COUNCIL Tax bills are set to jump this year as the rising cost of living continues to put pressure on Brits’ finances.
Local authorities are planning on hiking tax bills in April – we explain how to find your council tax band and how much you’ll have to pay.
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The Treasury has given councils the go-ahead to hike tax rates by up to 3% – and more can be added to pay for social care.
Some local governments are preparing to increase council tax by up to 5%, including the extra social care payment.
The amount you will pay depends on which council tax band your home falls under.
That’s based on how much the property is worth, with low value homes paying the least and more expensive houses charged a higher rate.
Here’s everything you need to know about finding out how much you will have to pay:
What is my council tax band?
Council tax bands are based on how much your property was worth on:
- 1 April 1991, for England and Scotland
- 1 April 2003, for Wales
Band A represents the lowest value of a home, while band H in England and Scotland and band I in Wales represents the highest value.
For example, a £300,000 house in England or Wales would be in band G while in Scotland it would be in band H.
You can check your council tax band here by entering your postcode.
The problem is that when the council tax system was brought in, the Government didn’t have time to get detailed information about each home in the UK.
So the people it hired to do the valuations ended up allocating each property a band “with just a glance”, according to MoneySavingExpert.com.
This is why thousands of homes across the UK could be in the wrong council tax band, and paying the incorrect amount.
How much do I have to pay?
Council tax is set by local authorities with the cash from the levy being spent to fund the budget for the area.
For example, the money is used to organise bin collection and fund businesses like council run leisure centres.
Every year, the Government sets the thresholds for how much a local council can increase the tax by.
If a council wants to push bills up above the threshold, they are required by law to hold a referendum, according to local.gov.uk.
How much you have to pay depends on what council tax band your property is in and where you live.
To find out how much tax you have to pay, you’ll need to check your local council’s website.
You can find out who your local council is by typing in your postcode in the Gov.uk checker.
What help is available?
The government is reportedly planning to give low income households a council tax rebate to help combat the rising cost of living.
Chancellor Rishi Sunak is expected to say that people in Council Tax bands A to C will receive rebates, The Times reports.
More than 15 million households could benefit with the biggest rebates going to the poorest households.
There are already existing schemes available to help you with your council tax bills.
For example, you could be eligible for an exemption or a discount if you’re a pensioner or on a low income.
Check the government website to see if you fit the criteria.
What if I’m paying more than I think I should be?
You might find that you’re already paying more for your council tax anyway even before a tax hike, according to Martin Lewis.
The MoneySavingExpert founder urged Brits to check their council tax band last month to see if they’ve been paying more than they should be.
As many as 400,000 homes are potentially in the wrong council tax band.
The first step is to check what council tax band your neighbours are on – you can then see if it matches your band.
Finally, you’ll also need to work out how much your property was worth in 1991, as this is when council tax was launched by the government.
MoneySavingExpert has a free calculator tool to help you do this, as well as a table on what band you should have been put in.
If you want to go ahead with a challenge, you can contact the Valuation Office Agency (VOA) in England and Wales or the Scottish Assessors Association (SAA) in Scotland.
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