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Moved house - CT Benefit Overpayment will be recovered against CT account?

What does this mean exactly?

I moved house & they are saying they have overpaid me.

The letter states:

Period of Overpayment - 05 July 2012 to 05 Aug 2012 - £19.83
06 Aug 2012 to 31 Mar 2013 - £674.08

Total overpayment: £764.71

'764.71 will be recovered against your council tax account'.

Can anyone tell me what exactly this means? I have to pay this out of my own pocket?

Honestly, I am scared. I am disabled and DO NOT have money. :(

I am very confused. I mean, the 6th JUST passed. Could this mean that they just haven't recieved my new application yet & are saying that I have to pay my CT in full now?

I know it'd be best to call them but I'm just terrified. I'd love some info first so I can calm down enough to talk to them rationally.

Thank you.

Comments

  • marybelle01
    marybelle01 Posts: 2,101 Forumite
    When did you move house? This sounds like it may actually not be an actual overpayment, but is just an adjustment resulting from the closing of your old address on the claim. Because you wouldn't have received any payment from now until next March yet, so they haven't overpaid money that wasn't due!
  • I moved in on the 5th of August.

    I hope it's that, I'm a bit confused. :\
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 11 August 2012 at 1:51PM
    '764.71 will be recovered against your council tax account'.
    Any overpayment will be withdrawn from your council tax account at the property you were claiming for and you will then be billed for the council tax - bear in mind that as a closed account will result in any monies being due in 1 payment (namely anything that has been withdrawn for a period prior to you vacating the property).

    You wont owe the full balance of £764.71 though, for example:

    You are billed from 1 April 12 to 31 March 2013 and your council tax is £1200.00.

    You receive full council tax benefit of £1200.00.

    When you move out at the end of July 12 your council tax charge for the year is re-calculated as being £400.00.

    This means that £800.00 too much council tax benefit has been paid to your council tax account (for August 12 to March 13). This money is withdrawn directly from your council tax account and you are left with £400.00 council tax benefit against the £400.00 council tax charge - you don't physically have to pay the council any money.

    I am very confused. I mean, the 6th JUST passed. Could this mean that they just haven't received my new application yet & are saying that I have to pay my CT in full now?
    You need to make sure that your claim has been made for you new property - as far as council tax is concerned each property will be dealt with separately (and billed separately) so using the example I did above, if you still qualify for full council tax benefit the £800.00 taken off your old property would be given back to you at the new property. (its not quite a simple as that but it should give you the general idea).
    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.
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