The simple question to ask your neighbour that can slash your council tax by £1,000s
THOUSANDS of households could cut their council tax bill by simply asking their neighbour a straightforward question.
The savings, often amounting to thousands of pounds, result from successfully challenging your council tax band.
Government figures reveal that in the last financial year, over 27% of households who attempted to change their band succeeded.
However, before considering this, it’s wise to question your neighbour.
Martyn James, consumer rights expert, says: “Getting on with your neighbours is not only good for your lifestyle, it can save you a fortune.
“If you live in a similar sized property, have a casual chat with next door about what council tax band they are on.
“If you’ve been put on the wrong band, then not only could you reduce the bill, you could claim for overpayments going back decades”
“But make sure you check the bands online too – you don’t want to be responsible for your street paying more.”
Properties across the UK are put into a band from A to H (A to I in Wales), and this informs how much council tax you pay.
Your home’s band is based on its rateable value – the more expensive the property, the higher the council tax band.
However, the bands were created based on property values back in 1991 (2003 in Wales), so many households may find that based on today’s prices, they should be in a different band.
In this instance, you can challenge your council tax band – it could mean you are moved to a lower band and, therefore, pay less.
You’ll also get a refund of council tax going back to the date you moved into the property.
But a word of warning to anyone considering this – there is also a risk that you could get moved up a band and have to pay more.
According to the latest figures, a total of 30 challenges resulted in a tax band increase.
Depending on which band you are in, getting a reduction could potentially save you thousands.
However, the exact amount of money you can save moving council tax brackets varies depending on where you live.
Martina Brannigan, 26, couldn’t believe how “quick and easy” it was to challenge her Council Tax band.
She went from band E to band D, which lowered her council tax bill from £197 a month to £162 a month.
She was also told she would get a refund for the three months she had overpaid since she moved in.
Plus, instead of taking this as a lump sum payment, she decided to have this taken off her future payments, reducing them to £137 a month for the remaining tax year.
Elsewhere, mum-of-one Melanie Garraway previously managed to save hundreds of pounds on her council tax bill by challenging her band.
CHALLENGE YOUR COUNCIL TAX BAND
If you think your home is in the wrong council tax band, then you’ll need to place a formal challenge.
Contact the Valuation Office Agency (VOA) in England and Wales or the Scottish Assessors Association (SAA) in Scotland to do this.
Gather evidence showing you’re paying more – this could be having addresses of similar properties to yours in a lower band, for example.
If the VOA agrees that your property is in the wrong band, it will contact you to let you know your band will be changed.
It can take up to two months for the VOA to review your case.
But be warned – challenging your band might not work.
While you could get moved to a lower band and pay less, there’s also the chance the VOA could find you’re not paying enough.
This could mean you’re moved to a higher band – and your neighbours’ too.
If you disagree with the VOA’s ruling, you can appeal your case – but only if you’ve been told that you can when you get the decision.
You must appeal within three months of your decision – to do this, contact the Valuation Tribunal Service.
If the Valuation Tribunal agrees with you, it will get the VOA to change your band – and your bill will change.
CHECK FOR COUNCIL TAX DISCOUNTS
IF you're struggling with your council tax costs, it's worth checking out whether you're entitled to reduce your tax bill, which can save you thousands of pounds.
Some people can even get their bills slashed by 100%, meaning they wouldn’t pay anything at all.
Here are all the other discounts available.
If you’re a pensioner
If you don’t receive the guaranteed credit part of pension credit, you could still get a council tax discount if you have a low income and less than £16,000 in savings.
If you live alone, you will get the 25% reduction, even if you’re not entitled to any benefits.
If you’re a disabled
People with certain disabilities can get a discount of up to 100%. This applies to anyone considered severely mentally impaired (SMI), which includes conditions such as dementia, Parkinson’s or learning difficulties resulting from a stroke.
If you’re living with someone affected with an SMI, you could qualify for a discount, too.
To be considered, a GP needs to certify the SMI, and typically, they will need to receive at least one type of benefit, such as attendance allowance or personal independence payments (PIP).
Again, you can check your eligibility or that of a family member and apply on your local council’s website.
If you live alone
If you’re the only adult in your home, you can get a 25% discount on your council tax bill.
This includes if you’re a single parent with children under 18 in the house.
Usually, you’ll need to let your local council know to get the reduction.
Even if other adults are in your home, you might still get the 25% reduction, as some groups of people are “disregarded” for council tax purposes.
If you’re a student
Households where everyone is a full-time student do not have to pay any council tax.
To qualify as a full-time student, your course must:
- Last at least one year
- Involve at least 21 hours study per week
If you’re between 18 and 20 and doing A Levels or equivalent, your course must last at least three months and involve at least 12 hours of study a week.
If there is an adult who is not a student in your household, they will need to pay council tax, but should still qualify for a discount if everyone else is a student.