PPI claims management firms have found a new way to make money by identifying homes that are in the wrong council tax band and offering to file a claim on their behalf. These companies identify potential customers by looking to see if any houses on the same street are paying more than their neighbors. They then cold call the identified properties and offer to claim a full refund for all years of overpayment, as well as a reduction in future council tax bills. This service is usually around 30% of any money claimed.
A lady was recently contacted by one of these claims management companies and discovered that she and her neighbor were in a higher tax band than the other properties on her street and could qualify for a full refund. She decided to hire the claims company and as a result, she was reimbursed £800! She paid the company £300 as payment for processing her claim and now she pays £10 less council tax each month. However, her neighbor decided to investigate how she could claim the money herself and found that the process was actually not too complicated. She also managed to get a full refund but kept 100% of the money she claimed!
How does it all work?
Every home in the UK is assigned to a specific assessment band, known as a council tax, which is administered by the Office of Assessment Agency. The cheapest bands are assigned a gradually increasing ‘A’ rating and the most expensive homes are assigned to the ‘I’ band.
For homes located in Scotland and England, the valuation band is designated by the property’s value in 1991, not the property’s current market value. However, if you reside in Wales, your tax bracket is allocated using the 2003 market price.
So if you suspect you may be in the wrong tax bracket and paying too much council tax as a result, just look at what your neighbors are paying. If you find that there is a difference in price but a similarity in property, then you may be able to receive a refund.
Visit ‘voa.gov.uk’ to see which band your neighbors have been allocated, if there really is a difference contact an agent from the Tax Office Agency and ask them to look into your claim. You’ll need to fill out the paperwork, but you can do it yourself, you don’t need a claims handling company, which means you get to keep 100%, not just 70%.
You will usually have to wait up to 30 days for your claim to be investigated, but if the Bureau of Assessment Agency agrees that a mistake has been made, your band will be changed. The service is free, not only can you get a nice lump sum, but you will also save on your future council tax bills.
