This Martin Lewis council tax tip could save you £100s (and even bag you a payout worth £1,000s)
The nation's favourite money-saving expert is at it again
Money-saving expert Martin Lewis has shared a council tax tip that could help thousands of people reduce how much council tax they pay.
He highlighted that by checking whether you can get a council tax reduction, or even an exemption (where you don't pay any council tax at all), you can significantly reduce your council tax bill going forwards. Better still, you could even be owed a backdated payment that could be worth thousands of pounds.
In a video posted to his Twitter account, Martin Lewis added that it's important to understand how council tax is calculated and how the amount you pay is decided, before seeing if you are eligible for a discount.
Watch Martin Lewis' council tax tip video
Are you due a council tax discount? 100,000s are missing out (& some maybe due backdated payouts too) so I’ve quickly filmed a video briefing to take you through it. Please share with anyone it is relevant to… pic.twitter.com/Gs6Eonz6kQApril 25, 2023
In the video, Martin Lewis explains that 100,000s of people in England, Scotland and Wales could be entitled to a council tax discount of up to 100%, but aren't currently claiming it.
But as council tax has gone up in April, it's never been more important to find out if you are paying more than you need to, and whether you could be owed a backdated refund. If you are found to be eligible for a discount or exemption, you could get a refund back to the date you became eligible for the discount - not just when you applied for it.
Martin goes on to explain that the full council tax rate for a household is payable if there are two qualifying adults living there. If there is only one qualifying adult living in a property, then you could get a 25% discount on the amount of council tax you pay through the single person discount.
Those who are classed as non-qualifying adults, do not have to pay council tax. This includes:
GoodtoKnow Newsletter
Parenting advice, hot topics, best buys and family finance tips delivered straight to your inbox.
- Those aged 17 or younger
- Full time students
- Those with severe mental impairment (who meet the required criteria)
- An adult carer who lives with someone with a severe mental impairment.
Martin also adds that there are up to 400,000 households who are in the wrong council tax band, many of whom could be incorrectly in a higher tax band and paying significantly more council tax than they should be.
It is possible to challenge your council tax band and get it lowered, and you should be able to get a refund if you have been paying too much. But it's important to remember that if you challenge your council tax band, it could be found that you are in too low a tax band and that you should actually be in a more expensive one. So make sure you speak to your neighbours and do your research before you challenge.
How to reduce your council tax if you don't qualify for a discount
If you don't qualify for a discount on your council tax, you still might be able to reduce your council tax payments.
Most people pay their annual council tax bill in 10 instalments, with a break in February and March each year. But if you are struggling to afford your council tax, you could change your payment schedule so you pay your annual bill in 12 instalments instead. While the amount you pay over the year remains the same, each instalment will be lower if you pay over 12 months rather than 10.
Sarah is GoodtoKnow’s Consumer Writer & Money Editor and is passionate about helping mums save money wherever they can - whether that's spending wisely on toys and kidswear or keeping on top of the latest news around childcare costs, child benefit, the motherhood penalty. A writer, journalist and editor with more than 15 years' experience, Sarah is all about the latest toy trends and is always on the look out for toys for her nephew or Goddaughters so that she remains one of their favourite grown ups. When not writing about money or best buys, Sarah can be found hanging out with her rockstar dog Pepsi, getting opinionated about a movie or learning British Sign Language.
-
Why do babies need to lie flat in a pram?
Wondering why babies need to lie flat? Experts reveal all — plus whether or not a baby should sleep in a pram
By Charlotte Duck Published
-
The 3 stages of play every parent needs to know to save their sanity (and you're probably nailing #2)
By Dr Amanda Gummer Published
-
Record number of families opt-out of claiming child benefit, but the decision could have serious repercussions for your future
Stark warning for families as number of parents who opt-out of receiving child benefit reaches 10-year high
By Sarah Handley Published
-
'It isn’t a holiday – it is crucial bonding time' - 70% of dads can't afford to take two weeks paternity leave, according to new research
The research also found that only 14 per cent of fathers were ready to return to work mentally after taking their paternity leave
By Sarah Handley Published
-
Two-child benefit cap 'pushes children into poverty' - campaigners urge government to scrap 'cruel policy' that impacts 1 in every 10 children
The controversial two-child benefit cap has met with strong opposition since its introduction in 2017
By Sarah Handley Published
-
Gen-Z could be costing their parents £1,300 a year, by refusing to do this one thing (but it's not always their choice)
It's not just parents who are facing the additional costs, the costs for Gen Z could be even higher
By Sarah Handley Published
-
More than half of parents want to do this important thing for their kid's education but can’t afford to, according to new research
Pressures on the family budget are preventing parents from paying for educational support outside of school
By Sarah Handley Published
-
75% of mums feel guilty buying things if they earn less than their partners, according to social media poll, and the comments section was part heartbreaking, part inspiring
Some mothers felt guilty for spending their partners money, while others saw it as household money instead
By Sarah Handley Published
-
10 best zoos in the UK based on ticket prices, reviews and value for money
The best zoos in the UK have been determined based on a number of key factors, include prices, popularity, Trip Advisor ratings and how many animals they have
By Sarah Handley Published
-
Child benefit is finally going to be made fairer - here's what's changing and when
Child benefit is finally going to be made fairer - here's what's changing and when
By Sarah Handley Published