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  • FIRST POST
    • textbook
    • By textbook 4th Jan 18, 12:20 AM
    • 146Posts
    • 16Thanks
    textbook
    Reduced Council Tax if on Tax Credits
    • #1
    • 4th Jan 18, 12:20 AM
    Reduced Council Tax if on Tax Credits 4th Jan 18 at 12:20 AM
    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?
Page 1
    • marliepanda
    • By marliepanda 4th Jan 18, 1:06 AM
    • 6,070 Posts
    • 12,910 Thanks
    marliepanda
    • #2
    • 4th Jan 18, 1:06 AM
    • #2
    • 4th Jan 18, 1:06 AM
    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?
    Originally posted by textbook
    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. Iím 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
    • By Afraid of Kittens 4th Jan 18, 3:29 PM
    • 76 Posts
    • 72 Thanks
    Afraid of Kittens
    • #3
    • 4th Jan 18, 3:29 PM
    • #3
    • 4th Jan 18, 3:29 PM
    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
    • By textbook 22nd Jan 18, 9:58 AM
    • 146 Posts
    • 16 Thanks
    textbook
    • #4
    • 22nd Jan 18, 9:58 AM
    • #4
    • 22nd Jan 18, 9:58 AM
    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.
    Originally posted by Afraid of Kittens

    They did say you have to open yo ur books to them- so I guess my tax return figure?
    • Afraid of Kittens
    • By Afraid of Kittens 22nd Jan 18, 6:20 PM
    • 76 Posts
    • 72 Thanks
    Afraid of Kittens
    • #5
    • 22nd Jan 18, 6:20 PM
    • #5
    • 22nd Jan 18, 6:20 PM
    They did say you have to open yo ur books to them- so I guess my tax return figure?
    Originally posted by textbook
    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
    • By textbook 28th Feb 18, 1:53 PM
    • 146 Posts
    • 16 Thanks
    textbook
    • #6
    • 28th Feb 18, 1:53 PM
    • #6
    • 28th Feb 18, 1:53 PM
    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
    • By marliepanda 28th Feb 18, 1:57 PM
    • 6,070 Posts
    • 12,910 Thanks
    marliepanda
    • #7
    • 28th Feb 18, 1:57 PM
    • #7
    • 28th Feb 18, 1:57 PM
    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?
    Originally posted by textbook
    I don't think an excel spreadsheet will be sufficient.
    • textbook
    • By textbook 28th Feb 18, 2:52 PM
    • 146 Posts
    • 16 Thanks
    textbook
    • #8
    • 28th Feb 18, 2:52 PM
    • #8
    • 28th Feb 18, 2:52 PM
    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
    • By Dandytf 28th Feb 18, 4:05 PM
    • 1,348 Posts
    • 421 Thanks
    Dandytf
    • #9
    • 28th Feb 18, 4:05 PM
    • #9
    • 28th Feb 18, 4:05 PM
    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,
    sc dmp 2012 13k Jan 2018 8840 paid. 60% approx.
    Mid 2018 Help2save 50 uk pounds per month
    Mid 2018-Virgin Money E-saver V11 -250+50 uk pounds per month
    • textbook
    • By textbook 5th Mar 18, 7:52 AM
    • 146 Posts
    • 16 Thanks
    textbook
    Is tax credits one of the mentioned benefits?
    • Dandytf
    • By Dandytf 6th Mar 18, 12:17 PM
    • 1,348 Posts
    • 421 Thanks
    Dandytf
    Is tax credits one of the mentioned benefits?
    Originally posted by textbook
    Best you check maybe online with your local council though type google search council tax reduction and your council name.
    Iím not sure if W.T.C is enough eligibility as my claim is via PIP/Disability element.
    sc dmp 2012 13k Jan 2018 8840 paid. 60% approx.
    Mid 2018 Help2save 50 uk pounds per month
    Mid 2018-Virgin Money E-saver V11 -250+50 uk pounds per month
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