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Council Tax Enquiry

My son lives in my house in the UK and for a while lived there alone. He claimed the single person's council tax reduction.

Then he became unemployed and couldn't afford to pay all the bills. So I installed two lodgers. Their rent comes to me and pays most of the bills. My son has none of the lodgers' money but does pay some of the bills out of his Jobseekers' Allowance.

Last time he had to fill in a form for Council Tax Benefit (which he gets because he's unemployed), he wasn't sure what to put, so he explained the situation to his advisor at the Jobcentre (i.e. that he gets no money from the lodgers) and she told him to put that he lives alone, - based on the fact that he has no income from the lodgers - otherwise it may affect his Council Tax.

Does this seem right to you?
(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton

Comments

  • My son lives in my house in the UK and for a while lived there alone. He claimed the single person's council tax reduction.

    Then he became unemployed and couldn't afford to pay all the bills. So I installed two lodgers. Their rent comes to me and pays most of the bills. My son has none of the lodgers' money but does pay some of the bills out of his Jobseekers' Allowance.

    Last time he had to fill in a form for Council Tax Benefit (which he gets because he's unemployed), he wasn't sure what to put, so he explained the situation to his advisor at the Jobcentre (i.e. that he gets no money from the lodgers) and she told him to put that he lives alone, - based on the fact that he has no income from the lodgers - otherwise it may affect his Council Tax.

    Does this seem right to you?

    It's not right. Because he doesn't live alone he shouldn't be getting the discount. The council tax department need to know, as well as the benefit department. It is fraudulent to be claiming to live alone if claiming benefits, if found out he could be asked to pay it all back.

    People at the job centre shouldn't really be advising on council tax benefit or housing benefit as it is a very complex thing where the legislation and regulations change all the time. They should be referring the people to the local council for accurate advice.

    Only thing I do need to say is that he probably won't get full council tax benefit as he isn't living there alone.

    Hope this makes sense, PM me if it doesn't.
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  • missk_ensington
    missk_ensington Posts: 1,590 Forumite
    You have to pay the full Council Tax amount, and either you have to pay it from the rent you get, or the lodgers split it, with your son making a contribution.

    I am in similar situation, I am full time student and thus 100% exempt, and thinking of taking in a lodger who is working. Therefore we'd have to pay Council Tax with just 25% discount (for me) and that makes it difficult to find a lodger because they don't want to pay £70-80 a month on top of their rent and utilities!
  • seven-day-weekend
    seven-day-weekend Posts: 36,755 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Thought we would probably have to pay it! Someone is coming to see him about it at the end of the month and he can explain the change in situation (only a recent change).

    Thanks for your advice.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
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