How to slash your council tax bill to £0 - and why you might be in the wrong band
Consumer rights expert Martyn James explains how you can save money on your council tax bill, from getting the right discounts to appealing your band
As Awful April rolls around, you might be staring in despair at your bills and considering following the advice in my Mirror columns on how to cut what you owe and save some cash. However, there are some bills we are stuck with, unless we move.
This is unfair, but even with these "no choice" payments there are ways to cut your bills. I’ll be covering water bills in a future column. But first, let’s look at your council tax bill, saving money – and appealing your council tax band.
How do I cut my council tax bill?
There is one sure-fire way to cut your council tax bill – and it’s so simple, you’ll kick yourself when I explain it! Almost all of the local authorities that set council tax in the UK will bill you over 10 months, so you get February and March for free each year. However, you can ask your council to spread the payments over 12 months instead.
If you’re paying £1,600 a year, then over ten months you pay £160 per month. But over 12, you pay £133.33 which saves you £26.67 a month. That’s a sixth off in real terms each month.
Single person discount
By far the best discount for most people when it comes to council tax is the single person discount. If you live alone then you can get a 25% discount on your bill. Don’t assume the council will have checked the Electoral Roll to automatically apply the discount. If you don’t have the reduction on your bill then tell them asap. If you share your home but someone moves out leaving you the sole occupant then you’re allowed to apply for the discount from the day this occurred too.
Are you ‘disregarded?’
It’s an awful term but some people are disregarded when it comes to calculating council tax. This reduces the number of residents, making you potentially eligible for the single person discount (or other bill reductions). Looking at the government guide, people in your household might be disregarded on your council tax bill if they fall in to any of these categories:
- If you are under 18 years old.
- On (some) apprenticeships.
- If you are 18 or 19 years old and in full-time education.
- If you’re at college or university.
- If you’re under 25 years old and get funding from the Education and Skills Funding Agency.
- If you’re a student nurse.
- Some people who fall in to more vulnerable categories might also be included; this is defined by the Government as having a severe mental impairment.
The level of discount can increase too, depending on your household and situation.
- You’ll get 50% off your bill if everyone living in your household is disregarded.
- You’ll get 25% off your bill if you pay Council Tax and either live on your own or everyone else in your home is disregarded.
- Finally, if everyone in the home is a student or classifies as having a significant mental impairment, you won't pay any council tax.
What if you or someone you live with has a disability?
If you or someone you live with has a disability or is ‘severely mentally impaired) you may also get a discount on council tax. The discount depends on your circumstances and can be found on GOV.UK. What’s more, you could have your property moved in to the next cheapest council tax band if you live in a property that’s larger than you would need if you were not disabled.
This might include having an extra bathroom, the structure has been modified to accommodate your needs and you have extra space for a wheelchair. Apply on GOV.UK.
Empty and second homes
If your home is going to be empty for a while – if you are in hospital for a while, for example, or having major renovations – you may be able to get a discount on your council tax. This varies from council to council though.
However, if you have a second (or more) home, then from 01 April 2025 you can be charged up to double the normal council tax for that property. What is defined as a second home is up to the council, though you can appeal. This is slightly different in Scotland.
Overpayments
Leaving aside discounts, you may have slightly overpaid your council tax without realising. That’s because we generally pay council tax each month in instalments which means you will usually be one month in credit. This means that when you move home to a different local authority, that overpayment isn’t always returned back to you.
You can claim back these overpayments through the former council’s website (type in the council’s name and ‘council tax refund’) and fill out their online form. As a general rule you’ll need your council tax account number. Refunds are ‘pro rata’ based on the date you moved out.
What if my council tax band is incorrect?
The way council tax banding is calculated is jaw-droppingly complicated and makes no sense. That makes working out if you are paying the right amount complicated. But you can appeal your council tax band – and even claim refunds for overpayments going back decades.
MoneySavingExpert estimated that just shy of 900,000 people are in the wrong band and could be owed £150 million! Here are the council tax bands for the different countries that make up the UK:
- England and Wales.
- Scotland.
- Northern Ireland has a rates system rather than council tax.
Your council tax band is based on what the council assessed the property as being worth on:
- April 1, 1991, for England and Scotland
- April 1, 2003, for Wales
If your property was built after these dates then your band is worked out based on…what your property would have been worth if it had been built before these dates! I know, I know. That’s bonkers but it’s how the bands work. Having said that, GOV.UK has a nifty tool that helps you work out the value of your property. As well as mistakes, other things can reduce your council tax band. GOV.UK website give the following examples:
- If your property has changed, if it’s been demolished, split into multiple properties or merged into one
- If your property’s use has changed, for example, if part of your property is now used for business purposes.
- If something significant has happened to the local area that has had an impact on your property and its value.
How do I appeal my council tax band?
You’ll need to appeal the band through these links:
If you think something has happened to your property that has reduced its value then you’ll need to provide proof. If you think there’s been a mistake in the value of your property, then you’ll need to demonstrate that at least five similar properties near you that are in a lower band. These should be roughly the same size, type, age and style or design
The easiest way to do this is to use the sale price of your home or nearby properties. The official guidance says the sales must be between:
- April 1, 1989 and March 31, 1993 - if your property is in England
- April 1, 2001 and March 31, 2005 - if your property is in Wales
There are also many free websites online with lots of historic prices, as well as the government’s price tracker. If you are living in England or Wales then you can appeal decisions to the Valuation Office Agency (VOA). In Scotland there’s an extra step to go through – you appeal to the local assessor first, after which the dispute is referred to the VOA too.
- Martyn James is a leading consumer rights campaigner, TV and radio broadcaster and journalist