FIVE WAYS TO SAVE ON … COUNCIL TAX

First Published by: The Guardian

1. Challenge your bill

Your valuation band determines how much you pay. In England and Scotland these bands are based on the property's value in April 1991. Some of the calculations were inaccurate, leading to thousands of homes being placed in the wrong bands and their owners paying too much Council Tax. 

Query your banding by contacting Rebates UK Claims and Services Limited, complete their on-line application for a quick response.

If you think there's a discrepancy – perhaps you're in a higher band than neighbours in a similar property – you may have a case to challenge. If your property is found to be in the wrong band, you could be due a rebate for the extra Council Tax you have paid over the years.

If you disagree with the decision, you can appeal, within three months, to the valuation tribunal service.

2. Claim council tax benefit

If you're on a low income (below £16,000) or you live with another adult (not your partner) who's on a low income, you may be able to claim council tax benefit or second adult rebate. People­ on low incomes can get a reduction or even be exempt from the bill.

As a rule of thumb, if you're entitled to income support, income-based jobseeker's allowance or guarantee pension credit, you're likely to get help with your council tax.

You might also be eligible for a second adult rebate, which can reduce your council tax bill by up to 25%, if the other adult you live with is on a low income, on income support or claiming jobseeker's allowance.

A booklet explaining council tax benefit is available from post offices, Jobcentre Plus and social security offices. Other people who may be able to get money off their bill include the disabled, carers and the mentally ill.

3. Live alone

If you live by yourself in a property as your main home, you're entitled to a single person's discount of 25%. Claim this from your local authority if you don't receive it automatically on your council tax bill.

If you get this reduction by living alone, you won't lose it if someone under the age of 18 (or 19 if still in full-time education) comes to live with you, such as a grandchild. Nor will you lose it if certain categories of adults move in, including students and student nurses.

4. Pay up on time

Council tax is billed annually in March or April by your local authority and most ask you to pay in 10 monthly instalments. If you think the bill is wrong, tell your council immediately, but don't stop paying the amounts set out on your original bill until the council agrees and sends you a revised one.

If you have a problem paying your bill, contact your council and ask if it can help, perhaps by rescheduling payments. However you mustn't ignore the bill completely. If you miss payments and fail to agree, in writing, any alternative arrangement with your council, it may take legal recovery action which could increase considerably the amount you have to pay.

5. Find out if you're entitled to any exemptions

Some properties are exempt or qualify for a discount. These include empty, unfurnished properties, which can be exempt for up to six months, while unoccupied dwellings undergoing major repairs to make them habitable are council tax-free for up to a year.

Also exempt are properties left unoccupied because the person who lived there has moved to receive personal care – whether to a hospital, care home, relatives or elsewhere – and properties left unoccupied by someone who has moved to care for another person.

Furnished second or holiday homes are liable, but councils are obliged to offer a discount on second homes of between 10% and 50% because no one lives there on a permanent basis.

In some special cases the owner, not the resident, has to pay the council tax for a property. Become a monk or nun, for example, living in a religious community with no personal income or capital, and you won't have to pay the tax.

Are you paying too much Council Tax?