Council Tax Benefit and cash gifts from family?

Hi

I am currently receiving council tax benefit on the basis that I have nil income.

I will be living off my savings for the next few months before I return to work and therefore the council have granted me the benefit because I have no income. I cannot claim Jobseekers allowance because I will not be actively looking for work until later in the year.

If my family give me a cash gift of £200/month towards my living expenses I presume this will not effect the benefit? The council do ask for bank statements to prove you have no income so they would see the money being paid in.

If you receive income support you automatically receive council tax benefit, and income support is more than £200/month, so I cannot see how this gift will make any difference...?

Please let me know if this is correct, Thanks

Comments

  • Alice_Holt
    Alice_Holt Posts: 5,902
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    Donations / Gifts are usually disregarded.

    See: http://www.manchester.gov.uk/info/200008/benefits_andamp_support/4276/the_money_we_count_when_we_work_out_housing_benefit_and_council_tax_support/3

    Check online with the info supplied by your council, as each Council Tax support scheme (which replaced CTB) is individual.
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • pmlindyloo
    pmlindyloo Posts: 13,049
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    Council tax reduction takes into account both income and savings so I am presuming that you have below £6000 in savings?

    Council tax reduction is quite difficult to get on the basis of nil income because they usually want to know why you are not claiming contribution based JSA (if you have been working and meet the NI contributions criteria) or income based JSA or Income Support (if you meet the criteria)

    It might help us to know why you are not claiming either (if you care to share)

    One of the reasons they ask is because they will suspect that you are receiving money from elsewhere (usually from working cash in hand)

    Having said all that you seem to have been awarded the council tax reduction so I am presuming that they are satisfied they you have no income.

    Generally 'gifts' are not taken into account but it is possible that they will investigate this money as they will initially see it as income and may investigate it further.

    General advice is not to have money paid into your account but to ask family to do an online shop for you/pay your bills directly without going through your bank account. Basically saves any benefit being suspended while they investigate.

    As I said, more information is needed of your circumstances for, perhaps, a better answer.
  • CIS
    CIS Posts: 12,260
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    One off small gifts are particularly an issue however once they become regular the lines between a gift and a regular income start to become blurred and the local authority may start to see it as undeclared income.

    Craig
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • skcollo
    skcollo Posts: 693 Forumite
    Get it in cash.
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