HOUSEHOLDS are owed around £141million after overpaying their council tax bills – but many are unaware they could be missing out.
Millions of households saw their council tax bill rise by around 5% last month.
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This pushed up the average council tax bill of a Band D property in England by £111 a year, to £2,392.
But you may be owed a council tax refund if you have paid more on your bill than you owe.
Usually this is not a problem as the extra credit will be added to your account.
But if you close your account while in credit, for example because you move house, then you may not get the cash back.
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Here we explain why you could be owed cash and how to reclaim it.
You forgot to cancel a payment
If you pay your council tax by direct debit then the money is automatically taken from your account in installments.
But if you move house and forget to let the council know or cancel your direct debit then it could continue to take money from your account, even though you no longer live there.
You pay your bill in installments
Council tax is usually paid in advance in ten or 12 installments.
For example, if you make ten payments to cover the period of April to March but move out in mid-February then you will have overpaid by almost two months.
Often councils will automatically give you a refund before they close your account.
But if yours fails to do so and you don’t reclaim the credit then you could lose it.
Your house is in the wrong council tax band
You may be able to get a council tax refund if your house is in the wrong council tax band.
If you think your house is not in the right band then you can challenge it for free through the Valuation Office Agency.
You will need to give evidence, such as properties similar to yours that are in a lower band.
But before you do this be aware that your band could go up as well as down.
Meanwhile, you could also be owed cash if you move out of your property and the new owner successfully applies to get their tax band lowered.
This means that you could have overpaid your bill, so the credit could be applied to your closed account.
You can check if your old home has been rebranded in England and Wales using the Government’s Council Tax band checker.
How to get your money back?
The best way to get your money back depends on your council as each one has their own process.
Visit your council’s website for more information.
You can also search for “[council name] Council Tax refund form”, which may bring up the form you need to apply.
It may also take you to the page explaining how to apply.
You may need your council tax reference number to apply, which can be found on your old bills.
If you’re struggling to apply then call or email your council.
It should help you track down the details you need to reclaim your missing cash.
What council tax support is available?
THERE are several ways you can get discounts and reductions on your council tax bill.
In some cases, you can even get the bill completely wiped with a council tax reduction.
Factors such as your household income, whether you have children, and if you receive any benefits, will influence what you get.
To apply, visit https://www.gov.uk/apply-council-tax-reduction.
You’ll need your National Insurance number, bank statements, a recent payslip or letter from the Jobcentre, and a passport or driving licence when filling out the details.
Below, we reveal all the ways you can get discounts or a reduction on your bill:
Single person discount
If you live on your own, you can get 25% off your council tax bill.
This also applies if there is one adult and one student living together in a property, or if there is one adult and one person classed as severely mentally impaired in the home.
If you live with someone who doesn’t have to pay council tax, such as a carer or someone who is severely mentally impaired, you could get a larger reduction too, of up to 50%.
And, if you live in an all-student household, you could get a 100% discount.
Retirees
Pensioners may also find themselves eligible for a council tax reduction.
If you receive the Guarantee Credit element of Pension Credit, you could get a 100% discount.
If not, you could still get help if you have a low income and less than £16,000 in savings.
And a pensioner who lives alone will be entitled to a 25% discount too.
Low-income households
If you are on a low income or receiving benefits, you could be eligible for a reduction on your council tax.
Whether you are eligible will vary depending on where you live.
You could also get a deferral if you’re struggling to pay your bill, or you can speak to your council about setting up a payment plan to manage the cost.
But one thing to remember is if you are struggling you should contact your council as early as you can.
