Do I have to declare tax rebate on housing benefit

legricea

Hi all,

I’ve just been paid over £900 by HMRC in a tax rebate and I’m wondering whether this is something I have to declare as I receive housing benefit and council tax benefit (I’m guessing yes but wanted to make sure).

complicating it is that I’m about to end both claims as I’m moving at end of October so I could simply end the claim early and pay my final rent out of rebate.

sammyjammy

As long as your savings/capital remains under £6000 you don't need to inform them

KatrinaWaves

sammyjammy said:

As long as your savings/capital remains under £6000 you don't need to inform them

will this def count as capital and not income? Its a rebate of income tax?

pmlindyloo

Just to put your mind at rest - - it is treated as capital.

Income treated as capital
Tax refunds
W1.630 Any refund of income tax charged under Schedule D or E should be treated as capital.
Schedules D and E cover tax on HB Reg 46; CTB Reg 36 •
profits of a business
 • interest on capital or an annuity
 • an employed-earner’s earnings (Pay As You Earn)
Example
 A claimant’s partner’s take-home pay of £104 includes a PAYE tax refund of £21. Treat the claimant as having • earnings in that week of £83, and • capital of £21

calcotti

KatrinaWaves said:

sammyjammy said:

As long as your savings/capital remains under £6000 you don't need to inform them

will this def count as capital and not income? Its a rebate of income tax?

Tax rebates are treated as capital in legacy benefits. UC changes the rules so that they are treated as earnings (unfairly and without justification in my opinion).