6 days ago
Martin Lewis Council Tax checks could cut monthly bill and bring huge refunds
There are four crucial checks people need to do which could result in payouts worth thousands of pounds.
Martin Lewis is urging everyone paying Council Tax to check if they are forking out too much money by not claiming a discount or being in the wrong band. In the latest issue of the MoneySavingExpert ( newsletter, the consumer champion breaks down the simple checks which could lead to refunds worth thousands of pounds.
Council Tax bills increased around the UK in April, putting pressure on households to factor in higher outgoings to their monthly finances, but the financial guru warns hundreds of thousands of people may be overpaying.
Martin wrote: 'There's a lot wrong with Council Tax - unsurprisingly, as in England and Scotland, we still rely on a supposedly stopgap valuation done 34 years ago, to dictate what band a home's in... even though much of the country is now unrecognisable compared to then.'
Martin's four 'crucial reductions to explore':
Check if you're in the right Council Tax band
Check for a Council Tax discount if you are single, a student, or have physical or mental health disabilities
Check for Council Tax Support if you're on a low income
Check if you are owed Council Tax Credit
The financial guru shared a step-by-step guide on how to 'check and challenge' your Council Tax band if you think you're in the wrong one. He also highlighted how an estimated 2.25 million people on benefits are missing out on Council Tax savings of up to £1,500 each year.
Martin also reminded people living on their own that they are entitled to a 25 per cent discount on their annual bill.
It's important to be aware that in Scotland, people on a low income may be eligible for the Council Tax Reduction Scheme, which can provide annual savings of up to £850 and is only available north of the border. Full details on here.
Martin urged up to 2.25m people on benefits including Universal Credit and Pension Credit, to check if they are eligible for a 100 or 50 per cent discount on their Council Tax bill - worth up to £1,500 this year. This is provided by local authorities and needs to be claimed directly from them - it is not applied automatically - even if you're on benefits.
Martin's biggest check is on your Council Tax band, which an estimated 400,000 households north and south of the border are in the wrong one and could be due refunds worth thousands of pounds.
He explained how much Council Tax you pay depends on your local authority, which sets an overall amount each year and assigns a 'band' to your home, based on its value. It isn't banded by its current market value, but what it was worth on April 1, 1991 - the date Council Tax was introduced.
He added that the band valuation has not been done in Scotland and England since that date which is why many people may be in the wrong band.
Martin then explained two checks which may indicate that someone is in the wrong band - the neighbours check and the valuation check.
The neighbours check
This is where you have to compare your house to neighbours, in similar, or preferably identical properties, to see if you're in a higher band.
You don't have to ask your neighbours which Council tax band they're on, just go to the Scottish Assessors Authority (SAA) website here, where you can see yours and your neighbours' addresses.
If that check shows you're in too high a band, move to the next step, the 'valuation check'.
The valuation check
This is where you have to work out what your house was worth in 1991 because that's what decides the bands.
To do it, you've got to take a valuation of your house, or a similar house and then convert it back through a house calculator - there are free tools online that will do this for you.
There are eight Council Tax valuation bands in Scotland, from A to H. Band A is the lowest, while band H is the most expensive.
The valuation Council Tax band ranges can be found on the SAA website here.
Band A - Up to £27,000
Band B - Over £27,000 and up to £35,000
Band C - Over £35,000 and up to £45,000
Band D - Over £45,000 and up to £58,000
Band E - Over £58,000 and up to £80,000
Band F - Over £80,000 and up to £106,000
Band G - Over £106,000 and up to £212,000
Band H - Over £212,000
Martin stressed how the checking process before going ahead and challenging your local council is the most important bit. he also warned people not to begin the challenge process unless you pass both of these checks.
The full step-by-step guide on challenging your Council Tax band and more information on discounts and reductions available can be found on here.
Check if you could be exempt from paying Council Tax
You will not pay Council Tax if:
You are a full-time student
You are in the Armed Forces in Forces accommodation
You live in a care home or hospital
Your home is unoccupied and empty (up to six months) - for example, if you've gone into hospital
You have a severe mental impairment (e.g. dementia) - if you only live with someone who has dementia, then you'll be treated as a sole occupant as they will be disregarded, but you won't both be exempt
Contact your local authority about your eligibility and how you can apply for an exemption - a link to all 32 local authorities in Scotland is at the bottom of this page.
Could you be eligible for a discount on your Council Tax bill?
There are some circumstances where you may get a reduction on your Council Tax and the amount of discount varies depending on your circumstances.
If you live alone
The full Council Tax is calculated assuming there are two or more people living in each home – if you live alone, you should apply to your local council for a discount - you could get a 25 per cent reduction, regardless of your financial circumstances.
If you live with someone under 18 or a student
Council Tax is not calculated for anyone aged under 18, full-time students, student nurses and some apprentices or trainees.
If you are a carer
Carers who look after someone in the household for at least 35 hours per week and who meet additional criteria may be disregarded for Council Tax purposes, contact your local authority for their eligibility criteria.
Just be aware, this doesn't apply if the person receiving care is the partner of the carer, or is the carer's child aged under 18.
Apply for Council Tax Reduction
You may be eligible to claim a Council Tax Reduction if you're on a low income or claiming certain benefits.
You can also claim Council Tax support regardless of whether you own your own home or rent, or whether you're working or unemployed.
Each local council is responsible for operating their own Council Tax support scheme, so the amount of support given across the country may vary.
The amount you will get depends on many factors, including:
Which benefits you receive
Your age
Your income
Your savings
Who you live with
How much council tax you pay
You may get more Council Tax support if you receive a disability or carers benefit.
If you receive the Guarantee Credit Part of Pension Credit you may even get your Council Tax paid in full. If you don't have it, but are on a low income and have less than £16,000 in savings, you may still get some help.
Local councils
Contact your local council from the list below to apply for a Council Tax Reduction or discount.
Inverclyde
Renfrewshire
West Dunbartonshire
East Dunbartonshire
Glasgow
East Renfrewshire
North Lanarkshire
Falkirk
West Lothian
Edinburgh
Midlothian
East Lothian
Clackmannanshire
Fife
Dundee
Angus
Aberdeenshire
Aberdeen
Moray
Highland
Na h-Eileanan Siar
Argyll and Bute
Perth and Kinross
Stirling
North Ayrshire
East Ayrshire
South Ayrshire
Dumfries and Galloway
South Lanarkshire
Scottish Borders
Orkney
Shetland
