Real Life MMD: Should I split the repayment?

Former_MSE_Lee

Money Moral Dilemma: Should I split the repayment?

Last year another student and I moved in with a non-student. As students, we were exempt from council tax and the employed girl got a 25% single person discount. I reluctantly agreed to split the bill three ways, although I couldn't afford it. When I finished my course, we lost my student discount and I was unemployed so instead I claimed council tax benefit. It finally arrived just as I started a full-time job. My employed housemate now thinks I should share the benefit with the student as her costs went up, but I regard the cash as mine.

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rose28454

How did the student's share of the Council Tax go up if she was not due to pay any? Confused. My son had a similar situation when he lived with 5 medical students in a flat in London. He was the only person working so paid the council tax with the 25% Single Tax taken off. After 2 years another working person moved in and they then aid it between them.
The students should not have been expected to pay any of the council tax as they were exempt and therefore the Council Tax Benefit should not be shared with them.

_nate

You've been kindly subsiding the council tax of your employed friend for a while. It is a bit rich for them to now suggest that you should split the benefit you received from the government because of your circumstances. Perhaps they would consider giving the student a better deal themselves if they are so keen for you to do this all of a sudden.

bogwart

Heads they win, tails you lose. Some people seem to want it every which way. She needs to learn how the world works, and that not everything is about her. In other words, put your foot down and say NO! You've already been more generous than you need to have been so she should consider this a cheap lesson in economics.

DurhamGrad

Your employed housemate has far too many opinions. There was no reason for you to subsidise her council tax payments when you were exempt, and now you're being expected to pay someone else's share out of money that you were legally entitled to?! Be firm and say NO! And in future, keep details re your finances to yourself if possible. She wouldn't have known about this late council tax benefit if you hadn't talked about it...

bennett2kuk

For starters I wouldn't have let anybody know anything I was doing money-wise. Then they wouldn't feel entitled to any money you may earn or in your case scrounge from the government.
Regardless you didn't have to pay for the council tax so you shouldn't have paid it, as such any benefit you claim on your own is your own. I would work out how much extra you paid as a result of paying for their council tax and demand this back.
If they're causing so much trouble as appears to be the case I would suggest moving out.

lowlitmemory

Easiest MMD we've had for a while!

You don't owe anybody any money, and furthermore, you should never have paid any council tax whilst you were a student. Your name should not even have appeared on the bills. If your mate insists that you now give her some of your benefits, then as someone said above, present her with a bill for HER council tax which YOU have been paying!

drewboy_2

Students are just as liable to a council tax bill as anyone else, its just that if the house is solely used by students there is nothing to pay.

If there is a bill because of someone in employment living there, then technically the students are liable to their share - and can be held liable if there is non payment.

The council tax benefit is given to cover council tax, and should be used for that purpose.

rose28454

drewboy wrote: »

Students are just as liable to a council tax bill as anyone else, its just that if the house is solely used by students there is nothing to pay.

If there is a bill because of someone in employment living there, then technically the students are liable to their share - and can be held liable if there is non payment.

The council tax benefit is given to cover council tax, and should be used for that purpose.

If there is a flat with 3 tenants and 2 are students then the bill is in the name of the person employed and the students are exempt. When my son paid in his flat is fellow housemates produced a letter from their universities to give to the council to get exemption. So technically the students are not liable as long as they produce a letter from Uni. I did a lot of research for my son when he lived there. Although it was Westminster City Council and they messed up the bills every year. In the end he had to go to their offices and seek out his councillor in order to sort it out

jon214

rose28454 wrote: »

If there is a flat with 3 tenants and 2 are students then the bill is in the name of the person employed and the students are exempt. When my son paid in his flat is fellow housemates produced a letter from their universities to give to the council to get exemption. So technically the students are not liable as long as they produce a letter from Uni. I did a lot of research for my son when he lived there. Although it was Westminster City Council and they messed up the bills every year. In the end he had to go to their offices and seek out his councillor in order to sort it out

Maybe the situation should also be considered from the point of view of the employed person:

If there are 3 tenants and all are employed then each pays 1 third of the bill, for example if council tax bill is £1000 - each pays £333.

However if 2 of the 3 tenants are students the bill will be reduced by 25% (as if there was only one tenant) this leaves the employed person paying 75% of the original bill, for example if the bill is £1000 the employed person would pay £750.

Surely it is unfair to expect the employed tenant to pay such a higher amount just because the other tennants are students.

Student exemption should only apply where all tennants are students.

joannedavidson80

I think your non-student flatmate is taking you and your other flatmate for a ride- as already stated she got a 25% discount as she was the only person liable to pay- her choice to live with students if she hadn't wanted to pay the 75% council tax for your flat she shouldn't have moved in with students.
On your current situation the backdated council tax was paid to you for council tax you've already paid and so you should keep it, but really you and your non-student flatmate should be splitting the council tax from now on and your student flatmate shouldn't be contributing as she isn't liable.

@bennett2kuk what land do you live in most students i know don't walk into employment immediately on graduation- if you read the dilemma carefully you would see she is now working full time and paying taxes- repaying any benefits she received for the short time she was unemployed- thats what we pay taxes for so that there's money there when we need it!