Should council pay my father interest on 14 years worth of Council Tax overpayments?

tufc

Hi all,

Really really happy that my father has just received a letter to inform him that he his property has been rebanded froma D to a C backdated to 1993 - great news for him.

Not so happy that when he 'phoned his local council to ask when and how he would receive the repayment he was transferred through to the office manager who decided that he would try and provoke my father into an argument about the rights and wrongs of his repaymet.

Basically he opened the 'conversation' with the classic - 'I supose you are one of those people that has seen this on TV or in the papers aren't you?'.

He then asked my father why he didn't appeal within the first 6 months of the Band D award in the early 90s?

When my father quite rightly said that he and many others has a right to reclaim these overpayments + thet the council would have been quick enough to reclaim any monies owed if the boot had been on the other foot, he actually had the nerve to say that this whole situation was completely wrong + that he didn't think 'these people' should be able to claim these overpayments back!

Methinks that somebody is having a problem with the fact that they suddenly actually have quite a bit of work to do these days (a sackful of letters arrive at that small local council on a weekly basis with notice of reclaim of council tax overpayments apparently)

Sounds like my father actually stuck up for himself + acquitted himself very well on our behalf when faced with this beacon of Bristish red-tape so well done to him...

Now my question is re repayment of interest on these 14 years worth of council tax overpayments. When my father asked about interest on his reclaimed sum, he was told that individual taxpayers would not be receiving any interest on the sums that they had overpaid, but that business would receive interest on these sums. My father asked what was the distinction but was fobbed off by the manager...

Now not wanting to appear greedy he left it at that, but I wonder if anybody else has had any decision on the matter of interest on these overpayments, many of which run into the thousands of pounds over many years? Sure that the council would not just let it go if they felt that they were owed interest on any underpayments

Thanks for any advice that you can give me...

Academic

It isn't the council's responsibility to pay interest; they haven't made any mistake. Your father's council tax band was set by the VOA and the council merely charged him the appropriate rate. If any interest is due then this would be paid by the VOA, not the council. You (or your father) must contact them should you wish to pursue the matter.

I received interest from the VOA after my re-banding but it will depend upon the particular circumstances of your father's claim.

tufc

Thanks for that Academic...

One thing - should he approach the VOA with the question of interest on the overpayments now (before he receives the actual overpayment back) or do you think he should wait + see what he is actually awarded first (and whether they do add interest to that amount)?

Any advice that you could give would be much appreciated - you obviously got your interest added and am just cruious as to whether it was calculated automatically without you asking the question or not?

Academic

The VOA will not add interest automatically. If your father has grounds for requesting interest be paid on the amount owed then he should contact the VOA and they will consider his request.

I waited until I had received my repayment from my local council and then contacted the VOA. Whilst the VOA do have a duty to maintain an accurate Council Tax list I do not know what obligation they have to make interest payments. In my case they had re-banded my neighbours house (the other half of my semi-detached property) and hadn't made the required consequential change to my banding - this was an error on their part and I suspect this is why I was paid interest on my over payments. The VOA will make an appropriate decision based upon your father's situation.

You might want to spend some time reading through the Council Tax thread, it is rather large but there is some very good advice in there.

tarinilie

Academic wrote: »

It isn't the council's responsibility to pay interest; they haven't made any mistake. Your father's council tax band was set by the VOA and the council merely charged him the appropriate rate. If any interest is due then this would be paid by the VOA, not the council. You (or your father) must contact them should you wish to pursue the matter.

I received interest from the VOA after my re-banding but it will depend upon the particular circumstances of your father's claim.

If it isn't the council's responsibility to pay interest as it's not their mistake - why do they pay it for business rates when a reduction occurs??

I think they the council should pay interest as they've had use of the money for all those years!!

i'd chase the Council and the VOA and try to get 8% pa since 1993.
It is your money they've been keeping.

I think it's a cheek they don't pay it automatically!!

ilovemycats

Is it the VOA who hold the overpayments? If so, then they should be paying the gains that they made from those overpayments. If it is the council who were managing the money, then it should be the council who repays it.

All that is is just plain common sense. Sounds like the VOA decide the banding, yet the council manage the finances.

Academic

tarinilie wrote: »

I think they the council should pay interest as they've had use of the money for all those years!!

What you might think should happen isn't really important. As I understand the Local Government & Finance Act it isn't the council's responsibility; as I said earlier, they only act upon the information provided by the VOA. If tufc's father wants to spend his time chasing the council then that is his decision but I'd approach the VOA in a non-confrontational way and see what happens.

i'd chase the Council and the VOA and try to get 8% pa since 1993.

Why do you think 2 lots of interest would be paid ? It's a nice dream but its not going to happen......and where did the figure of 8% come from ??

I think it's a cheek they don't pay it automatically!!

I'd agree that it should be paid automatically if the error was clearly the fault of the VOA, but they would have to investigate the situation to determine if this was the case.

There is no point in basing any advice on what you think.

Academic

ilovemycats wrote: »

Is it the VOA who hold the overpayments? If so, then they should be paying the gains that they made from those overpayments. If it is the council who were managing the money, then it should be the council who repays it.

All that is is just plain common sense. Sounds like the VOA decide the banding, yet the council manage the finances.

Since when did common sense have anything to do with local government finance ?? If common sense prevailed we wouldn't have a council tax, we'd probably have some form of local income tax based on ability to pay but don't hold your breath and don't rely on common sense.

If you or tarinilie can explain to me, in detail, how I (or tufc's father) can make a claim against our respective councils I'd be very keen to hear from either of you. As things stand I know that, under certain circumstances, interest on over-payments can be obtained from the VOA as they have statutory obligations under the 1992 LG&F Act.

exil

Let me enlighten some people here. The council doesn't keep the tax money in a bank account earning interest.

tarinilie

Academic wrote: »

......and where did the figure of 8% come from ??



Statutory interest.
It's been 8% since 1993 and 15% pre then

tarinilie

Academic wrote: »

Why do you think 2 lots of interest would be paid ? .

I never said two lots of interest would be paid. I'm saying claim from all parties.
This is a common legal principle when applying for damages from multiple parties.
You would only be entitled to just damages ie one lot of 8% (statutory interest) : damages paid = damages suffered.