Council tax too high? Here's how one in four cut their debt last year

Council tax is a huge expense for many households, but did you know that one in four people who challenged their council tax collection last year successfully reduced their debt?

That's right—over 10,000 households have their council tax reduced, potentially saving them hundreds of pounds.

If you think your home may be in the wrong band, you may need to challenge it. Here's everything you need to know about how to do it.

Why challenge your council tax collection?

Your council tax band is based on the value of your property in April 1991 (for homes in England and Scotland) or April 2003 (homes in Wales).

If the original appraisal was incorrect or if changes have been made to your property since then, you may be paying more than you should.

The Valuation Office Agency (VOA) dealt with 39,590 council tax challenges last year, and 27% of them resulted in a lower band.

That means those households will now pay less council tax and may get a refund for overpayments they made in the past.

How to check if you are in the right band

Before making a formal challenge, it's important to do a little research:

1. Check out your neighbors' bands: If your neighbors have similar locations but are in a lower band, this may be a sign that your band is not right. You can compare your local band with others on the VOA or Scottish Assessors Association (SAA) websites.
2. Check the value of your property: Use the Nationwide House Price Index to estimate what your home was worth in 1991 (or 2003 in Wales). If the price suggests you should be in the lower band, you may have grounds for a challenge.
3. Contact VOA: If your research shows that your home is in the wrong group, you can ask VOA to review it. You will need to provide evidence to support your case, but if the review is successful, your council tax band will be reduced.

Making a legal challenge

If you are convinced that your group is wrong, you can make a formal proposal to VOA.

This is different from a band review and does not require you to provide evidence in advance. However, if your proposal is rejected, you can appeal to the Valuation Tribunal.

It is important to note that there is a small risk that your belt may be raised instead of lower, which can increase your credit. But this is rare—only 0.08% of challenges resulted in a higher band last year.

Other ways to reduce your council tax

Even if your band is correct, there are other ways to reduce your council tax:

• Discount for one person: If you live alone, you can get a 25% discount.
• Discounts for underserved people: You can also get a discount if you live with someone who doesn't count for council tax purposes, such as a full-time student or someone under 25 in approved training.
• Ease of difficulty: If you are struggling to pay your council tax, your local council may be able to offer you support, including payment rescheduling, discounts for low-income households, or hardship relief.

What happens if you can't pay?

It is important not to ignore your council tax bill. If you have trouble paying, contact your local council as soon as possible.

They can offer support, but if you don't pay after receiving the final notice, the council can take legal action against you, which may include sending bailiffs or taking money directly from your wages.

Final thoughts

Challenging your council tax band can save you a huge amount of money. By checking your band, doing some research, and contacting VOA, you can find out if you are entitled to a lower payment.

And even if your band is ready, there are still other ways to lower your bill and get financial support when you need it.