Martin Lewis has issued a council tax warning to anyone who is currently paying it.
The Money Saving Expert founder says that hundreds of thousands of people could be 'missing out' on getting a discount of up to 50 percent off their payments. He posted a seven-minute explainer video to his Twitter account to explain that people across the UK could be due a backdated pay out.
The 50-year-old consumer champion said that those paying council tax in England, Scotland and Wales could be owed cash totalling huge sums if they have been overpaying their tax. From this month, council tax is expected to rise by five percent for millions of homeowners and tenants.
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However, the monthly payments could be reduced considerably if you are eligible for one of the discounts available. In the tweet, Martin wrote: "Are you due a council tax discount? 100,000s are missing out (& some maybe due backdated payouts too) so I’ve quickly filmed a video briefing to take you through it. Please share with anyone it is relevant to…".
In the video, Mr Lewis how council tax is calculated, and that it doesn't just go off the value of your house, but who lives in it. Those who are aged 17 years old or younger, or you are a student in full-time education, then you are not classed as a qualifying adult and therefore should not be paying council tax, the MEN reports.
The 50-year-old explained: "If there are two or more qualifying adults in the house, then you pay the full council tax. If there is only one qualifying adult, then you get the single-person 25 percent discount. An all-student household also does not pay council tax as there are no qualifying adults."
Martin went on to explain that people living with a severe mental impairment (SMI) are also eligible for a discount on their council tax. He said: "This affects people with severe dementia, Alzheimer's, severe strokes. I've just got a £10,000 backdated success 'thank you' in from somebody who has multiple sclerosis, even people with severe Parkinson's, so a whole range of conditions.
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"There are two eligibility tests you must pass to get the SMI discount, the first is that you must be medically certified by a doctor that you have a severe impairment of intelligence and social functioning that appears to be permanent.
"Plus, you also need to be receiving a qualifying benefit. That includes many means-tested benefits but also many non means-tested benefits that are common for people with disabilities."
Martin then added: "Up to 400,000 people are in the wrong council tax band, many of them in too high of a band, and you may be able to get your band lowered and a backdated payout."
Discounts and reductions are worth at least 25 percent off your total bill, although there are also many people due near to 50% off – if not the whole bill wiped entirely. In brief, discounts and reductions can be awarded to people including (but not limited to):
- Students
- People who live alone (or only with under-18s)
- People living with a severe mental impairment (SMI)
- Those on a low income / benefits / universal credit
- Those on pension credit
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