Hundreds of thousands of households across England, Scotland and Wales are owed a refund on their council tax. This is mainly due to flaws in the way councils’ tax bands were historically calculated and the failure of councils to share information with taxpayers.
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In this step-by-step guide, personal tax experts UMW Accountants, explain how you can find out if your home is in the right council tax band and, if it isn’t, how to go about claiming a council tax refund.
Why you might be due a council tax refund
Both homeowners and renters have been found to have overpaid their council tax. The common factor between those who have overpaid is that they have moved house since 1993, and started dealing with a different local council.
Typically, the council will refund credit or adjust your bill at your new address but if you have moved to an area that’s managed by a different council, you’re more likely to have unclaimed funds in your previous council tax account.
There are two common reasons why you might have overpaid your council tax.
- Advance payments —if you paid your council tax in advance, but moved home before the end of your payment period. Some councils split a year’s worth of council tax over 10 instalments, so if you moved to a new area after paying an instalment your council tax account is likely to be in credit.
- Council tax band changes —A new system for valuing properties for council tax purposes was launched in 1991. The system was imperfect and many homes ended up being overvalued and thus put in the wrong council tax band.
If your current or previous property is re-evaluated and found to be in a lower council tax band, you may have been overpaying your council tax since 1991!
We’ll now explain how you can check if you’re eligible for a refund, including how to check if your old property was rebanded.
How to find out if you’re owed a council tax refund
Currently, the only way to find out if you’re owed a refund on overpaid council tax is by contacting your council. Before reaching out to your council to see if your old council tax payment account is in credit, the first thing to check is whether or not any of your old homes have been rebanded.
Many local councils have tools for checking the council tax band for a property, so it’s worth checking the website of the relevant local council. The UK Government has an online tool for checking the council tax band of any property in England and Wales. If any of your previous homes were in Scotland, use the Scottish Assessors Association council tax band checker.
These council tax band checking tools will show the current band. If the council tax band has changed from the time you were living in the property, then you may be owed a refund on overpaid council tax.
Even if the council tax band hasn’t changed, you may still be due a refund from your old council.
What you need before you contact your old council
As you’re probably aware, dealing with local authorities usually involves a fair amount of waiting in queues to speak to someone over the phone and/or being put on hold. To save yourself from the back-and-forth it helps to gather some key information before you contact your old council.
- Old council tax reference number: Most councils require the reference number tied to your previous account. This can usually be found on past bills or correspondence.
- Gather documentation —gather evidence of the payments you made to your old council, such as old council tax bills or bank statements. You’ll need to confirm the council tax band your old home was in and you’ll need to be able to calculate the total amount of council tax you paid before moving out of your old home.
How to claim a council tax refund
The exact process for making a claim varies from one council to the next but, generally, there are two options: completing an online form or contacting the council directly.
The online form is the convenient option as it allows you to set out your claim logically by providing the required evidence. Contacting the council directly is slightly more tiresome as it involves more correspondence and/or time-consuming phone calls.
1. Via online form
Many councils offer an online form for council tax refunds. The quickest way to check if a council tax refund form exists is to do a quick Google search for “[Council name] council tax refund form,” which should take you to the relevant page or form.
If you can’t find the refund form through this method, try going through the council tax pages on the council’s website. Usually, information about overpaid council tax or how to claim a refund can be found under the heading “Help with council tax payments” or similar.
The online form will require you to provide information to support your claim, such as; your council tax account reference number, dates of residence at the address, an estimate of the refund amount you are claiming, and proof of identification.
Once you have submitted your form the council will then get back to you to go through your claim. In some cases, councils can approve the refund directly based on the information provided in the form.
2. Via email or telephone
If you can’t find an online form for claiming a council tax refund, you’ll have to reach out to your council directly.
All councils have a council tax department that deals with overpaid council tax and refund claims. Save yourself time by finding the email address or telephone number for this specific department.
Other ways to reduce your council tax
Even if you’ve found that the council tax band valuation on your previous and current home is correct, or you’ve had a council tax refund claim denied, you may still be able to reduce the amount of council tax you pay.
Local councils in the UK offer a wide range of discounts and reductions on council tax payments. These reductions are means-tested, so will depend on your circumstances and level of income.
Some councils also take applications for discretionary discounts, where they will individually consider each application.
Take control of your finances
In challenging economic times, it can be tempting to hold on to what you’ve got, but taking control of your finances is essential to safeguarding your future. With a personal tax advisor on your side, you can gain a full understanding of your tax position and more confidently plan you and your family’s finances.
