Disregarded person as Council Tax liable person

Magrew

If a disregarded person is the Council Tax account holder and doesn't pay any council tax but then has a low paid earner move into the property how should the Council Tax discount be calculated?

nannytone_2

there will be a non dependant deduction based on the amount the non liable person earns.
If you receive the care componant of dla or pip, no none deoendant deduction will be made

elmer

They will receive a bill for 75% of the charge as a Single Person Discount will be applied for the disregarded person.

In some councils you can still apply for a benefit called second adult rebate for these circumstances when the second adult is on a low income, but some abolished it when the changes to Council tax benefit were applied, its best to check with your council as benefit can only be backdated 6 months max.

hope this helps

elmer

Magrew

Thanks for the responses.

I have checked on the council's website and they have a calculator tool.

That tool calculates that their is a non-dependant discount of £35.40/week due to the fact that they are a low earner. The council though have only offered £5.80/week as a second adult rebate, the difference is £1500/year.

Why would they not be entitled to the larger discount?

elmer

The second adult is not a non dependant
A non dependant is someone who lives with the liable person who claims benefits.

The liable person in your scenario doesn't claim benefit, as they are disregarded. They will not be able to claim benefit as they have no liability for Council Tax.

They may be able to claim second adult rebate if their council still offers the benefit



elmer

Magrew

This is confusing.

I thought the liable person was the oldest adult in a household. If the oldest adult is disregarded, as in this case, then the only person liable for council tax is the second adult. They are also defined as a non-dependant aren't they?

Therefore the degree of council tax reduction should be based upon their earnings shouldn't it? It is only logical that the reduction is based on the earnings of the person liable fo the payment, or am I being stupid?

CIS

I thought the liable person was the oldest adult in a household

The liable person is the person who legislation decides receives the council tax demand notice (and is responsible for ensuring any charge due is paid).

(Generally speaking) If the disregarded person has the higher legal interest in the property then they are still liable for the council tax charge irrespective of the disregard.

Magrew

I this case the disregarded person receives the council tax demands.

Therefore the other adult must apply for second adult rebate I would have thought. But since the effective rebate for the "liable person" is 100%, then the reduction of discount (ie everything that they ask to be paid) is considered to be the amount that will be paid by that person. Therefore is it not logical that the ability to pay should be solely based on the second adults income?

Otherwise the addition of a second adult to the household has made a disregarded person (who is not liable for council tax) partially liable for council tax.

elmer

You are correct that
"the addition of a second adult to the household has made a disregarded person (who is not liable for council tax) partially liable for council tax."

Your relative is liable for a 75% bill as I mentioned in my first reply.

The age of the occupants has no bearing on liability, it depends on who owns the property. As I explained the person moving in is NOT a non dependant, they are an occupant.

They would only be a non dependant if the disregarded (liable)person already claimed Council Tax benefit, which as they don't have any liability for council tax as they are disregarded, they must not

It is also the disregarded person (i.e. the liable person) who applies for the Second Adult Rebate. Which if granted at the maximum will only reduce the charge to 50%, and as its means tested, may only reduce the 75% charge a little

Does the person who is moving in have to live there? As it will have a disproportionate effect on the Council Tax due?


elmer

Magrew

The other person is the son of the liable person, a non-dependant child, they are living there because their earnings are too low to afford a place of their own therefore living with a parent is a natural thing to do in that circumstance.

It was the disregarded person who applied for the second adult rebate and the calculator on the councils website gave two figures, one if the reduction was based on their circumstances and one if it was based on the second adult's income. The statement on the council's website said:

"Alternative Council Tax Support is often called Second Adult Rebate. It is based on the income of the non-dependants. The program calculates if you are better off with an award based on your circumstances or your non-dependants." This is a direct quote.

The council have chosen to use the figure that offers least benefit. This is why I am confused.

This is in Scotland if that makes a difference.

elmer

In these circumstances, your relative will receive a 75% bill for 1 occupant, the liable persons son.

They can make a claim for Second Adult Rebate, and should do so as soon as possible , it may be possible to download the form off the internet.

All claims have a "better off" calculation done as part of the process, so if circumstances dictate that a better payment can be made it should be flagged up when the claim is calculated.

The council don't make the rules, they are set by Government and all councils have to follow them.So your council can only apply the same rules as mine, and I work in Scotland too.

Good luck

elmer