Martin Lewis is encouraging households to carry out a simple 10-minute check that could result in refunds worth thousands of pounds. The presenter’s team at MoneySavingExpert (MSE) said: “Hundreds of thousands of homes across England and Scotland are thought to be in the wrong Council Tax band.”
The guidance explained: “Some homeowners and renters have unknowingly been overpaying Council Tax for many years, even decades, because their bands are too high, so payouts worth £1,000s are commonplace.” As such, English and Scottish households are being urged to check whether their band could be lowered, potentially securing a backdated payout and cheaper bills in the future.
Posting on Instagram, MSE said 100,000s of households could be entitled to a payout. The team said: “Council Tax is going up again in April – many will rise by 4.99%, and some even above that.
“But 100,000s of households in Scotland and England could lower their bands and get £1,000s back. This is because Council Tax bands here are STILL based on flawed drive-by property valuations done way back in 1991!”
The post also highlighted a success story from an MSE forum user who thanked Martin Lewis for helping them save thousands, reports the Mirror. They said: “Fourteen months later, I have been told my tax band is going down and I have £6,572 on the way.”
The Instagram post directed people to MoneySavingExpert.com, telling them to follow Martin Lewis’ ’10-minute Check and Challenge guide.’ As the website explains, it’s advised to complete two checks before asking for your band to be revalued, in case the band could go up rather than down.
MSE says to compare your band to that of any neighbours with a property that’s a similar size and value. You can do this using Gov.uk in England or the Scottish Assessors Association in Scotland.
If your neighbours have similar properties in a lower band, you may have a claim, though MSE points out that it could mean everyone is in the wrong band. The second step is to complete a valuation check to determine your property’s value in 1991 and whether you should be in a lower band. The MSE website offers a free home valuation calculator, so people can work out their home’s value in 1991.
Then complete a valuation check to determine what your property was worth in 1991 and whether you should be in a lower band. The MSE website offers a free home valuation calculator, so people can work out their home’s value in 1991.
According to the guidance, you should only submit a challenge if your property passes both of these checks. How you submit a challenge generally depends on how long you have lived in the property and where you live. The method could vary depending of if you’re in England or Scotland.
Nonetheless, it could still be worth completing the check. MoneySavingExpert says if you are successful in getting your band lowered, you can expect to pay around £100-£400 less in Council Tax every year. You should also get a refund for all the years you have been overpaying.