More than £141 million is owed to 808,000 households across England, Scotland and Wales who have overpaid their council tax, according to research by MoneySavingExpert (MSE). The consumer website gathered information from 349 local authority areas under Freedom of Information laws.
Some households could be due £100 or more, especially if they have moved home and left money sitting in an old council tax account. Council tax is a charge levied by local councils to finance services such as waste collection, highway maintenance, and libraries, with a proportion also funding local police and fire and rescue services.
Why households overpay
Council tax is usually paid in advance, so people can end up paying for days they no longer live at a property. If an account is closed before the overpayment is refunded, the money may remain unclaimed. Other reasons for being owed money include payments continuing after a move, or a successful challenge that results in a property's council tax band being lowered.
The government advises anyone who has paid too much council tax and has not received an automatic refund to contact their local council.
How to check if you're owed money
Start by checking any final council tax bill from a previous address. You can also check your online account with your former council to see whether it shows a credit balance. If you cannot find the information, search online for your former council's name followed by "council tax refund". Many local authorities have dedicated forms for people who believe they have overpaid.
You can find your council's contact details through the government's official council finder. You will usually need your council tax account reference, which can be found on an old bill, along with details of the property concerned. Some councils may ask for bank details to arrange a payment.
Council policies on refunds
For example, Cornwall Council says residents can request a refund if their account is in credit because they have overpaid, moved away or received a discount. However, the council checks whether money is owed on other accounts before issuing a refund. This means a credit may not always be paid straight into your bank account, as some councils can use it to reduce other outstanding council tax debts.
You could also be owed money after a council tax band change. A successful council tax band challenge could mean a household has paid too much in previous years. The government has an online council tax band checker for properties in England and Wales, while in Scotland residents can check their property's band through the Scottish Assessors Association.
MSE has highlighted cases in which people reclaimed hundreds of pounds after discovering an old account was in credit. One London resident reclaimed £103 after moving away from Tower Hamlets, while another former MSE employee received £400 after a new tenant successfully challenged the council tax band of his former flat. For more information on how to check and claim, you can read MoneySavingExpert's full guide to reclaiming overpaid council tax.
