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Consumer: Value your house tax?
Are you paying too much council tax? Learn how to check - for free - reports Sophie Hazan.
WHEN Council Tax Review closed down it left a lot of angry customers in its wake.
West Yorkshire Trading Standards received almost 700 complaints about the firm, that challenged what householders paid in council tax.
Bungalows, flats, maisonettes, mobile homes and houseboats – whether owned or rented – are all subject to council tax.
How much you pay is determined by your local authority such as Leeds City Council.
Money generated goes towards local services such as libraries, rubbish collections and policing.
But in recent times homeowners have been challenging what they pay, after it emerged that thousands of properties were in the wrong valuation band.
Companies such as Council Tax Review, which has since shut, offer to do the work for a fee.
But company boss Jack “Darrell” Henry, pictured below, was handed a 9 month prison sentence suspended for 12 months at Bradford Crown Court for misleading his customers.
All were under the impression that their homes were in the wrong council tax band, and that they would get thousands of pounds back.
Many did not.
The 45-year-old from Mirfield admitted 14 consumer crimes, and was handed a sentence that included 150 hours in unpaid work, and payment of £12,000 in court costs.
Now Consumerwatch has spoken to council tax expert John Berry to find out how you can work out whether you are paying the right amount of council tax – for FREE.
Mr Berry is head of council tax policy at the government’s Valuation Office Agency (VOA), which is responsible for setting the valuation band that determines how much you pay to your local council.
He said: “You can challenge council tax bands in one of two ways.
“In a limited number of circumstances you can make a proposal to change your council tax band – but usually that has to happen within six months of buying or building a property.
“The VOA will then make a decision, after which you can appeal.
“If the six months has passed, you can provide evidence as to why you think your property is in the wrong council tax band, as we have an obligation to make sure that this is correct.
“You cannot appeal this decision.
“The myth is that it’s difficult to do, but the information is freely available.”
But before you take on the challenge, consider the facts.
Of the thousands of applications challenging council tax bands, only a “fraction” (less than one per cent) succeed.
And there is a small chance your council tax will go up – not down.
Mr Berry said: “If you look at the number of challenges we get in any one year the number of bands that change is only a fraction of one per cent.
“Of those, the majority will change to a cheaper band, which suggests that the tax payer is generally doing its research, but occasionally a household will put in a band challenge and find out they are not paying enough.
“In a small number of cases someone compares what they pay to a neighbour and it turns out the neighbour has actually been paying too little, so the neighbour’s tax bill goes up.”
Prospective house buyers should also do their research. If a vendor has extended a kitchen or perhaps converted a loft, it is possible the house will be placed in a higher band after the property is sold.
You can check this by looking at the address’s council tax band on the VOA website.
An ‘i’ by a property suggests improvements have been done, and that could affect the valuation band.
The valuation check:
* Find out what council tax band your neighbours are in. Visit www.voa.gov.uk, and use the postcode finder. If similar properties to yours are in a lower band, then you may have a claim.
* Estimate what your house was worth in 1991 – which is when house valuation bands were created. Many websites offer free historic sales price information dating back to 2000, such as Zoopla and Rightmove.
* Find the latest price and date of sale for your house, or a similar house on your street, and enter the information into a valuation calculator available at: www.moneysavingexpert.co.uk
If you are now convinced your property band is unfair, call and/or write to the Leeds VOA.
You will 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.
The Leeds VOA office is based at 42, Eastgate, Leeds, LS2 7JL, and is open on Tuesdays and Thursdays between 8.30am and 5pm.
Call 03000 501 501.
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