Households could get £1000 back on council tax bills, here's how to claim it

Money Saving Expert, Martin Lewis has revealed that households could claim back as much as £1,000 on their council tax bills.The consumer rights champion explained how many people could be overpaying council tax and may have been for some time.

It is thought that many people could challenge their council tax band and get refunded on paymentssince the day they moved in. It could be particularly good news for some as it comes at a time when councils are increasing the tax across most parts of England.

Council tax increase

Lewis explained on BBC Radio 5 Live, step-by-step advice on how to challenge a council tax band, potentially saving people thousands of pounds just as they need it most. Council taxes are set to rise in most parts of England in April by the limit of 5 per cent and Lewis has encouraged people to check whether they are in the wrong band.

Previously, local authorities were only allowed to raise their council tax by 2.99 per cent without it going to a local vote. However, it was recently reported that some authorities had been found to increase their bills by more than this - in some cases, by as much as 15 per cent, as per The Sun.

Council tax bands are based on the value that the properties would have sold for on the open market on 1 April 1991 in England and 1 April 2003 in Wales. Consequently, the more expensive a property's value is, the more the house’s council tax bill will be.

If a person's council tax band is incorrect, then not only will they be paying less moving forward, but they will also be able to claim a refund on any overpayments made since first moving into the property. Of course, this works both ways so be very careful when checking in case you are underpaying currently!

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⋙ Thousands can receive up to £4,500 with this housing scheme, check if you are eligible

⋙ Millions could risk losing up to £7,500 if they do not check this simple detail before April 5

How can people challenge their council tax band?

Lewis explained on the radio show, as per The Daily Mail:

So, step number one. You need to compare the band you're in with nearby similar or preferably identical homes.

Those living in England and Wales can research and submit their challenge to the Valuation Office Agency (VOA) through the government's website. Alternatively, people can call the VOA on 03000 501 501 for England or 03000 505 505 for Wales or email ctinbox@voa.gov.uk.

The process includes giving addresses of up to five similar properties in a lower council tax band in your immediate area and detailing what type of property you live in, its size, age and style and design.

Lewis went on to explain:

If you find that properties that are very similar to yours - and remember, they might have done an extension - are in a lower band, then you have the first tick in the box. But I would do absolutely nothing unless you get the second tick in the two-step check. The second tick comes from what I call the "valuation check".

Now I should note that this cannot be used as evidence when you go and challenge your band but this is so you can be pretty sure you have a good case. If people find that they are in too high of a band, then they should get in touch with their local council office.

Lewis also writes on his website that some other discounts are possible on your council tax bill and you should apply online if you think you’re eligible by visiting Gov.uk to find your council's details, as per Money Saving Expert.

Read more:

⋙ Millions to be affected by these major tax changes coming in April

Sources used:

- The Sun 'TAXING TIMES What council tax band am I in?'

- The Daily Mail 'Martin Lewis reveals how households can get £1,000 back on their council tax'

- Money Saving Expert 'Council tax discounts. Many are entitled to discounts that can help save £1,000s'