Question Of The Week: Council Tax Error

Former_MSE_Penelope · 4 May 2010 at 4:09PM

Q. As a nursing student I was given a 25% council tax discount. At the end of my course I telephoned the council and told them I was to start work. Two years later they wrote stating I owe them for2 yrs discount as they'd continued to allocate the reduction. It's their error not mine – what do I do? Pauline.

Martin's A: Actually as a student you don't need pay council tax, so I presume you live with a partner and thus what actually happened is as you didn't count for the tax, they got the single person discount (see the council tax guide).

Yet the nub is you told them and they didn't act. There's arguments both ways. So I'd write to the council saying you believe you've been unfairly treated. If they reject then put a complaint in to the local council ombudsman. While it can't rule on council tax levels, or whether you're entitled to discounts it can look at how your council's dealt with your council tax, which is exactly the problem here.

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afrance · 5 May 2010 at 11:45AM

I have to say that I've been singularly unimpressed by the way that local councils handle benefits / rebates. For example, I own a small property which has been quite often used by people on housing benefit. The councils are keen to pay such benefits directly to the landlords rather than the tenants - ostensibly because it makes sure that the landlord gets the money, it doesn't burn a hole in the tenants pockets and they have less problem with homelessness as a result. As it happens I've never evicted anyone for non-payment of rent, but that's not important. Anyway, in one case, long after the tenant left the property and moved somewhere else, the council decided that they had been paying too much housing benefit, and they wanted to claim it back. Guess what - because they had paid the benefit to the landlord they have the right (apparently) to claim it back from the landlord. Because (apparently) this is what the law says the ombudsman apparently has no voice. You can be sure that this particular social (but private sector) landlord will never accept direct housing benefit payments from that particular local authority again. My local councillor told me how atrocious it was, but despite the fact that her party were in power in the authority wouldn't take up the issue. You start wondering what the point is... I know HMRC have their issues as well!

sarahsqj · 5 May 2010 at 1:13PM

I work for the revenues department in a local council, and situations like yours happen more often than you think.

When you say that you're being asked for the money back is that because you continued to receive the 25% reduction for 2 years after your course finished? If this is the case the council tend not to be lenient in changing their mind. As a council tax payer you would receive a bill every year to advise you how much council tax you were due to pay, on this bill it also says what discounts you get. From their position you should have alerted them (again) to the fact that you were still receiving the 25% reduction. As you didn't they now, annoyingly, are well within their rights to demand the money from you.

You can contact your local council over the phone and speak to an adviser, they should have a record of you alerting them that you were no longer eligible for the 25% reduction and you can use this evidence to support your complaint. Unfortunately you will probably still have to pay the money; its incredibly rare that they will write off this off. In which case speak to the adviser about the options you have for spreading out the debt over this year, or else, if you write in to complain, see if they can spread the debt over a couple of years.

I had a case where an elderly couple had been charged to 25% reduction for 7 years incorrectly (it amounted to a couple of thousand pounds and the council demanded the full amount back from them by the end of that council tax year (3 months away).

I know its not particularly nice to hear, but I hope that gives you some idea of what might happen.

CIS · 5 May 2010 at 3:05PM

I agree with sarahsqj as I also work in a council tax dept, primarily dealing with recovery of non-paid council tax.

The duty lies with the council tax payer to ensure that they are paying the correct amount and as has already been pointed out the demand notices show clearly that a discount has been awarded. In addition the start of year notices will also include a booklet giving a summary of discounts available.

There was a delay in local authority removing the discount so they may be more willing to accept a longer term arrangement on the arrears without obtaining a liability order first but that would depend on the authority and how willing they are to accept an arrangement without first gaining a Liability Order.

I would guess that the outstanding balance with be in region of £500-£600 and so they may be willing to spread it over the balance of this year or , if you are lucky, spread it over this year next year.

Question Of The Week: Council Tax Error

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