Martin Lewis has issued a word of warning to anyone who is paying council tax on their home. The financial guru, who is the founder of MoneySavingExpert, has said that hundreds of thousands of people could be 'missing out' on getting a discount of up to 50 percent off their payments.
In a seven minute-long explainer video posted on Twitter on April 25, which has since amassed more than 285,000 views, Martin Lewis said that those paying council tax in England, Scotland and Wales could be owed a backdated payout of thousands of pounds if they have been overpaying their tax.
The warning comes as council tax is expected to rise by five percent for millions of homeowners and tenants in April - but your monthly payments could be reduced significantly if you are eligible for one of the discounts available.
READ MORE: Join the FREE Manchester Evening News WhatsApp community
In a tweet sent out to his 2.2 million followers, 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…".
The video began with the money-saving expert explaining that the discount could mean your council tax is lowered substantially going forward, but you could also be due a backdated payout from when you were eligible that may be worth thousands of pounds.
Martin then explained how council tax is calculated, and that it doesn't just go off the value of your house, but who lives in it.
If you 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.
"If there are two or more qualifying adults in the house, then you pay the full council tax," Martin, 50, explained.
"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.
"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," he said.
"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
You can visit the Money Saving Expert's Council tax discounts guide which has full information on who qualifies, how much discount you could receive and how to apply for each discount.
Sign up to our free weekly property newsletter by clicking here
READ NEXT:
This house is on the market for just £30k - but it's not for the faint hearted
'We live rent-free in stranger's homes around the world - we've now saved thousands'
First-time buyer transforms 'worst house on the street' into something beautiful
Brand new £2.5m Hollywood-style home near Greater Manchester with cinema, gym and huge 2-acre plot
- 'Move-in ready' £290,000 house in one of Greater Manchester's most sought-after areas
