• UK households could be owed significant council tax refunds due to overpayments

• Overpayments can stem from incorrect council tax banding, administrative errors, and unclaimed discounts

• The Valuation Office Agency (VOA) and Scottish Assessors Association (SAA) allow residents to check and challenge their council tax bands

• Refunds may be backdated if claims are successful, and residents should check payment history and banding

• Northern Ireland operates a different system, with property rates assessed by the Land and Property Services

UK households could be collectively owed hundreds of millions in council tax refunds due to overpayments.

That’s according to recent Freedom of Information (FOI) requests by The Sun and Money Saving Expert.

With an estimated three million people potentially eligible for refunds, it’s worth checking if you’re one of them, and taking a few minutes to check your council tax band and payment history could result in significant savings.

Refunds can arise from various situations, such as paying council tax for a property you no longer occupy, incorrect council tax banding, or overpayments due to administrative errors.

One of the more common reasons is the council tax banding system. Introduced in 1991, it was based on property valuations at the time, but many homes were placed in the wrong bands, leading to overpayments that could have continued for years.

Here’s how to investigate and claim a council tax refund online.

How to check your council tax band

The first step is to verify if your council tax band is correct.

In England and Wales, you can use the Valuation Office Agency (VOA) website, while residents in Scotland can check the Scottish Assessors Association (SAA) website. Northern Ireland operates a different system, which we’ll cover later.

To check your band:

1. Visit the VOA or SAA website

2. Enter your property’s address or postcode

3. Review the council tax band assigned to your property

4. Compare this with the bands of similar properties in your area

If you find discrepancies, historical property valuations can help you assess whether your banding is justified.

Online property valuation tools or historical sales records - which can be found relatively easily on websites like Rightmove and Zoopla - may offer guidance.

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How to challenge your council tax band

If you suspect your property is incorrectly banded, you can challenge the assessment.

In England and Wales, you can submit an appeal through the VOA website. You’ll have to provide evidence, such as valuations of similar homes or historical property prices, to support your claim.

In Scotland, lodge a proposal with the SAA via their website. Again, you should be prepared to provide comparable property data.

The authorities will review your case and may adjust your band. If successful, refunds for overpaid council tax are typically backdated to the date of your claim or when the error occurred.

Other reasons you may have been overcharged

There are several reasons someone might have been overcharged for council tax beyond incorrect banding.

Single Person Discount not applied: If you live alone or are the only adult in your property, you are entitled to a 25% discount. If this discount wasn’t applied, you could have been overcharged.

Changes in household circumstances: If a household member moved out, passed away, or became a student, your council tax liability might have decreased, but the council may not have updated their records.

Unclaimed exemptions: Some properties or individuals are exempt from council tax under specific conditions, such as students, carers, or individuals with severe mental impairments. If you were eligible for an exemption but didn’t claim it, you might have been overcharged.

Incorrect property details: The council tax assessment might have been based on incorrect information about your property, such as its size, use (e.g., residential vs. business), or condition.

Unnotified moving out: If you moved out of a property but didn’t notify the council promptly, you may have continued to be billed for a home you no longer occupied.

Duplicate payments: Overpayments can happen if you set up multiple payment methods (e.g., standing orders and direct debits) or accidentally paid twice for the same bill.

Errors in council systems: Administrative errors, such as incorrect account adjustments or misallocated payments, could result in overcharging.

Failure to adjust for property modifications: If you made significant changes to your home that should have resulted in a re-evaluation of your band, the council might have overcharged you. For instance, merging two flats into one property could lower your tax band.

Delayed refunds for overpayments: If you overpaid in the past and didn’t actively claim a refund, the council may have held onto the extra funds rather than automatically returning them.

Ineligible charges for empty properties: Empty properties are often eligible for reduced rates or exemptions, depending on the circumstances. If the council continued to bill you at the full rate, you may have been overcharged.

How to claim a council tax refund

If you believe you’ve overpaid council tax contact your local council to request a refund.

Many councils provide online forms for refund applications. You’ll need your council tax account number and proof of overpayment, such as old bills or bank statements.

If you think you might be owed a council tax refund, now’s the time to check. Have you ever had issues with overpayments or incorrect banding? Share your experiences and tips in the comments section.