Council Tax on the rise: How to check if you’re overpaying

In just a few days’ time, many UK households will see their council tax bills rise by 2.99%, adding pressure to the current cost of living crisis.

Whether you’re in one of the 80+ councils set to hike their prices or not, it’s essential you check now to make sure you’re in the right tax band.

Each year, thousands of families are overcharged by as much as 20%, so follow the below steps now to make sure you’re not paying over the odds and to see if you’re due a repayment.

James Andrews, Senior Personal Finance editor at money.co.uk said: “Council tax bands were first introduced in the early 90s, and due to the speed at which they were rolled out, potentially hundreds of thousands of properties could have been misattributed.

“This, along with the mass of new homes that have been built since, means thousands of people are re-banded each year, there’s potentially thousands of Brits in the wrong tax band.

“The most recent figures show 40,000 people challenged their council tax band in 2020/2021, and almost one in three of them (30.7%) saw their band reduced as a result.

“That means it doesn’t matter if your council tax bill is set to increase next month or not, it’s a good idea to check your tax band on the government website now to make sure you’re not being overcharged.

“If you think your band is wrong, then you can make an appeal, but be careful to do your research first, as in a few cases each year updating your tax band could see your payments rise as well as fall.

“And there’s an extra incentive this year as well, with homes banded A-D getting £150 off their bill to help with energy costs, meaning extra savings for people rated E and above if they are re-banded down to that level.

“It’s also essential to check if you are entitled to a discount on your council tax, as this could save you a substantial amount over the course of the year. For example, if you’re the only adult at the address or are currently receiving benefits or on Universal Credit, then you may be entitled to up to 25% off your council tax.

“If you, or someone you live with is a carer, or has a health condition or disability, then you may also be able to claim a discount. People diagnosed with a serious mental health condition are also entitled to a discount. Most students can claim exemption from paying council tax, meaning they won’t have to pay a thing, however this isn’t done automatically – students need to visit the government website to check their eligibility for a discount.

“Discounts and exemptions are backdated, so if you’ve overpaid then you could be able to claim the money back. The same goes for a refund for being in the wrong tax band, meaning you could in theory backdate payments to the 1990s, a serious sum in most cases.