Saving Money on Council Tax

When the Government introduced the Council tax in 1991, they rushed to get houses valued. They outsourced the job to estate agents and other people. Usually, they would make valuations just be having a quick look at the outside of the house and making a best guess about what value it was in.

Since 1991, there has been no rebranding. The effect is that many houses are incorrectly banded leading to a significant number of people paying too much council tax.

The easiest way to check is ask local neighbours what band they are in. If they are in a lower band you have a very good chance of not just getting a lower council tax bill, but getting a backdated rebate. A friend of mine recently was successful in getting a lower council tax band. He described it in more detail here - A Council Tax Reband could save you thousands

Other tips for Saving Money on Council Tax

• Students Don’t Pay council Tax
• If you live alone, you are entitled to get a 25% discount. Make sure you tell the council though.
• If there is one adult and several students, you are entitled to the 25% discount.
• Renovation. If the house is empty for renovation, you can claim an exemption for upto 12 months.

On a personal note, I really dislike the council tax, it is very regressive and takes a high % of my meagre teaching income. I would like to see a local income tax which would be fairer. The thing with the council tax is that it was rushed through because everyone despised the poll tax. But, the solution given was not the best.

Also see: Council Tax at Guardian