Top News

People are encouraged to scrutinise their council tax bills, as numerous households could be entitled to substantial refunds. The alert comes as council tax charges across the country are set to rise on April 1, with most local authorities increasing rates by 5%.

Money-saving expert Martin Lewis has previously highlighted on his Money Saving Expert (MSE) website that potentially hundreds of thousands of homes throughout England and Scotland may have been incorrectly categorised in the council tax banding system. He cautioned that these mistakes could have remained undetected for years, with refunds amounting to thousands of pounds becoming "commonplace".

Council tax is a fee imposed by local authorities to fund essential public services such as bin collections, road maintenance and libraries. A portion of the funds also contributes towards local police forces and fire brigades, meaning what you pay depends on both your location and property type, with homes sorted into different bands.

However, this is where complications emerge. In guidance featured on MSE, Martin explained how properties across England and Scotland might be incorrectly categorised, leading to inaccurate council tax bills. He stated: "Hundreds of thousands of homes across England and Scotland are thought to be in the wrong council tax band.

This means it's important to check your property's in the right band - something our tried-and-tested system can help you do. 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."

He revealed that "many" properties have been stuck in incorrect council tax bands since 1991. When the new council tax system was introduced that year, limited resources meant numerous homes were valued with "just a glance", with assessors merely driving by.

Homeowners in Wales have been more fortunate, as the Government carried out a full revaluation of all properties, ensuring residents now pay the correct amount. But, England and Scotland haven't benefited from the same treatment.

"So the flawed old valuation still dictates much of England and Scotland's banding, which is why you could be paying more than your neighbour even though you live in exactly the same size property," Martin observed.

There are several methods to verify if you're being charged excessive council tax. You can:

• Compare your band with neighbours' in similar or identical properties - either by asking them directly or checking the GOV.UK website
• Calculate your property's 1991 value - the simplest method is to use websites such as Nethouseprices, Zoopla and Rightmove. What to do if you believe you're in the wrong band

If you reside in England or Wales and believe your property has been assigned to the incorrect band, Martin recommended that you should challenge it. Initially, you'll need to determine whether you can do this "formally" or "informally".

To submit a formal challenge, you must have lived at the property for no longer than six months (whether you're a homeowner or tenant doesn't matter, though tenants should notify their landlord as a courtesy). The Money Saving Expert website explained: "If you're able to challenge formally (also known as a 'proposal'), the Valuation Office Agency (VOA) must review your band. Although you don't have to officially provide evidence about nearby properties, we'd strongly suggest you don't skip that part."

If you've been living there for more than six months, the VOA has a legal obligation to maintain the accuracy of the Council Tax bands register. MSE explained: "This means you can still submit a request for an 'informal review' of your Council Tax band (use our template wording can help), though the burden is on you to provide compelling evidence that your band is wrong, to persuade the VOA to do the review (the following steps show what evidence to prepare)."

In Scotland, council tax bands are managed by the Scottish Assessors' Association (SAA). Simply enter your postcode into the Council Tax Bands search facility on the SAA website.

MSE explained: "In Scotland, the Scottish Assessors Association (SAA) deals with Council Tax band challenges, known as 'proposals'. As we mentioned above, in Scotland there isn't an informal route to challenge your band if you can't challenge formally. That means you should always go through the formal system of challenging, known as making a proposal."

Additional information can be found on the Money Saving Expert website here.