Advice on suspected fraud!

Vedrina

Hopefully this thread is in the right area, I'm seeking advice in relation to a potential problem.

I live in a private flat and I currently sleep on the sofa (I previously rented a room), my live out Landlord moved into the Flat in January as they'd lost his job. Consequently I had to surrender my room although I got a reduced rate on rent.

I have recently come to the realisation that the Landlord is not paying the appropriate rate of council tax as stated in my lodger agreement. If I were to report them would I be liable to pay any Council Tax that they should have paid? I think they may also be claiming others benefits illegally and I would report this at the same time e.t.c. Morally I know it's the right thing to do and this isn't a question of my morality, but a simple request for advice as I will report the person either way.

tomtontom

More information needed - is he failing to declare you live there? What other benefits do you think he is claiming illegally?

dippy3103

There is a hierarchy of occupants for council tax liability purposes.

If you have given up your room, how many people live there?

Either he gets an SPD (which he's not entitled to) or he doesn't.

Vedrina

tomtontom wrote: »

More information needed - is he failing to declare you live there? What other benefits do you think he is claiming illegally?

Basically I saw some letters that were left laying around which show he is claiming benefits for the whole amount related to the council tax so he's obviously not paying it. On another occasion very recently he also told me that the Job centre don't know we're living there (i.e paying rent). The people living in the flat are me a flatmate and the landlord, the flat only has two bedrooms.

The council knows that me and my flatmate live there because we're on the electoral roll e.t.c.

dippy3103

You may be on gone electoral role but it's only a snap shot of the on which the form is completed.

If he's getting full CTRS then it's probable the benefits service don't know you are there.

As for who would be liable it depends on what's on your tenancy agreement.

Vedrina

The lodgers agreement says-

4. Rent

The rent is £300 per calendar month paid monthly in advance. The first payment will be paid on the start date and the subsequent payments will be paid on the same date of each calendar month thereafter. Should the Lodger fail to pay the rent the Landlord may serve upon them a notice for payment/removal or apply to court for payment/removal.

5. Council tax and utilities

Council tax and utilities are included in the monthly rent.

BigAunty

How long were you in the property for before he returned? Did you have a lodgers agreement from the outset or just when he came back?

Its easy to dob someone in for benefits fraud - there's a hotline but they get so many reports that only a small fraction are investigated but so many are vague/malicious that perhaps the fact that you can supply full info will help.

Its also easy to dob someone in for tax fraud - same applies to the high reports versus small number of investigations. If he didn't change over the bills/council tax into your names when he left, then that could be a sign that he is trying to conceal being a landlord.

Income in the form of rent does affect means tested benefits like Council tax benefit but Job Seekers Allowance can be contributions based for the first 6 months, meaning that it ignores their income in this period before it then switches to an income (i.e. means tested one). This means if he has paid tax for the previous two tax years, he can legitimately get rental income and Job Seekers Allowance without a conflict for 6 months. This isn't the case with the council tax - you can contact the local department.

What I think is a great shame is that if you and the other occupant stayed there on your own without the landlord living there, you were tenants and not lodgers. Tenants have greater rights and security. You could have refused for him to move back in if you were actually tenants. If this is the case, it appears you didn't know that you had legal protection against this sort of thing. Speak to Shelter about your options and rights - they give expert advice to tenants/lodgers.