There are growing concerns that thousands of the country’s poorest households could miss out on a community tax refund aimed at alleviating the cost-of-living crisis.
The £150 rebate announced by Chancellor Rishi Sunak in February aims to mitigate the impact of rising energy bills. But the Dissolution Foundation Think tank found that one in eight low-income households in England is not within eligible council tax bands.
Who is entitled to the municipal tax credit?
The relief is paid to households whose home was in Council tax bands A to D in England on 1 April. Around 20 million homes qualify, including 95% of rental properties. The property must be the residents’ sole or primary residence to qualify, so second homes and vacant properties are not eligible.
The council tax margin is based on the price at which the property would have been sold on 1 April 1991 in England and Scotland and 1 April 2003 in Wales.
Lindsay Judge, director of research at the Resolution Foundation, told the BBC the £3billion rebate plan was welcome but “imperfect”.
“Around 640,000 of the poorest families in England are not eligible for automatic support, including one in five low-income families in London,” she warned, adding that “there is no way to stop landlords from paying the rebate in lieu of their bill.” collect. paying tenants”.
How to request a refund
If you qualify for the reduction and pay your council tax by direct debit, your council will transfer the payment directly to your bank account. You don’t have to contact your local authority or do anything else.
In recent weeks, councils have “urged people to ensure they switch to direct debit so they can get paid as soon as possible”. i news reported.
Local authorities will contact anyone not paying by direct debit to arrange the rebate payment. The Local Government Association has warned that this will take longer as councils also have to carry out prepayment checks.
The Independent Office for Budget Responsibility has forecast takeup of 80% among those who don’t pay by direct debit, with around 7% of funds allocated by the Treasury Department not expected to be disbursed to eligible households.
The government has instructed local authorities to ensure that beneficiaries receive their rebate no later than September 30, 2022.
Can municipal tax scales be challenged?
Council tax bands can be challenged on the Government website. The website warns that “if you are contesting a property in England or Wales, you will be asked for evidence that your Council Tax Band is wrong”.
The evidence includes “the addresses of up to five similar properties in a lower council tax bracket than yours.” And “You may also use the price at which your property or similar property was sold” if the sales were between 1 April 1989 and 31 March 1993 for property in England, or between 1 April 2001 and 31 March 2005 for property in Wales.
https://www.theweek.co.uk/news/uk-news/956314/council-tax-rebate-how-do-i-get-150-refund How to get the £150 tax refund