COUNCIL TAX - SAVING TIPS WE ALL NEED TO KNOW:

FIRST PUBLISHED BY: THE GUARDIAN

SAVING TIPS WE ALL NEED TO KNOW

Challenge your bill:

Don't be afraid to query your Council Tax bill. In 1991 properties were given "drive-by" valuations to assess which band they should be in: many ended up in the wrong band as a result, with home-owners paying hundreds of pounds more than necessary. 

But the internet means it's now possible to have a professional check done and challenge your band - this is worth doing as any repayment will be backdated.

To check what band your home is in, go to CT REBATE UK Limited. They will have to compare your house with similar houses in the neighbourhood. If there looks to be a discrepancy (ie. you're in a higher band than neighbours in a similar property) you may have a case, which they will pursue for you.

Those in areas of mixed housing are most likely to have been assessed wrongly. Those on estates where all properties were built at the same time are less likely to find a discrepancy.

If your property is found to have been placed in the wrong band, you could be due a rebate for all the extra tax you have paid over the years - from the date you moved into the property or even back to 1993, when the system began.

Get a student in:

Households comprised entirely of students don't have to pay Council Tax at all, and if you have one student in your household you get 25% off.

Pay on time:

Council Tax is billed annually by your local authority. Most give you the choice of paying the whole bill upfront, in two half-yearly instalments or monthly either in person, at the bank, over the phone, on-line or by direct debit. But if you miss two monthly payments, you could lose your right to pay in instalments and will be sent a demand for the whole lot.

Find out if you are entitled to any exemptions:

Some properties are exempt from Council Tax, or qualify for a discount on their bill. For example, empty unfurnished properties can be exempt for up to six months, while properties that are uninhabitable or being renovated are exempt for up to a year.

Furnished second- or holiday- homes in England and Scotland will be liable for Council Tax, but will have a discount of between 10% and 50% because no one lives there on a permanent basis. Other properties that could be exempt from paying some or all of the Council Tax include homes that are unoccupied because the normal resident has had to go into care. 

Claim Council Tax benefit if you can:

If you earn less than £16,000 you may be eligible for Council Tax benefit: some people on low incomes can get a reduction of up to 100%. You can check if this applies to you by contacting your local council, but as a rule of thumb, if you're entitled to Income Support, income-based Jobseeker's Allowance or the guarantee credit of Pension Credit, you're likely to be eligible for help with your Council Tax.

Or a second adult rebate:

Council Tax is based on the assumption that two adults live in each property, so you might be eligible for a second adult rebate if your partner or person you live with is on a low income, is on Income Support or is claiming JobSeeker's Allowance. Other people who may be able to get money off their bill include disabled people, carers and the mentally ill.

How your bill is worked out:

Council Tax is billed per property and how much you pay depends on the band your property is in. Properties were last assessed for bands in 1991, with those worth under £40,000 at that time placed in band A and those worth over £320,000 in band H. The 1991 valuation is still used to determine a property's band.

Properties in band A have the smallest Council Tax bills (normally around £1,000 a year), while those in band H pay the most (anything up to about £3,000 a year). Your bill depends not only on which band your property falls into, but also on your council - each sets its own rates according to political as well as financial concerns.

Occupiers not owners are billed, so tenants rather than landlords pay in a rented property. Single occupiers get a 25% discount.

READ WHAT: ERIC PICKLES ‘SECRETARY OF STATE’ SAYS ABOUT OVER-CHARGED COUNCIL TAX.

ARE YOU PAYING TOO MUCH COUNCIL TAX- CHECK HERE?