Reduced Council Tax if on Tax Credits

textbook

If you're on tax credits I heard youo can get reduced council tax. how do you go about that. Doing tax return and heard from council you have to open your books to them. What does that mean? What info do you have to show them?

marliepanda

textbook wrote: »

If you're on tax credits I heard youo can get reduced council tax. how do you go about that. Doing tax return and heard from council you have to open your books to them. What does that mean? What info do you have to show them?

council tax reduction is for those on a low income, which may or may not tally with tax credit income (im not a tax credit expert but I believe CTR income cut off is much lower)

To get CTR you will need to show your income and your capital. I’m assuming from your post you are self employed. At my council they have a self certificate of trading that you would have to fill in showing your profit for periods that they will inform you if.

Afraid_of_Kittens

Tax Credits are treated as income. Also many council's will assume a 'minimum wage' income if your self employed income is low. They use different disregards of business expenses than HMRC.

textbook

Afraid_of_Kittens wrote: »

Tax Credits are treated as income. Also many council's will assume a 'minimum wage' income if your self employed income is low. They use different disregards of business expenses than HMRC.

They did say you have to open yo ur books to them- so I guess my tax return figure?

Afraid_of_Kittens

textbook wrote: »

They did say you have to open yo ur books to them- so I guess my tax return figure?

No. They won't use your tax return figure because some business expenses allowed by the tax man are not allowed under housing benefit legislation. They will need to see your accounts showing the different types of income and expenditure.

Also your Tax Credits are treated as income.

textbook

So will need to show them a breakdown from say Excel showing money coming in and money going out 'expenses'? If the accounts aren't done very well would they report u to HMRC?

marliepanda

textbook wrote: »

So will need to show them a breakdown from say Excel showing money coming in and money going out 'expenses'? If the accounts aren't done very well would they report u to HMRC?

I don't think an excel spreadsheet will be sufficient.

textbook

Basically put into that entitled to calculator was claiming £115 month tax credits earned £10,000 for 2016/2017 PAYEE and self employed then put predicted income for self employed in 2017/2018 of £7000. Said not entitled to any council tax discount. Currently pay £77 month council tax. lowest band. Not sure if inputted all the correct data though. Worth calling the council and chatting to someone in person?

Dandytf

11 or 11.5k is minimum wages for council tax reduction
If you are one of the mentioned benefits/pip/etc etc...
I qualified this year as moved to part time from full time.
Awaiting discount to be applied from 2018-2019 councilman tax
Though did receive a small reduction for a few months which was applied,

textbook

Is tax credits one of the mentioned benefits?

Dandytf

textbook wrote: »

Is tax credits one of the mentioned benefits?

Best you check maybe online with your local council though type google search council tax reduction and your council name.
I’m not sure if W.T.C is enough eligibility as my claim is via PIP/Disability element.