Council Tax Benefit

sorcerer

I live in a house with 3 other adults all relatives, I am not the owner of the property, but the owner wants to try to claim for a reduction in council tax, but they council want to know what my wages are from my job, why do they want this when I am not the one paying the bill.

If my wages are too high would I be expected to pay the whole amount, or would people on lower wages get a discount.

Thanks for you help..

fluffymovie

A deduction is made from the claimants benefit. The level depends on your gross income.

CIS

If my wages are too high would I be expected to pay the whole amount, or would people on lower wages get a discount

You aren't liable for any council tax - the resident owner is.

sorcerer

So why do they want to know how much money I earn.

Wee_Willy_Harris

Because, depending upon your income, they will assume it reasonable for you to be making a financial contribution towards the household expenses (lodge money). As such, the public purse can reduce what it needs to pay as it would be unfair to expect the same payment twice. Look up "non dependent deductions". If you don't tell them, they may assume your wage to be at the top of the scale and deduct benefit accordingly.

sorcerer

So if two people are retired one is on low wage and the other is on a good wage, would it fall on the person with a good wage to pay the entire council tax (even if they don't own the property), or would they take into consideration the other people are on low income.

CIS

So if two people are retired one is on low wage and the other is on a good wage, would it fall on the person with a good wage to pay the entire council tax (even if they don't own the property), or would they take into consideration the other people are on low income.

Council Tax liability is separate to council tax benefit - council tax benefit can help people pay but doesn't decide who is responsible for paying.

As a quick (and simplified) level - the person who is liable to pay council tax falls on the resident owner, if there's not one then it falls on the resident tenant. If there is more than 1 resident owner or 1 resident tenant then they are jointly liable.

e.g

Owner and partner live in a property - both are jointly liable.

They are joined by a lodger - the resident owners have a higher interest than the lodger so they remain liable for the council tax.

The owners move and the lodger takes the tenancy - the tenant is now liable.

The tenant moves a friend in to stay - the tenant is still liable as he has the higher interest in the property,

The friend becomes a joint tenant - both the tenants are now jointly liable.


Anyone who has a council tax liability that they are responsible for can claim council tax benefit - if they are joint tenants then they would get council tax benefit only on a % - e.g 2 joint tenants would claim up to 50% each on their own incomes, 3 tenants up to 33% each on their own incomes. If the occupiers are a couple then they claim for 100% but all of their joint income is taken in to account.

sorcerer

So the bill could be split 4 ways, for a household of 4, so I would pay 25% for example, because I am not liable, however the tenants are married so they are 50% liable, and the fourth person makes up the other 25%, is that correct?

What happens if I earn a lot more then everybody else, am I more liable to pay even thought I don't own the house. For example would they expect me to pay more than 25%?

Beetlemama

No, the council tax is set to the name of the person with the greatest interest in the property, see the Liability Ladder as detailed by CIS - the people who own it and live there are liable, however, if they are retired or on low wages, they may claim council tax benefit, the amount of benefit they can claim is decided by their income and the income of any other resident party over 18, so for example, if the the property is occupied by two people and their two adult children, but the parents are both pensioners on pension credit, they will assess the earned income of the "kids" to see what contribution they are making to the household to decide how much benefit the parents are entitled too.

You do not have to declare your income but it will affect their claim if you don't.