Some households across Scotland have started to receive their new Council Tax bills for the 2023/24 financial year. The amount you pay will increase in April, however, Martin Lewis is urging people to check they are on the correct band as there are around 400,000 households in Scotland and England on the wrong one and paying too much money to their local council.
On the latest edition of the BBC Radio 5 Live Martin Lewis Podcast, the consumer champion explained how the band evaluation process was carried out in 1991 and implemented in 1993 - but is still the valuation being used some 30 years later which “most homes in England and Scotland are based on”. He told listeners that Wales has done a re-banding of Council Tax bands but “governments avoid it” because it is “really political”.
Martin said: “It’s estimated up to 400,000 homes are in the wrong band.”
He explained that some of those 400,000 homes will be in too low a band, while others are in too high a band which means you may be able to get it lowered and a backdated payout.
Martin also shared success stories from people who watched his very first TV special on the topic in 2008. Pam watched the show, looked into her band and received a backdated payment for nearly £2,000.
Frances called in to share how she did the checks a couple of years ago and got her band lowered - she received a back payment of £3,500.
Martin said: “If you find you’re in the wrong band, you can get a backdated payout going back to the time you moved into the property or 1993, whichever is sooner and you can get your Council Tax band lowered.”
He then shared his two-step system which he came up with in 2007 which has seen “tens if not hundreds of thousands of people succeed on it”.
Below is everything you need to know about the two-step Martin Lewis Council Tax Check and Challenge.
Council Tax band check
1. The neighbours check
This is where you have to compare your house to neighbours, in similar, or preferably identical properties, to see if you’re in a higher band.
You don’t have to ask your neighbours which Council Tax band they’re on, just go to the Scottish Assessors Authority (SAA) website here, where you can see yours and your neighbours' addresses.
If that check shows you’re in too high a band, move to the next step - the ‘valuation check’.
2. The valuation check
This is where you have to work out what your house was worth in 1991 because that’s what decides the bands.
To do it, you’ve got to take a valuation of your house, or a similar house and then convert it back through a house calculator - there are free tools online that will do this for you.
There are eight Council Tax valuation bands in Scotland, from 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 the SAA website here.
Band A - Up to £27,000
Band B - Over £27,000 and up to £35,000
Band C - Over £35,000 and up to £45,000
Band D - Over £45,000 and up to £58,000
Band E - Over £58,000 and up to £80,000
Band F - Over £80,000 and up to £106,000
Band G - Over £106,000 and up to £212,000
Band H - Over £212,000
Martin stressed how the next part of the checking process is the most important bit.
He warned that people should only challenge their Council Tax band if both checks show you are in too high a band, if you only do the neighbours check and it shows you’re in too high a band it might actually mean your neighbour’s band is too low.
Which means if you apply, their band could go up and that will not make you very popular.
If you think you are paying too much, Martin has posted a full guide to doing the check on MomeySavingExpert.com here.
If you're in too high a band, you can reclaim past over-payments and get reductions in future from your local council.
Could you be exempt from paying Council Tax?
You will not pay Council Tax if:
You are a full-time student
You are in the Armed Forces in Forces accommodation
You live in a care home or hospital
Your home is unoccupied and empty (up to six months) - for example, if you’ve gone into hospital
You have a severe mental impairment (e.g. dementia) - if you only live with someone who has dementia, then you’ll be treated as a sole occupant as they will be disregarded, but you won’t both be exempt
Contact your local authority about your eligibility and how you can apply for an exemption.
Could you be eligible for a discount on your Council Tax bill?
There are some circumstances where you may get a reduction on your Council Tax and the amount of discount varies depending on your circumstances.
If you live alone
The full Council Tax is calculated assuming there are two or more people living in each home – if you live alone, you should apply to your local council for a discount - you could get a 25 per cent reduction, regardless of your financial circumstances.
If you live with someone under 18 or a student
Council Tax is not calculated for anyone aged under 18, full-time students, student nurses and some apprentices or trainees.
If you are a carer
Carers who look after someone in the household for at least 35 hours per week and who meet additional criteria may be disregarded for Council Tax purposes, contact your local authority for their eligibility criteria.
Just be aware, this doesn’t apply if the person receiving care is the partner of the carer, or is the carer’s child aged under 18.
If there are major changes to the value of your home
You may be able to get your home moved to a lower band if it has decreased in value.
For example, if you have made home adaptations for a disabled person, or if a motorway has been built nearby.
You may also get the band lowered if a room in the house is dedicated to equipment used by a disabled person on a daily basis.
If you change the way you pay
Although the total year’s amount will stay the same, you can request that your bill be split over 12 months instead of 10, so that you can spread the cost and reduce your monthly outgoings.
Alternatively, if you can afford to pay the whole bill in one lump sum, check with your local council if you can get a discount.
Apply for Council Tax support
You may be eligible to claim Council Tax support, sometimes called Council Tax Reduction, if you’re on a low income or claiming certain benefits.
You can also claim Council Tax support regardless of whether you own your own home or rent, or whether you’re working or unemployed.
Each local council is responsible for operating their own Council Tax support scheme, so the amount of support given across the country may vary.
The amount you will get depends on many factors, including:
Which benefits you receive
Your age
Your income
Your savings
Who you live with
How much council tax you pay
You may get more Council Tax support if you receive a disability or carers benefit.
If you receive the Guarantee Credit Part of Pension Credit you may even get your council tax paid in full. If you don’t have it, but are on a low income and have less than £16,000 in savings, you may still get some help.
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