How to check if you're paying too much council tax as man gets £7,000 refund
Concerned you're paying too much council tax? Here is how you can check, as Martin Lewis tip saved savvy homeowners over £7,000.
The nation's number one money saver has put out a new alert on his website, urging Brits to double-check their council tax band to see whether or not they're paying the correct amount.
Sounds like a lot of faff? Then you may want to read about the several success stories from MSE readers who've challenged their band and received thousands of pounds in payouts.
Lewis highlighted one success story in his weekly 'Money Tips' email, revealing that one reader contacted him to say that he was now saving £600 a year after following his advice.
Advert
"I had always suspected my council tax band was too high," the man, named Kevin, said in his email, explaining that he'd followed the guidance on the MSE site.
Kevin went on to reveal that 18 months after first challenging, he had now been able to reduce his council tax band from E to D, meaning he is now able to save £50 a month, which comes to a total of £600 a year.
The lower rate wasn't all Kevin received either, as he was also eligible for a refund, receiving a whopping £7,213 from the council.
He's not the only lucky Brit to receive a payout either, as fellow MSE reader John revealed back in July that he'd been refunded £7,603 after a successful challenge to the rate he was paying for his flat in south-west London.
However, John did note that the entire sum wasn't paid out to him, adding that £3,038.57 was kept as credit for future payments.
He was later able to receive a full refund after challenging the council.
How do I challenge my council tax band?
Homes across England and Scotland are placed in council bands ranging from A to H, based on the valuation of the property in April 1991.
In Wales, the council tax band runs from A to I and is based on how much the property was worth in April 2003.
The council tax bands for England and Wales are as follows (based on property value in 1991):
- Band A: Up to £40,000
- Band B: £40,001 – £52,000
- Band C: £52,001 – £68,000
- Band D: £68,001 – £88,000
- Band E: £88,001 – £120,000
- Band F: £120,001 – £160,000
- Band G: £160,001 – £320,000
- Band H: Over £320,000
You can check your council tax band here.
If you believe your home is currently in the wrong band, a challenge can be submitted via the Valuation Office Agency (VOA) on the government website for residents in England and Wales.
You can also request your home's 'property attribute data' (PAD) to make sure it's correct, which can help when challenging a council tax band.
For more detailed guidance on how to challenge your council tax band, head to MoneySavingExpert.
Brenna Cooper