Council Tax Benefit & Audited Accounts

Mrs_Wilson

Recently my local authority asked me to produce audited accounts for my last tax year as I am self-employed. Audited accounting is very expensive so say the least and it would be pointless me paying for an accountant to perform such a task as I do not buy materials, and rarely claim expenses back, my income is simply paid into my bank account......and not forgetting I am on a low income so I could not afford it.
I was awarded CTB due to low income over 18 months ago and qualified due to the information that I provided (not audited accounts) and the fact I claim working tax credits. Out of the blue I get a letter making request for audited accounts?!

Has anyone else been asked to do the same and what should I do? :eek:

Thanks

Housing_Benefit_Officer

Most Local Authorities have a self employed form such as this one:-

http://www.uttlesford.gov.uk/uttlesford/file/Self_employed_earnings_form_web_03_13.pdf

Explain you don't have audited accounts and if they have a self employed form for your to complete.

Mrs_Wilson

Thank you for that - I was thinking of making an appeal against their request because they were perfectly satisfied with my renewal application only a few months ago. All of a sudden they appear to need further verification to support my claim? I don't think they have clue what audited accounts really are......they most probably would not recognise them if they were pushed under their noses.
Anybody think I have grounds for an appeal based on them making an unreasonable request?

Housing_Benefit_Officer

Mrs_Wilson wrote: »

Thank you for that - I was thinking of making an appeal against their request because they were perfectly satisfied with my renewal application only a few months ago. All of a sudden they appear to need further verification to support my claim? I don't think they have clue what audited accounts really are......they most probably would not recognise them if they were pushed under their noses.
Anybody think I have grounds for an appeal based on them making an unreasonable request?

You can only appeal against a decision not a request for information.

Phone and ask to speak to a supervisor and explain you can't afford to get your accounts audited. Explain you can provide a statement showing your income and expenditure or you can turn up with a box or receipts fr the council to audit. Try and find out what they want and why and if you can't supply exactly what they want (audited accounts) and what information you can supply to satisfy what they want.

I always ask for audited accounts and if unavailable to complete an income and expenditure form.

Have you put down accountants fees as an expense? If you have then that could be why they are asking for audited accounts.

bigboybrother

Mrs_Wilson wrote: »

they most probably would not recognise them if they were pushed under their noses.

I would imagine they do!

You see a set of audited accounts simply means that a professionally qualified accountant has gone through your records and has prepared and audited them and certifies them as being " a true and accurate representation on the trading activities of your business"

In other words they don't come on the back of a fag packet!

Who would you expect the council to believe - you or a Chartered Accountant?

MacMickster

Professionally prepared accounts are very different from audited accounts. Most accountants are not qualified to carry out a formal audit, which is an expensive process, and would almost certainly cost more than the amount of any council tax benefit received.

A business is not required to have their accounts audited if they meet 2 out of the following 3 conditions:

1. An annual turnover of not more than £6.5 million;
2. A balance sheet total of not more than £3.26 million;
and
3. That the company qualifies as a small company in relation to a particular financial year (currently 50 employees or less).

I suspect that the council officer(s) requesting this don't know the meaning of "audited accounts" and simply mean financial accounts.

I very much doubt that a council would have qualified staff who would carry out an audit if you turned up at their offices with your business books and records, but if so I would certainly take them up on their very generous offer.

fluffymovie

I think the issue is that when HB assessors received training years ago, just asking for accounts didnt' sound right and so we were all told it was audited accounts that were needed. As MacMickster says, unless your company has a large turnover, audited are not required.

What we need to see to establish your net income is either accounts if you have an accountant, or your own if you keep them on a spreadsheet or date book.

If you don't have these, then you may be asked to complete a self employed form (in my LA, we ask for this in all cases as it sets out your expenditure in a way that we find easy to understand because we aren't accountants!)

Self employed claims can be involved and complicated to assess as every business is different and most officers have a large number of different types of claim to assess so they do their very best.

We do have people bring us every receipt and invoice but our job is not to calculate accounts but process benefit based on what you declare as income and expenditure.

As others have said, you can't appeal against a request for information but a decision. If your claim was suspended because you failed to provide the accounts, then that would be something you can appeal against but otherwise no.