Imagine paying hundreds or even thousands of pounds more than you should every year. Frustrating, right? This is happening to many UK households because they are in the wrong council tax band. Money-saving expert Martin Lewis warns residents to act quickly before the chance to challenge this ends.
At Clarkwell & Co. Chartered Accountants in London, we help clients across the UK who are often shocked to learn they might get a council tax refund worth thousands. Many people misunderstand council tax, and they only realise they’ve been overpaying when it’s too late. In this guide, we explain how to save on your council tax band, check your council tax band, and navigate the appeal process confidently. We will also show you how our team can help you reclaim what you’re owed and find other ways to save on taxes.
Why This Matters More Than Ever in 2025
The cost of living keeps rising, and council tax increases in the UK for 2025 have made things worse. In many areas, Band D bills have gone up by 5%, and some councils have raised them by as much as 10%. In Scotland and Wales, increases range from 4.5% to 9.5%, with some councils adding extra fees for adult social care and environmental services.
These changes impact real people. They affect families budgeting for childcare, retirees on fixed incomes, and landlords with multiple properties. It’s crucial to ensure you’re paying only what you owe. If not, you could miss out on significant savings in your council tax band, a backdated council tax refund, or a long-term adjustment that puts money back in your pocket each year.
Martin Lewis’ Council Tax Warning: Are You Affected?
Martin Lewis’s council tax advice has helped millions save money, and this time is no different. He recently said that over 400,000 households in the UK might be in the wrong council tax band and paying too much. This can happen because property values haven’t been updated since 1991.
His main message is clear: if you’ve moved recently, bought a new home, or have lived in the same place for years without checking your band, now is the time to act. You have six months after moving to challenge your band officially. After that, it gets harder, but it’s still possible. Taking action can help you reclaim thousands instead of overpaying.
Are You in the Right Council Tax Band?
Many homeowners have never thought to ask, “Am I in the right council tax band?” This question could lead to significant savings. Figuring this out isn’t random; it involves comparing your property to others based on value.
Start by looking at your street. If similar homes are in lower council tax bands, that’s a warning sign. You can quickly check your property tax band using online tools from the VOA or your local council. At Clarkwell & Co., we assist clients in checking their banding against public data and preparing appeals with solid evidence.
Two Checks That Could Save You Thousands
Martin Lewis suggests two important checks before you appeal your council tax band. These steps can help you succeed.
- Neighbour Comparison: Check your neighbours’ council tax bands using gov.uk or your local council’s website. Make sure the homes you compare are similar in size, layout, and age. If your house is in Band E but your identical neighbour’s house is in Band D, something is wrong.
- 1991 Valuation Estimate: Council tax bands are based on home values from 1991. You need to estimate what your home was worth then. You can use tools like Zoopla or Nationwide’s House Price Calculator for this. If your estimated value is lower than the limit for your current band, you might have a good reason to appeal.
Doing both checks makes your argument stronger. However, be cautious; asking for a band reassessment might raise your rate instead of lowering it, which could impact you and your neighbours. At Clarkwell & Co., we offer data-driven advice to help you support your claim.
How to Challenge Your Council Tax Band: Step-by-Step
If your checks show a mistake, take action to challenge your council tax band. A successful challenge can lead to big refunds and future savings, so make sure you do it correctly the first time.
In England and Wales:
- Visit the Valuation Office Agency (VOA)
- Submit a formal challenge online
- Attach supporting evidence, including your neighbour comparison and 1991 valuation estimate
- Wait for their response; it can take a few weeks to several months
In Scotland:
- Use the Scottish Assessors Association portal
- Submit your challenge within six months of moving in or identifying the discrepancy
- Prepare for a more evidence-heavy process
Our skilled tax advisors will help you with the council tax appeal process. We aim to ensure accuracy, lower risks, and increase your chances of success.
Real-Life Wins: Council Tax Refund Success Stories
Clients have received refunds between £1,500 and £7,000 because they were in the wrong tax band. One client in Croydon was in Band F for nearly 12 years while similar homes were in Band E. After we challenged this, they got a refund, and their monthly bill decreased.
Another client in Islington inherited a property and thought the tax band was correct. Our review found an error, and after appealing, they received over £5,000 back.
These cases are not rare; they are happening more often. Imagine getting a council tax refund from previous years. That money could help pay bills, reduce debt, start savings, or support children’s education.
What If You Own Multiple Properties?
Owning multiple properties, whether as a landlord, investor, or family member, increases the risk of overpaying taxes. A single wrong banding can affect your entire tax situation.
That’s why expert help is essential. At Clarkwell & Co., our Property Tax Accountants in London assist landlords and estate managers by reviewing their portfolios. We check council tax bands, find problems, and handle appeals for you. Whether you have rental properties, vacation homes, or inherited estates, we can help reduce extra costs.
Beyond Council Tax: Don’t Miss Other Tax-Saving Opportunities
Checking your council tax band is important, but it’s just the start. At Clarkwell & Co., we look at your finances as a whole to help you save money on property ownership and wealth management.
- Inheritance Tax: If you’ve inherited a home, it’s crucial to manage property taxes correctly. Our Inheritance Tax Advice service ensures you pay only what you need to.
- Capital Gains Tax: Planning to sell a property or change ownership? Our Capital Gains Tax Service in London helps you plan wisely to avoid costly mistakes.
- General Property Tax Planning: Want to lower your tax bill across multiple properties? Our Property Tax Accountants in London are ready to assist you.
We believe in planning ahead, which helps our clients achieve lasting financial growth instead of just quick gains.
Act Now: How to Start Your Council Tax Band Check Today
The sooner you begin, the more you stand to gain. Start with these steps:
- Visit your local council or the VOA website
- Conduct a property tax band check for your home and neighbours
- Estimate your 1991 property value
- Compare the value with current banding thresholds
- If the evidence supports it, submit a challenge online
- Contact Clarkwell & Co. if you need help at any stage
Not sure yet? Contact us. We offer a free initial consultation to help you understand your options. Whether it’s council tax, capital gains, or inheritance planning, we can assist you.
Don’t Pay More Than You Owe
Paying too much tax is never enjoyable. But with Martin Lewis advising on council tax and many people already reclaiming their money, now is a great time to take action.
You have nothing to lose and potentially thousands to gain. At Clarkwell & Co., we help you manage your finances, from saving on council tax to strategies for property and capital gains tax. We offer expertise, accuracy, and a personal touch in everything we do.
No matter if you live in a townhouse in London, a flat in the suburbs, or a cottage in the countryside, today is the day to ask yourself: “Am I in the right council tax band?” A simple check could lead to a significant refund.
