How to Reclaim Overpaid Council Tax | Claiming a Council Tax Refund

Even though there are millions of pounds worth of overpaid council tax in public coffers, most people aren’t aware that they’re often in credit when moving home. Our guide explains what council tax is, how to get a council tax refund if you’ve overpaid and how long this process can take.

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Navigate our article on council tax refunds:

• What is council tax and who has to pay it?
• Why are so many people owed council tax refunds?
• What is a council tax appeal and can you make one?
• How to reclaim overpaid council tax
• How long does a council tax refund take?

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What is Council Tax and Who Has to Pay It?

Council tax is a yearly fee that you pay towards your local council. The cost is set by your council – you can check your council tax band here – and goes towards funding local services.  

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If you’re 18 or over, then you’ll normally have to pay council tax, including when renting a property. 

There are some situations where you don’t need to pay council tax. Below, we’ve listed which people don’t have to pay council tax:

• Anyone under 18 years old
• 18-19 year olds who are in full-time education
• Full-time students at college or university
• People on certain apprentice schemes
• Under 25 year olds who get funding from the Education and Skills Funding Agency
• Student nurses
• Foreign language assistants who are registered with the British Council
• Live-in carers for people who aren’t their partner, spouse or a child under 18
• Severely mentally impaired

If you fall under one of these groups, then you should be able to apply for a discount/full refund on your council tax bill if you get one.

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Why Are So Many People Owed Council Tax Refunds?

There are a surprising amount of reasons why people overpay on their council tax:

• Most people pay for their council tax in advance – A year’s council tax is split up into around 10 instalments. So if you’ve paid up to May but end up moving out earlier in the year then your council tax account will be left in credit. The majority of councils give automatic refunds, but some still don’t offer this.

• Forgetting to cancel a direct debit/standing order when moving out of a property – Forgetting to cancel a payment could mean that you pay for a property you aren’t even living in anymore.

• Properties being moved to a lower council tax band after you’ve moved out of it – Retrospective discounts can cause you to overpay on your council tax. The most common example of this is a property being moved into a lower council tax band, making council tax cheaper. If the person who lives in a property after you is able to get the council tax band lowered, this will technically mean that you overpaid and could be owed a refund as a result.

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What is a Council Tax Appeal?

It’s not uncommon to receive a council tax bill which for whatever reason, you don’t think is correct. When this happens, you might be able to appeal it. If the appeal is successful, then you should get a refund for the overpaid council tax, along with a reduction on future council tax bills.

Below, we’ve gone into whether you’re able to make a council tax appeal. We’ve then gone over the process for getting a council tax refund.

Are You Able to Make a Council Tax Appeal?

You should only appeal if you think your bill is incorrect. Some of the things that could happen to cause a bill to be incorrect include:

• Not being given a discount that should apply

• Being sent bills when you aren’t the one who needs to pay council tax (e.g. if you’re a landlord and it’s the job of your tenants to pay it)

• Your property being placed in the wrong council tax band

• Being wrongly given a penalty notice

• If you’ve been charged for council tax but fall into one of the groups we talked about earlier who don’t have to pay it

• If your home is classed as an exempt dwelling (it could be exclusively occupied by students or be armed forces accommodation)

Next, we’ve explained the two best ways to see if you’re owed excess council tax:

• Check if your old council offers an online claims form – This is probably the simplest method. All you need to do is google “[council name] council tax refund form” and more often than not, you should be able to find one. Just make sure that the form isn’t ridiculously long. Some councils ask for a heap of information and it stops being worth your time.

• Call or email your council – If there’s no online form or there is an online form but it seems too time-consuming, then calling or emailing is the next best option. This is usually straightforward but can lead to long waits, especially when dealing with an inefficient council. And there’s a good chance you’ll have to fill in a form at the end of the process anyway.

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How Do You Reclaim Overpaid Council Tax?

Here are the three steps you should follow to reclaim overpaid council tax:

1. Check your council tax bill

Your council should send your yearly bill in the post. This council tax calculator can show you what’s being paid by those in other postcodes and different council tax bands.

2. Call, email or write to your local council

If you definitely want to appeal your bill and get a council tax refund, then you should email/write to your local council and explain why you think the amount is wrong. You could also give them a call. Try and include as much detail as possible. Being able to provide any documents that prove the circumstances you’re talking about may help your case.

The council will then have around two months to respond. If they rule in your favour, then your council tax bill and monthly payments will be adjusted accordingly.

If this appeal is rejected or you just don’t receive a reply, then head over to step 3 (below).

3. Appeal to the valuation tribunal service

If you haven’t got a reply or aren’t happy with the reply you got, then get in touch with the valuation tribunal service. They’ll review the information from you and your local council before deciding on the case.

They might ask you to appear at a court hearing to settle the case. Don’t worry, there won’t be any charge involved if this happens!

Afterwards, the case will either be ruled in your favour (and your local council will be told to change your council tax bill) or not in your favour (meaning the bill will stay as it is).

How Long Does a Council Tax Refund Take?

This depends on how you get in touch with the council. It’s also luck of the draw – you might belong to a speedy council or one that really takes their time. The quickest way to get the ball rolling is by ringing – they should be able to immediately tell you if there’s credit on your account or not. 

You can also contact the council by email or by filling in an online claims form. This will almost definitely take longer – likely over 14 working days to get your query dealt with. Unless you urgently need the refund though, this is probably the less stressful method.

When you’ve let the council know that you’ve moved, you should get a direct debit refund within 28 days.

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