Council Tax Overpayment To Self Employed Non-Dependant

Truegho

I was shocked to receive a letter from the council today claiming that I owe them over £451.04 Council Tax as a self-employed non-dependant, dating back June 2013. I started my online writing business from home on 1st June 2013, and even though I have only been earning, on average,, around £190.00 per month from my business, they are now saying I owe them all this money! I don't understand how they have arrived at this figure, so have queried it with them.

What I would like to ask you all is this: does a self-employed non-dependant still have to pay £3.75 per week towards the council tax (Band A property), no matter how low his income is? Our council tax is normally around £19.00 pwk, but since I started working for myself, that CT support has now been reduced to around £15.00 pwk.

I always assumed that if you were not yet earning a good profit from your business, you would pay no council tax at all.

Truegho

Further to my previous post, here is the amount of council tax that the council has demaded I pay pwk as a self employed non-dependant:

Eligible Council Tax - £19.25
Less Total Non Dependant Deductions - £3.74

So even if my writing business earns just £100 per month, does this mean I still have to pay this fixed amount? Surely this can't be right, can it?

pmlindyloo

Am a little confused, sorry.

Are you living with someone else and are their non dependent?

As a non dependent you are not liable for the council tax. The liable person, if claiming council tax support, will have this reduced if there is a non dependent person living with them.

The reduction is according to whatever 'bands' your local council uses (council have their own 'bands'.)

If you have shown an income of approx. £190 per week then google your council plus council tax support - non dependent deductions and the website should show how much the reduction is. The more the non dependent earns the more they pay.

They have apparently used an average of your yearly income to come to the decision.

if you are not a non dependent then please explain who lives with you.

Truegho

pmlindyloo wrote: »

Am a little confused, sorry.

Are you living with someone else and are their non dependent?

As a non dependent you are not liable for the council tax. The liable person, if claiming council tax support, will have this reduced if there is a non dependent person living with them.

The reduction is according to whatever 'bands' your local council uses (council have their own 'bands'.)

If you have shown an income of approx. £190 per week then google your council plus council tax support - non dependent deductions and the website should show how much the reduction is. The more the non dependent earns the more they pay.

They have apparently used an average of your yearly income to come to the decision.

if you are not a non dependent then please explain who lives with you.

Hi. Thanks for your reply. Sorry about the confusion. Let me elucidate.

I am living with my mum in her council house as a non-dependant. I started my own writing business in June 2013, and apart from one full-time temp job with the Civil Service (Feb 2015 to March 2015), I have had no other form of employment. I only earn, on average,, around £190.00 per month from my book sales, so surely the amount they are claiming I owe them is wrong.

I know that for Housing Benefit, they take into account how much you are earning, but for Council Tax, it seems to be a different kettle of fish, as they are now saying I need to pay £3.75 pwk, no matter how low my income is. I am really confused and, understandably, very annoyed.

pmlindyloo

Truegho wrote: »

Hi. Thanks for your reply. Sorry about the confusion. Let me elucidate.

I am living with my mum in her council house as a non-dependant. I started my own writing business in June 2013, and apart from one full-time temp job with the Civil Service (Feb 2015 to March 2015), I have had no other form of employment. I only earn, on average,, around £190.00 per month from my book sales, so surely the amount they are claiming I owe them is wrong.

I know that for Housing Benefit, they take into account how much you are earning, but for Council Tax, it seems to be a different kettle of fish, as they are now saying I need to pay £3.75 pwk, no matter how low my income is. I am really confused and, understandably, very annoyed.

Here is an example of the deductions for non dependents:

http://www.hackney.gov.uk/f-non-dependant-deductions.htm#.VUjXk_lViko

Since councils have been able to set their own council tax deductions very few people have not had to pay anything.

As I said, your mum is the liable person, not you. Non dependants are expected to contribute to the household. In this case since you are responsible for the overpayment then you should give your mum the money so that it can be repaid.

The letter should have been addressed to your mum as she is the one who has a liability to pay.

Truegho

Just checked this table of non-dependant deductions for council tax, and from what I can gather, even though I am still not earning over £188.00 pwk from my business, I still have to pay this rate of £3.74 pwk. Very depressing:

https://www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/help-with-your-council-tax-council-tax-reduction/how-your-council-tax-reduction-is-worked-out/council-tax-reduction-non-dependant-deductions-for-pensioners/

Truegho

pmlindyloo wrote: »

Here is an example of the deductions for non dependents:

http://www.hackney.gov.uk/f-non-dependant-deductions.htm#.VUjXk_lViko

Since councils have been able to set their own council tax deductions very few people have not had to pay anything.

As I said, your mum is the liable person, not you. Non dependants are expected to contribute to the household. In this case since you are responsible for the overpayment then you should give your mum the money so that it can be repaid.

The letter should have been addressed to your mum as she is the one who has a liability to pay.

Yes, the letter was actually addressed to my mum, she being the householder. I should have really checked my liability for council tax when I first started my business, but didn't because I automatically assumed that I would not be liable for any non-dependant payments if my business was still struggling to get off the ground and, as such, not earning very much.

pmlindyloo

Perhaps the time has come for you to reassess if your self employment is really viable. At the moment you would have a larger income if you were on JSA.

specialboy

Get a proper job and do you hobby in your spare time, this way you will be able to pay your way.

Housing_Benefit_Officer

My Local Authority works out self employed income for Council Tax Support by using the number of hours x National Minimum Wage for those self employed people who earn less per hour than the National Minimum Wage - has resulted in a big cut in help and higher non dep deductions.

It looks like you are having the minimum non dep deduction being taken - this would appear to be correct. Your Mother will need to make a payment arrangement and you will need to contribute towards the outstanding Council Tax.

Truegho

I was flabbergasted by your reply "Get a job". There are NO jobs in this area, the North West. This is the main reason why I was forced into self employment. If there were plenty of jobs here, I would have had a job by now. Not every part of the country is doing well in Cameron's wonderful "jobs booming" (laughs out loud) economy.

And if you still doubt my comments, then I'd suggest you come down here to Merseyside and spend a some time trying to find a job in the face of HUNDREDS of applicants chasing what few jobs there are.