Council Tax Reduction, then bill went up

Muffin2345

I got put on furlough in March, and as I was waiting for it to come through I applied for a council tax reduction, I am band A. I received a new council tax bill with a new amount to pay with nothing to pay until June, so in June I payed the amount they asked and same ones July, then in July I got another letter from them saying I was no longer eligible for a council tax reduction, I assumed that my bill would just have went back to the monthly amount that it was before the reduction, but they have added on all the amount the reduced my bill by and then divided it up by the months left to pay, I disputed it and was advised to pay £50 a month until I heard from them which I did, I recently got another new bill and again it still has all the shortfall on it as they have basically added everythin for the whole year on and expect me to pay it all in the next 3 months. I was back to work for 3 weeks and now I’m back off on furlough. I do not know what to do as I cannot afford to pay this amount and now I’m worried sick about it 

bradders1983

Surely it was explained to you that what you didnt pay would be added to payments later in the year, the arrears were never going to be written off. You need to speak to them again and make an arrangement.

Muffin2345

they never advised me that after a council Tax reduction that they could add it all on again afterwards. 

So for a example if someone doesn’t work most of the year and is only paying say £30 a month council tax then come December they get a job are they hit with a years bill with all their £30s they have paid been deducted only.
I was not aware the council could do this  

tacpot12

I'm sorry, but I know know whether this is the normal way that Council Tax Reduction works. But given that the CTR rules can be different in each authority, you may be better off asking the local Citizens Advice for specific advice about your local authority. This question would have been better asked on the Benefits & Tax Credits Forum. You might post a question there and link it to this thread.  

Jeremy535897

Read through https://www.turn2us.org.uk/Benefit-guides/Benefits-Overpayment/Council-tax-support-overpayments

MattMattMattUK

There are two things, one is a council tax reduction, the other is a council tax deferment. Some councils allowed people to defer paying their council tax for a few months, similar to a payment holiday, this obviously condenses payments into the remaining months. Some councils allowed a reduction in council tax, this applies for the months that the person meets the criteria, but there can be some oddities in the way the figures look because council tax is normally paid over 10 months not 12 and the two non-paying months are at the end of the year. 

Muffin2345 said:

I received a new council tax bill with a new amount to pay with nothing to pay until June

What I suspect has happened from what you have said there, is that they moved the non-paying months from February and March 2021 to April and May 2020. Without seeing the before and after council tax bills it is hard to tell and for privacy reasons you should not post pictures of them on here. Is the total payable due on both? Is there a pro-rata reduction?

I am also wondering if you claimed a reduction but were ineligible, they applied it originally, then realised their error and so the original amount was due. What was the basis on which you claimed for a reduction?

Muffin2345

MattMattMattUK said:

There are two things, one is a council tax reduction, the other is a council tax deferment. Some councils allowed people to defer paying their council tax for a few months, similar to a payment holiday, this obviously condenses payments into the remaining months. Some councils allowed a reduction in council tax, this applies for the months that the person meets the criteria, but there can be some oddities in the way the figures look because council tax is normally paid over 10 months not 12 and the two non-paying months are at the end of the year. 

Muffin2345 said:

I received a new council tax bill with a new amount to pay with nothing to pay until June

What I suspect has happened from what you have said there, is that they moved the non-paying months from February and March 2021 to April and May 2020. Without seeing the before and after council tax bills it is hard to tell and for privacy reasons you should not post pictures of them on here. Is the total payable due on both? Is there a pro-rata reduction?

I am also wondering if you claimed a reduction but were ineligible, they applied it originally, then realised their error and so the original amount was due. What was the basis on which you claimed for a reduction?

I received a reduction due to not working and had to wait till the furlough came thru, I applied for it as soon as I was out of a job in March, so they send me a reduced bill back then but now Iv gotten a higher bill again. I just didn’t think they was allowed to put your bill up

Muffin2345

tacpot12 said:

I'm sorry, but I know know whether this is the normal way that Council Tax Reduction works. But given that the CTR rules can be different in each authority, you may be better off asking the local Citizens Advice for specific advice about your local authority. This question would have been better asked on the Benefits & Tax Credits Forum. You might post a question there and link it to this thread.  

Thanks. I’m new to this I’m not really sure how to post the question on another forum and link it 🙃

pink_fluffy_sparkles

I would guess that it was more like a payment holiday, the the same was mortgages and finance are. You still have to pay the same amount over all but they gave you a couple of months off breathing space during furlough. They've not put the bill up, they've just had to divide the amount owed by less months now. 

Muffin2345 said:

tacpot12 said:

I'm sorry, but I know know whether this is the normal way that Council Tax Reduction works. But given that the CTR rules can be different in each authority, you may be better off asking the local Citizens Advice for specific advice about your local authority. This question would have been better asked on the Benefits & Tax Credits Forum. You might post a question there and link it to this thread.  

Thanks. I’m new to this I’m not really sure how to post the question on another forum and link it 🙃

One of the mods should be able to move this to another board for you  
 

[Deleted User]

Muffin2345 said:

MattMattMattUK said:

There are two things, one is a council tax reduction, the other is a council tax deferment. Some councils allowed people to defer paying their council tax for a few months, similar to a payment holiday, this obviously condenses payments into the remaining months. Some councils allowed a reduction in council tax, this applies for the months that the person meets the criteria, but there can be some oddities in the way the figures look because council tax is normally paid over 10 months not 12 and the two non-paying months are at the end of the year. 

Muffin2345 said:

I received a new council tax bill with a new amount to pay with nothing to pay until June

What I suspect has happened from what you have said there, is that they moved the non-paying months from February and March 2021 to April and May 2020. Without seeing the before and after council tax bills it is hard to tell and for privacy reasons you should not post pictures of them on here. Is the total payable due on both? Is there a pro-rata reduction?

I am also wondering if you claimed a reduction but were ineligible, they applied it originally, then realised their error and so the original amount was due. What was the basis on which you claimed for a reduction?

I received a reduction due to not working and had to wait till the furlough came thru, I applied for it as soon as I was out of a job in March, so they send me a reduced bill back then but now Iv gotten a higher bill again. I just didn’t think they was allowed to put your bill up

You don’t apply for furlough. Your employer claims it on your behalf. 

Muffin2345

bradders1983 said:

Surely it was explained to you that what you didnt pay would be added to payments later in the year, the arrears were never going to be written off. You need to speak to them again and make an arrangement.

No it was never explained to me at all that it would all be added on at the end and I don’t expect it to be written off.  I just didn’t think they was allowed to do that