Income tax should be regarded for housing benefit?

romanokun

Hello. I want to ask if at the beginning of tax year income tax was refunded for the previous year of more than 1000 pounds should I say this to Council for Housing Benefit/Council Tax Support purposes? After that they should take this into account and award less benefit for the past year that they actually paid, so they need to put an huge overpayment, don't they and I need to give them back? Am I right? As they count net income where tax is deducted from the income.

So huge tax refund turn out as when a person was working as sole trader under CIS no personal allowance was regarded during the year (20% was deducted every week, month from all the sum). At the end all the taxes were refunded

enabledebra

romanokun wrote: »

Hello. I want to ask if at the beginning of tax year income tax was refunded for the previous year of more than 1000 pounds should I say this to Council for Housing Benefit/Council Tax Support purposes? After that they should take this into account and award less benefit for the past year that they actually paid, so they need to put an huge overpayment, don't they and I need to give them back? Am I right? As they count net income where tax is deducted from the income.

So huge tax refund turn out as when a person was working as sole trader under CIS no personal allowance was regarded during the year (20% was deducted every week, month from all the sum). At the end all the taxes were refunded

Tax refunds are counted as capital not income so unless it takes your capital over £6000 it won't affect your housing benefit entitlement.