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 rebanding. 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
Other Extreme Council Tax Savings
- Live in an area where council tax rates are low.
- Live where council services are run on the basis of good value for tax payers money or where the government subsidy is high.
- ‘If you’re on a low income, whether you’re working or not, and need financial help to pay your Council Tax bill, you may be able to get Council Tax Benefit. Find out more, including who is eligible and information about the Second Adult Rebate’ from Directgov
- Beware of the potential ‘mansion tax’ beloved of the Libdems but also keep an evil eye on Eric Pickles
Read rhetoric or reality on Council Tax
Join the campaign to have council tax reformed. It will cost you nothing and – if we succeed – could save you £100s.
http://www.isitfair.co.uk
The council tax is on the way out in Scotland, so it’s only a matter of time before in happens in England and Wales too.
I watched your video, I’m in Australia and we have a housing shortage too. I’m 26, I won’t be able to get a mortgage until I am 30/31 I predict. I wondered, why is that you are eager to get out teaching high school? I read this on your cycling blog… which I will now go back to, as I wish to ask you a cycling question. See you there!