November 13th 2024.
Did you know that you might be entitled to a council tax refund? In his latest Money Saving Expert newsletter, Martin Lewis shared some helpful tips about council tax, and one of them could potentially lead to a windfall of money that you didn't even know existed. According to an investigation conducted earlier this year, there are 808,000 households in the UK that are owed a council tax refund, totaling to a whopping £141 million that is waiting to be claimed from local authorities.
While it is the responsibility of the councils to reimburse overpayments, if you have moved and they are unable to contact you, then it is up to you to claim the refund. Martin explains that you are most likely eligible for a refund if you have moved out of a council area since 1993 and were not paying by Direct Debit. This is because local authorities can use your Direct Debit details to pay you even if they do not have your new address. Otherwise, the money will just sit there until you ask for it.
Checking if you have overpaid is a simple process. If you are wondering if you are owed a refund, here are some common reasons why that might be the case:
- You paid in advance and moved out before the year ended.
- You forgot to cancel a payment after moving out.
- You are due a retrospective discount.
- You have moved within local authorities and/or paid by direct debit.
According to the MSE website, if you lived in a home where there were multiple bill-payers, it might be harder for the council to determine who should be refunded. The best way to find out if you are owed a refund is to do a quick search on Google for your local council's refund form. You will likely need your old Council Tax reference number, which can be found on your bills. It's a simple process with no additional steps required.
In case your local authority does not have an online form, the search should still lead you to a page explaining how to reclaim council tax overpayments through email or phone. However, MSE advises people to check if they fit the criteria mentioned above before contacting their council. They do not want everyone to call their council and waste their time or overload their switchboards, especially during these times when many people need to reach out to their council for essential support.
Additionally, Martin also shares some other tips to potentially reduce your council tax bill. One of them is to check your tax band, as there are around 400,000 homes that are believed to be wrongly classified. You can either ask your neighbors for their band or search for your postcode on Gov.uk (in England) or the SAA website (in Scotland) to see if your band is significantly different from theirs. Council tax bands are determined based on a property's value in 1991, so if you passed the first check, you can use the MSE calculator to estimate your property's value in 1991 and compare it to the chart on their website. If you believe that your property is in the wrong band, you can challenge it with the council.
Moreover, Martin also mentions some council tax discounts that you might be eligible for. These discounts can lead to a reduction in your bill or a refund for overpayments. Some of the main discounts include single adult households, full-time student households, and homes with a live-in carer. You might also qualify for a reduction if you or someone in your household has a severe mental impairment, is receiving means-tested benefits, or if your property has been adapted for someone with a disability. Martin encourages people not to feel guilty about claiming these discounts when they are legitimately due, as it is money that you have paid but should not have. Do you have a story to share? You can get in touch with Martin by emailing him.
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