Latest news with #LocalGovernmentFinanceAct1992
Daily Mirror
4 days ago
- Business
- Daily Mirror
Martin Lewis says thousands could be owed tax rebate going back decades
The money-saving expert says hundreds of thousands of people are potentially owed money Martin Lewis says hundreds of thousands of households in England and Scotland might be entitled to a back payment stretching back over three decades. The money-saving guru highlighted the issue with council tax bandings, which determine how much residents are charged. Council tax funds a variety of local services throughout England, Scotland, and Wales, such as waste collection, road maintenance, and street lighting, while Northern Ireland operates on a different rates system. The amount each household pays is influenced by three main factors: the valuation band of the property, the council's charge for that band, and any applicable exemptions. The current framework was established in 1993 under the Local Government Finance Act 1992, taking over from the unpopular Community Charge, commonly referred to as the poll tax. However, Mr Lewis has pointed out that this system is now severely outdated. Sharing his thoughts on Instagram, he said: "It really is quite unbelievable that if you live in England and Scotland, the council tax band you are in today is still dictated by a stop-gap, drive-by valuation done back in 1991 that was only meant to last a couple of years. "And when I say drive-by, I literally mean a couple of estate agents in a car often, with a clipboard in second gear going 'Band C, Band D, Band E..." reports Lancs Live. "That is still in place today, so it is no surprise that up to 400,000 homes are in the wrong band. And if you're in the wrong band and you challenge it, not only can you get it lowered, but you can get a backdated payout to when you moved or 1993 - whichever was sooner. "However, don't just do it speculatively because if you get it wrong, they could put your band up - or even your neighbour's band up. You need to follow my full step-by-step check and challenge process that I go through in detail in the podcast." How to check Mr Lewis detailed two straightforward checks to confirm whether you are paying the correct Council Tax band or not. The first test is a comparison with your neighbour's property. If their home is identical to yours but in a different band, chances are one of you might be incorrectly banded. Asking your neighbour is not necessary; instead, a quick visit to will unveil the banding details you require. Discrepancies between bands could indicate a problem. The second approach is a valuation check, which requires establishing the value of your property in 1991. This can be done easily enough online. Accessible on the valuation Council Tax band ranges further help in assessing whether your banding is accurate or amiss. A thorough guide on how to contest your Council Tax band, including details on potential discounts and reductions, is available on here. Mr Lewis emphasised the necessity of adhering to these steps prior to lodging an appeal, as a change in band could potentially result in higher, rather than lower, council tax for you.
Yahoo
18-02-2025
- Politics
- Yahoo
Councillor found to owe £4k in unpaid council tax
A councillor in Lancashire has been found to owe almost £4,000 in council tax, meaning he is now unable to vote on the authority's budget for this year as a result. Conservative Tim Ormerod who represents Vivary Bridge ward, owes £3,835 in total from the past three years, Pendle Borough Council confirmed. Liberal Democrat group leader David Whipp has called for his immediate resignation, adding: "This is a scandal." The BBC has contacted Mr Ormerod and the Conservatives for a comment. Mr Ormerod was elected to the seat in May 2023 and has attended two committee meetings and one full council meeting since December 2023. If a councillor fails to attend meetings for six months, unless this had been approved by the council, they automatically cease to be a councillor. Mr Whipp said: "This is a scandal. Councillor Ormerod has only attended two meetings in the past 14 months, the bare minimum to avoid disqualification for non-attendance. "Residents rightly want answers as to why this situation has been allowed for three years." The council's director of resources Karen Spencer said: "Section 106 of the Local Government Finance Act 1992 makes it an offence for a councillor in council tax arrears of at least two months to vote at a council meeting where financial matters relating to council tax are being considered." Listen to the best of BBC Radio Lancashire on BBC Sounds and follow BBC Lancashire on Facebook, X and Instagram and watch BBC North West Tonight on BBC iPlayer.
BBC News
18-02-2025
- Politics
- BBC News
Pendle councillor found to owe £4k in unpaid council tax
A councillor in Lancashire has been found to owe almost £4,000 in council tax, meaning he is now unable to vote on the authority's budget for this year as a Tim Ormerod who represents Vivary Bridge ward, owes £3,835 in total from the past three years, Pendle Borough Council Democrat group leader David Whipp has called for his immediate resignation, adding: "This is a scandal."The BBC has contacted Mr Ormerod and the Conservatives for a comment. Mr Ormerod was elected to the seat in May 2023 and has attended two committee meetings and one full council meeting since December 2023. 'Residents want answers' If a councillor fails to attend meetings for six months, unless this had been approved by the council, they automatically cease to be a Whipp said: "This is a scandal. Councillor Ormerod has only attended two meetings in the past 14 months, the bare minimum to avoid disqualification for non-attendance."Residents rightly want answers as to why this situation has been allowed for three years."The council's director of resources Karen Spencer said: "Section 106 of the Local Government Finance Act 1992 makes it an offence for a councillor in council tax arrears of at least two months to vote at a council meeting where financial matters relating to council tax are being considered." Listen to the best of BBC Radio Lancashire on BBC Sounds and follow BBC Lancashire on Facebook, X and Instagram and watch BBC North West Tonight on BBC iPlayer.
Yahoo
28-01-2025
- Business
- Yahoo
How to check if you're one of 400,000 homeowners overpaying council tax
Eight councils facing bankruptcy have asked for permission to raise council tax bills above the maximum limit allowed by law. If they are given the all-clear by central government, around 4.4 million residents could see their council tax bills rise, according to an audit by the Daily Mail, with households in the Royal Borough of Windsor and Maidenhead facing a hike of 25%. This would be the largest increase in two decades (five times the usual annual increase of 5%) and would see residents in the Berkshire borough paying an additional £451 per year on average. Bradford, North Somerset and Hampshire County Councils have all asked for 15% tax rises from April, while Birmingham City Council is requesting a 9.99% rise for a second year in a row. The London borough of Newham is asking for 10%, Cheshire East is asking for 9.99% and Slough is requesting a rise of 7.99%. Local authorities have long been asking for more financial support from the Westminster government, with councils in England facing a funding gap of £4bn over the next two years, according to the Local Government Association. Cash-strapped councils argue they have no choice but to ask for tax hikes above the normal limit, but according to many residents are already paying more than they should as thousands of homes were put in the wrong bands back in the early 90s. Could your home be one of them? Here, Yahoo News explains how to find out and what you can do about it. Council tax is a taxation system in England, Scotland and Wales and is a tax on domestic property. It was introduced in 1993 following the Local Government Finance Act 1992, and replaced the controversial Poll Tax, which itself replaced domestic rates. Council tax is charged on domestic properties, which are split into different bands, the cheapest being A and the most expensive being H. The bands are based on what the home might have sold for in April 1991: Band A - up to £40,000 Band B - £40,001 to £52,000 Band C - £52,001 to £68,000 Band D - £68,001 to £88,000 Band E - £88,001 to £120,000 Band F - £120,001 to £160,000 Band G - £160,001 to £320,000 Band H - more than £320,000 When you register to pay council tax, your local authority should let you know what band your home is in, but you can also check here on the government's website. According to MoneySavingExpert, as many as 400,000 homes are in the wrong council tax band due to being banded wrongly. When the banding system was introduced in 1991, there weren't enough resources to get detailed information on each individual property in time for the system's launch, the consumer champion website says. The government enlisted the help of estate agents and others, but still there wasn't enough time, prompting many estate agents to drive down whole streets banding properties "at a glance", in what came to be known as "second-gear valuations". MoneySavingExpert told Yahoo News that some people could also be overpaying council tax because they paid in advance and then moved away, or because they aren't claiming the discounts available to them, such as those for single people living alone. Benjamin Elks, grassroots development manager of the TaxPayers' Alliance, said: "Councils should ensure that they're being fair and thorough by collecting the correct amount of council tax." If someone believes their property is in a higher, incorrect band, they should assess their property's 1991 value. You can use this tool on the website to check your band, and crucially, to check if it is different to your neighbours living in similar or identical properties. If your neighbours are in a lower band than you, it could either mean the whole street needs to be rebanded, or that you need to challenge your own home's banding. MoneySavingExpert advises people to check what their homes were worth in 1991. If you bought your home after that time, you can take its price and date of sale and compare it with similar neighbouring properties on websites such as Zoopla, Rightmove and Nethouseprices, which show prices from 2000. Then you can find the most recent sale price of a similar property on your street. Once you have these details, you can use a calculator on MoneySavingExpert's site to find an estimate price for 1991. When using comparable properties to support your Council Tax band challenge, make sure to check that:✅ the properties are on the same street, estate or within the same village 🏘️Learn more about the other details we take into account: — Valuation Office Agency (@VOAgovuk) January 28, 2025 If you've been paying council tax on your property for less than six months, or your band has been changed in the past six months, then you can make a challenge known as a "proposal". This is classified as a formal challenge and means the government is required by law to carry out a review of your band. If you think your band is wrong and you've been paying council tax on your property for more than six months, you can request an "informal" band review. "The same legal rights do not apply, and we'll only take your request forward if you provide strong evidence that your band is wrong," the government says. "This is usually the addresses of up to five comparable properties or sales information." Residents can also challenge their council tax bands if there has been a change that affects their property, for example, if it has been split into multiple homes, or if it's been left in a state of disrepair with structural problems. People living in England and Wales can challenge their council tax bands here on the website. In Scotland, you have to submit your challenge to an assessor based in your local Valuation Joint Board or council, which you can find here, while in Northern Ireland, rates, the equivalent of council tax, you can apply for a domestic valuation review. How often should councils collect rubbish? Have your say (Yahoo News) Older people claiming Attendance Allowance can get back payments using Martin Lewis tip (Daily Record) How much is your council tax going up? London boroughs with biggest bills revealed (The London Standard)
