The John Healey council tax error has attracted national attention, not simply because it involved a Cabinet minister, but because it highlights how council tax billing mistakes can happen when new rules are introduced.

Reports confirmed that a council tax notice issued by Westminster City Council did not correctly apply the second-home surcharge, leading to an underpayment of around £1,500. The council later accepted responsibility for the administrative error, apologised, and the shortfall was paid.

But beyond the headlines, this story raises an important question:

How do second-home council tax surcharges actually work? And what should you do if your council tax notice is wrong?

Let’s break it down clearly.

What Happened in the John Healey Council Tax Error?

• A new second-home council tax surcharge came into effect.

• The billing notice sent out did not include the correct surcharge.

• The underpayment was later identified.

• The council acknowledged the mistake and corrected it.

The error was administrative, not an attempt to avoid payment. Many property owners assume council tax bills are always correct. The reality is that billing errors can happen, especially when new policies are introduced or systems are updated.

How the Second Home Council Tax Surcharge Works

Across England, councils now have greater powers to apply a premium on second homes, also known as the second home council tax surcharge. What it includes:

• If a property is not your main residence, it may be classed as a second home.

• Local authorities can apply an additional percentage on top of the standard council tax band.

• The exact rate depends on the council’s policy.

Each local authority, including Westminster City Council, publishes its own guidance. The surcharge is usually added automatically to the annual council tax notice.

However, classification errors like John Healey council tax error can occur if:

• The property status is recorded incorrectly.

• Ownership details change.

• A system update fails to apply the surcharge properly.

• A billing adjustment overlaps with policy changes.

Why Council Tax Billing Errors Happen

Local authorities process thousands of council tax accounts. When new surcharges or policy updates are introduced, billing systems need to be updated and property classifications reviewed.

Common reasons for a council tax billing error include:

• Incorrect second-home classification

• Delayed update in council systems

• Human data entry mistakes

• Changes in ownership were not recorded correctly

• System updates when new financial years begin

Even small errors can lead to either overpaid or underpaid council tax. So what should be the takeaway from the John Healey council tax error? Always check your council tax notice carefully.

What To Do If Your Council Tax Notice Is Wrong

First of all, you need to ensure that you follow the right steps:

1. Check the breakdown

Review your council tax notice by confirming:

• The correct property address

• The correct council tax band

• Whether a second home surcharge has been applied

• The total annual liability

2. Compare with council guidance

Visit your local authority website and read the section on:

• Second home premium

• Council tax exemptions

• Discounts and surcharges

3. Contact the billing department

Email or call your council’s council tax team. Provide:

• Your account number

• A copy of the notice

• A short explanation of the issue

Here’s a tip: Keep all correspondence in writing where possible.

4. Pay what is clearly due

If part of the bill is correct, it is often sensible to continue paying the undisputed portion to avoid penalties whilst the dispute is reviewed.

5. Request written confirmation

If the council confirms a billing error, ask for written confirmation and an updated statement showing the correct council tax amount.

Are Landlords and Investors Responsible?

Yes, the council tax responsibility depends on:

• The tenancy agreement

• Whether the property is occupied

• Whether it is classed as a second home

• Whether it qualifies as an HMO

If a rental property is empty or used occasionally, it may trigger a second-home surcharge depending on council rules.

Landlords should regularly check:

• Council tax banding

• Surcharge status

• Liability periods

• Billing adjustments during void periods

Even where tenants normally pay council tax, owners remain responsible for ensuring records are accurate.

Can Councils Backdate a Second-Home Surcharge?

Yes. If a billing error is discovered, a council can correct the account and apply the appropriate surcharge retrospectively.

That is why reviewing each annual council tax notice matters. Mistakes, whether related to overpayments or underpayments, can arise later.

Lessons From the John Healey Council Tax Error

In many experts’ opinions, this case is less about politics and more about process.

The key lessons should be:

• Do not assume your council tax notice is automatically correct.

• Understand how second home council tax rules apply in your borough.

• Keep records of property status and correspondence.

• Act quickly if something looks wrong.

How Cribs Estates Supports Property Owners

Council tax rules, second-home classifications, and local authority processes can be confusing, especially when policies change.

At Cribs Estates, we support landlords and property owners with:

• Clear guidance on council tax liability

• Advice on second-home implications

• Compliance checks before letting

• Support where local authority clarification is required

Don’t leave your taxes to assumptions. Book a free consultation today.