Martin Lewis warns 400,000 households paying wrong council tax with Britons entitled to rebate worth thousands

He argued: "Up to 400,000 in England and Scotland are in the wrong council tax band. If so, you may be entitled to a backdated rebate of £1,000s and a lower band."

The statement comes as council tax is set to rise by five percent for millions of Brits from April 1, meaning if Lewis’ argument is right, it is crucial you make sure you are paying the correct amount.

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To make the matter easier, the financial guru detailed a step-by-step guide on how to check you are in the correct band, and how to challenge it if you believe you are in the wrong category.

First and foremost, the financial expert stressed the importance of checking what your neighbour pays.

If your neighbour is in a lower band than you, Lewis argues that you may have enough evidence for a claim.

However, he did warn that this is something you shouldn’t do without checks, including evaluating how much your property was worth in 1991.

He stressed the importance of using a Valuation Check to see whether your band is too high or your neighbours' band is too low.

He recommended websites such as Zoopla and Rightmove that offer free historic sales price information to accurately evaluate your property.

Lewis explained: "You can't just ask for your band to be lowered – only for a 'reassessment', which means it could be moved up or down, so this is why it is really important to do the checks before submitting.

"It's even possible that your neighbours' band could be increased, although this is rare,“ he added.

The finance guru had one main take home message for his viewers and that was: "If you're convinced your property band is unfair, it's time to challenge it."