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Martin Lewis has shared his ideas for making financial savings probably price hundreds via some little-known council tax hacks.
As payments proceed to rise in 2026, the cash knowledgeable has suggested households that they could possibly be overpaying on the native authority levy, providing three key methods to test.
His recommendation comes at a vital time, with council tax payments set to extend throughout England and Wales in April by the utmost quantity as soon as once more.
Reductions on council tax can be found for a number of causes, whereas property bands can truly be challenged below sure circumstances to cut back month-to-month prices.
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Mr Lewis not too long ago revealed on his Cash Present Stay (ITV) that one viewer had saved “simply wanting £6,000” via this technique, after the council tax band on the property she had lived in since 1994 was revised.
The cash knowledgeable stated: “£6,000 is middling for the successes I get. I’ve seen 10, 11, 12 thousand. This is essential to do”.
Right here’s are Mr Lewis’s high three tricks to reduce council tax in 2026:
Problem council tax band
One of many key methods folks can scale back their council tax is by guaranteeing they’re within the appropriate property band, which decides the speed at which they pay the levy.
Hundreds of individuals have been capable of problem the federal government on their property’s council tax band in 2023/24 (when the information was final revealed) leading to a decrease council tax invoice.
Of the 43,820 folks that requested for a revaluation on this interval, almost 1,000 have been capable of decrease their band by two locations or extra, official figures from the Valuation Workplace Company (VOA) present.
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Evaluation by Mr Lewis’ MoneySavingExpert.co.uk has estimated that round 400,000 households are within the unsuitable band – and so paying an excessive amount of in council tax – and will think about making a problem.
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If profitable, the family won’t solely be due a decrease invoice going ahead, however probably even a large backdated payout for on a regular basis they have been paying the unsuitable stage of tax.
The banding system is commonly criticised for being outdated, as the worth of properties stays based mostly on an evaluation carried out in 1991. These values have modified dramatically lately, with some areas seeing huge spikes in property worth, and others seeing drops.
Nevertheless, revaluations are usually not based mostly on immediately’s costs, however nonetheless based mostly on 1991 market charges. Because of this the VOA will take the bodily traits of a property under consideration, slightly than immediately’s worth.
Due to this, the company can truly place the property into the next tax band if it believes the worth has turn out to be greater because it was final checked.
In very unfortunate instances, a revaluation may additionally lead to neighbouring properties being positioned into the next band.
Test for reductions or assist
There are a number of reductions that may be claimed on council tax for eligible households price as much as 100 per cent, however they should be utilized for in most situations.
One of the crucial frequent is for individuals who reside in a property alone, which means they’ll declare a 25 per cent low cost on their council tax.
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College students households are eligible for a 100 per cent low cost on council tax, alongside adults thought-about to be severely mentally impaired (SMI). Within the case that an SMI grownup resides with a live-in carer, the low cost is decreased to 50 per cent.
Councils additionally provide a discretionary discount for these dealing with extreme hardship which suggests they’re unable to afford their council tax invoice.
That is accomplished on a council-by-council foundation, so eligibility differs, however typically will embrace having revenue beneath a set stage, claiming sure advantages, and probably having an sickness or incapacity.
Reclaiming overpaid council tax
Lastly, people are capable of reclaim overpaid council tax from an authority for funds of £100-plus.
MoneySavingExpert.co.uk reviews that £141 million is owed to council tax-payers throughout 349 native authority areas in England, Scotland and Wales, with over 800,000 households affected.
There are numerous causes an individual could possibly be owed. As an example, they may pay their council tax upfront after which transfer home, or overlook to cancel a fee.
A tax payer may even be owed a retrospective low cost if a property they beforehand lived in has been re-banded, which means they have been overpaying when residing there.
Some councils provide an internet kind to make claims, whereas others would require these to electronic mail or name.
