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Money saving expert Martin Lewis has revealed how thousands of people across the UK are paying too much city tax and explained how easy it is to verify and challenge your local advice.
On the latest episode of The Martin Lewis Money Show Live, the financial guru told viewers that there are about 400,000 households in the wrong council tax band.
In 2019, Martin and his team at MoneySavingExpert.com conducted an investigation into municipal taxes and found that there was at least £ 230 million in overpaid taxes in council coffers across Britain, and if you moved house Since 1993, you could have more than £ 100 in a closed account for your old address.
Martin also revealed how he first came up with the two city tax checks everyone should go through in 2007.
(Image: ITV / Mirror Online)
1. Neighbors check
Martin explained: “That’s where you have to compare your house with the neighbors, in similar properties, or preferably identical, to see if you are in a higher band.”
He added that you don’t have to ask your neighbors which Council tax band they’re in, just go to the Scottish Advisory Authority (SAA) website here, where you can see yours and your neighbors.
If that check shows you’re in too high a band, Martin told viewers to move on to the next step, the ‘valuation check’.
2. Valuation control
He said: “That sounds complex, since you have to find out the value of your house in 1991 because that is what decides the bands.
“To do this, you have to do an appraisal of your home, or a similar home, and then convert it back through a home calculator, but don’t worry, there are free tools online that will do it for you.
There are eight municipal tax valuation bands in Scotland, 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 SAA’s website here.
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Band A – Up to £ 27,000
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B and B – Over £ 27,000 and up to £ 35,000
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Band C – Over £ 35,000 and up to £ 45,000
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Band D – Over £ 45,000 and up to £ 58,000
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Band E. – Over £ 58,000 and up to £ 80,000
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Band F – Over £ 80,000 and up to £ 106,000
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G band – Over £ 106,000 and up to £ 212,000
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H band – Over £ 212,000
Martin emphasized that the next part of the verification process is the most important part.
“Only apply if both checks show you are in too high a band, if you only do the neighbor check and show you are in too high a band, it could actually mean your neighbor’s band is too low.
“You run and his band comes up and that won’t make you very popular.”
If you think you are paying too much, MomeySavingExpert.com has created a municipal tax challenge and verification system here.
If you are in too high a band, you can claim past overpayments and get future reductions from your local council.
(Image: PA)
If you have universal credit, benefits, or low income, you could get up to 100% off your bill
As a result of the coronavirus crisis, more people are eligible for a Council Tax Cut, also known as Council Tax support, because they claim the Universal Credit.
You can also claim municipal tax support regardless of whether you own your own home or rent, or are working or unemployed.
Each city council is responsible for operating its own municipal fiscal support plan, so the amounts of support awarded across the country may vary.
The amount you will receive depends on many factors, including:
You may receive more city tax support if you receive a disability or caregiver benefit.
Find out what your council has to offer here.
Do you live with someone with a “severe mental disability”?
“Tens of thousands of people with ‘severe mental disabilities’ who are entitled to a municipal tax discount could be losing around £ 400 a year,” said Martin.
By law, to qualify, someone must be medically certified as ‘severely mentally handicapped’ – defined as having “a severe impairment of intelligence and social functioning (whatever the cause) that appears to be permanent.”
This could include Alzheimer’s, Parkinson’s, strokes, and more, and means they may not be counted for city tax purposes if they live alone or receive a 25 percent discount if they live with another adult.
Some councils also date this, which could lead to refunds worth thousands of pounds.
Martin also spoke about this on his Money Show Live TV show a few weeks ago and has created a comprehensive guide on the subject that you can read here.
Do you live alone or with minors under 18 or caregivers? You can get a 25% discount and claim the previous years
If you live alone
The full municipal tax is calculated assuming that there are two or more people living in each household; if you live alone, you must apply for a discount at your local town hall. You could get a 25 percent reduction regardless of your financial circumstances.
If you live with someone under the age of 18 or a student
The city tax is not calculated for anyone under the age of 18, full-time students, nursing students, and some apprentices.
If you are a caregiver
Caregivers who care for someone in the home for at least 35 hours a week and who meet additional criteria may not be counted for municipal tax purposes; Contact your local authority for eligibility criteria.
Just keep in mind that this does not apply if the person receiving care is the caregiver’s partner or is the caregiver’s child under the age of 18.
Disabled or caring for someone who is? You could drop a band
You may be able to lower the band if a room in the house is dedicated to equipment that a disabled person uses on a daily basis.
With pension credit? You could get a reduction
If you receive the portion of the guarantee credit as part of the pension credit, you may even pay the city tax in full. If you don’t have it, but are low-income and have less than £ 16,000 in savings, you can still get some help, ask your local council.
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