Financial guru Martin Lewis has revealed how a simple check could put thousands of pounds back in your pocket, after a viewer successfully claimed a council tax refund of almost £6,000.
The Two-Step Check to Challenge Your Band
Appearing on his ITV show, The Martin Lewis Money Show Live, the founder of MoneySavingExpert.com outlined a crucial process for homeowners in England and Scotland. He stressed that an estimated 400,000 properties are currently in the incorrect council tax band, meaning many are overpaying.
Martin Lewis detailed two essential checks you must complete before considering a challenge. The first is a neighbour comparison. You should compare your council tax band with those of neighbours in similar or identical properties. This information is publicly available online via GOV.UK for England and Wales, or SAA.GOV.UK for Scotland, so there's no need for awkward conversations.
"If your house is in a higher band than people in identical homes, you may be in too high of a band," he explained. "Equally, they may be in too low a band, which is what the second check helps you realise."
The Crucial 1991 Valuation Check
The second check involves your property's 1991 value, as this is the date upon which all current council tax bands are based. While this sounds complex, free online tools can automate the calculation. MoneySavingExpert.com provides both a calculator for your 1991 value and a table showing which band that value corresponds to.
Lewis issued a strong warning: "Only consider challenging if you pass both of the checks, because otherwise, you could ask, they could put your neighbour’s band up, and they won’t like you very much." A failed challenge could potentially increase bills for your entire street.
How to Submit a Successful Challenge
If both checks suggest you are overpaying, you can formally challenge your banding. Homeowners in England and Wales must contact the Valuation Office Agency (VOA). Those in Scotland need to submit their case to the Scottish Assessors Association (SAA).
The potential reward is significant: not only could your future monthly bills be reduced, but you are also entitled to a backdated refund for every year you have overpaid.
This process led to a major win for viewer Ian. After watching the programme, he questioned his banding. "After living in my current house and paying band D since 1994, they finally changed it to band C and I received just short of £6,000," he shared. "What a result."
This case highlights the importance of checking your banding, especially if you have lived in your home for a long time or never questioned the assessment. With hundreds of thousands potentially affected, a few minutes of research could lead to a life-changing refund.
