Zoopla and Rightmove. What to do if you suspect you’re in the incorrect band
If you reside in England or Wales and suspect your property has been placed in the wrong band, Martin advised that you should contest it. First, you’ll need to establish whether you can do this « formally » or « informally ».
To lodge a formal challenge, you must have resided at the property for no more than six months (whether you’re a homeowner or tenant is irrelevant, though tenants should inform their landlord as a courtesy). The Money Saving Expert website stated: « If you’re able to challenge formally (also known as a ‘proposal’), the Valuation Office Agency (VOA) must review your band. Although you don’t have to officially provide evidence about nearby properties, we’d strongly suggest you don’t skip that part. »
If you’ve been living there beyond six months, the VOA has a legal obligation to maintain the accuracy of the Council Tax bands register.
MSE explained: « This means you can still submit a request for an ‘informal review’ of your Council Tax band (use our template wording can help), though the burden is on you to provide compelling evidence that your band is wrong, to persuade the VOA to do the review (the following steps show what evidence to prepare). »
In Scotland, council tax bands are managed by the Scottish Assessors’ Association (SAA). Simply enter your postcode into the Council Tax Bands search facility on the SAA website.
MSE explained: « In Scotland, the Scottish Assessors Association (SAA) deals with Council Tax band challenges, known as ‘proposals’. As we mentioned above, in Scotland there isn’t an informal route to challenge your band if you can’t challenge formally. That means you should always go through the formal system of challenging, known as making a proposal. »
Further details can be found on the Money Saving Expert website here.
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