How to get a rebate on your council tax as 'hundreds of thousands' of Brits overpaying

Brits have been urged to check whether they are "overpaying" their council tax, as numerous properties may be eligible for thousands of pounds in refunds. Finance expert Martin Lewis believes hundreds of thousands of homes throughout England and Scotland are likely placed in incorrect council tax bands.

This situation could have persisted for decades, he cautioned, with compensation payments worth thousands of pounds being "commonplace". Council tax represents a levy imposed by your local authority to fund specific services including refuse collection, road maintenance and libraries.

A portion also supports local police and fire and rescue services. Consequently, the sum you pay depends on where you live.

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Nevertheless, your bill will also differ based on your property type, as different property categories are allocated to various bands. This is what requires your attention, Martin said.

In guidance published on his Money Saving Expert website, he cautioned that properties in England and Scotland might be assigned to incorrect bands, resulting in wrong council tax payments.

He stated: "Hundreds of thousands of homes across England and Scotland are thought to be in the wrong council tax band. This means it's important to check your property's in the right band – something our tried-and-tested system can help you do. Some homeowners and renters have unknowingly been overpaying Council Tax for many years, even decades, because their bands are too high, so payouts worth £1,000s are commonplace."

He revealed that "many" properties have remained in incorrect council tax bands since 1991. A fresh council tax system was introduced that year, but without adequate resources, numerous properties were assessed with merely "just a glance" by officials who were literally driving past in vehicles.

Fortunately for Welsh residents, the Government has re-evaluated all properties, ensuring people there are now paying the accurate amount. However, this has not occurred in England and Scotland.

"So the flawed old valuation still dictates much of the kingdom's banding, which is why you could be paying more than your neighbour even though you live in exactly the same size property," Martin said.

There are several methods to verify whether you are paying the incorrect amount for your council tax.

You can:

• Discover if your band is higher than neighbours in comparable or identical properties - you can either ask them or search on the gov.uk website
• Calculate what your property was worth in 1991 - the simplest way to do this is to search on websites such as Nethouseprices, Zoopla and Rightmove

If you suspect your home is in the wrong band you should then challenge it, Martin said.

He advised: "If you're in England, the Gov.uk website helps explain how to go about challenging your council tax band. You can either contact the Valuation Office Agency (VOA) directly, at which point you'll be told how your band was decided, and have the opportunity to explain why you believe it is wrong and how it should be altered.

"Alternatively, you can check your band by entering your postcode and selecting your address from a list. Then you can click on the link asking if you think your council tax banding is wrong and you'll be given the option to fill out a checklist which suggests reasons you could challenge."

In Scotland, council tax bands are handled by the Scottish Assessors' Association (SAA). Simply enter your postcode in the Council Tax Bands search facility on the SAA homepage.

Martin continued: "Select your property from the list. If you want to challenge the banding, click on 'Make a proposal'. You can then fill in an online form which will be sent to your local assessor, who will contact you."

For more information visit the MSE website here.