Council Tax Exemption backpayment and ESA
gray1404
Posts: 88 Forumite
A family member of mine recently received a back payment of £5000 of council tax as they have had refunded. This is because they have had a council tax exemption applied due to severe mental disorder.
We have been advised this money is disregarded for Income Based ESA purposes for 12 months. However, would ESA actually find out about this money? Is there any way they would be told or would we have to tell them if any of it was left after 12 months.
He already had £7000 of savings declared to them. Also, is there any guidance on what he can and cannot spend the £5000 on?
We have been advised this money is disregarded for Income Based ESA purposes for 12 months. However, would ESA actually find out about this money? Is there any way they would be told or would we have to tell them if any of it was left after 12 months.
He already had £7000 of savings declared to them. Also, is there any guidance on what he can and cannot spend the £5000 on?
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Comments
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They would have to be told by the claimant/their representative when the money was paid- otherwise if they spot the monies they can potentially suspend the claim whilst they investigate. At the end of the 12 months then the claimant/their representative would have to declare any savings still above the threshold,We have been advised this money is disregarded for Income Based ESA purposes for 12 months. However, would ESA actually find out about this money? Is there any way they would be told or would we have to tell them if any of it was left after 12 months.I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.0 -
Ahhh right so the DWP won't be informed automatically about the backdated payment? So in other words it is up to us to tell them about the money (at the end of the 12 months once it is classed as capital).0
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Ahhh right so the DWP won't be informed automatically about the backdated payment? So in other words it is up to us to tell them about the money (at the end of the 12 months once it is classed as capital).
As Tellit said on your other thread you need to tell them now. Otherwise data matching will throw it up and all they'll see is the money's there and not where it came from - it could trigger compliance proceedings so you'd have to go to interviews about whether or not you've committed fraud. Much easier just to tell them from the start.Unless I say otherwise 'you' means the general you not you specifically.0 -
So just simply inform them now while its recent. E.g. "have received this Council Tax backdated payment of £x from the council which is disregarded for 12 months" and then they know. Is it as simple as that?
What sort of data matching would they do in this case? I've not come across that before. Do you mean from the bank or something or the council? (Please excuse me not knowing what this is).0 -
So just simply inform them now while its recent. E.g. "have received this Council Tax backdated payment of £x from the council which is disregarded for 12 months" and then they know. Is it as simple as that?
What sort of data matching would they do in this case? I've not come across that before. Do you mean from the bank or something or the council? (Please excuse me not knowing what this is).
It should be as simple as that. They'll probably want to see bank statements and proof of where the money came from.
I'm not sure of the exact details how data matching works, but I've read on here of people having proceedings started against them because of having money they haven't declared.Unless I say otherwise 'you' means the general you not you specifically.0 -
Thanks, we have a written letter from the council confirming the backdated payment so can show them at as proof of
1. what it is
2. how much
3. where it has been paid (it says that in letter too - bank account)0 -
Thanks, we have a written letter from the council confirming the backdated payment so can show them at as proof of
1. what it is
2. how much
3. where it has been paid (it says that in letter too - bank account)
If I were you I'd send that, with bank statements for all accounts covering the day it went in, and a covering letter explaining what it is and reminding them that it's disregarded for 12 months.Unless I say otherwise 'you' means the general you not you specifically.0 -
Ahhh right so the DWP won't be informed automatically about the backdated payment? So in other words it is up to us to tell them about the money (at the end of the 12 months once it is classed as capital).
Gray1404 makes a very valid point.
Why doesn't the local authority in such instances inform the DWP as a matter of routine (and to avoid any trouble or cost to the claimants?)
It would be bizarre in the extreme for the national govt in the form of the DWP to suspect fraud due to a lump sum received and spotted via data matching, especially when that lump sum reimbursement only occurred because of the error of another arm of the State in the form of the local govt dept and that would be known (you guessed it)...by data matching.Please be polite to OPs and remember this is a site for Claimants and Appellants to seek redress against their bank, ex-boss or retailer. If they wanted morality or the view of the IoD or Bank they'd ask them.0 -
I am still really confused regarding this "data matching". What is it and when does it take place?
Yes, I know some data is reported, e.g. interest payments made to savings accounts, but a benefit backpayment from another government department, that sounds a bit far fetched. Unless I am missing something?0 -
I am still really confused regarding this "data matching". What is it and when does it take place?..
Yes, I know some data is reported, e.g. interest payments made to savings accounts, but a benefit backpayment from another government department, that sounds a bit far fetched. Unless I am missing something?
DWP and HMRC share data.
Both are also working on systems that match their data with third party data. HMRC get data from the likes of eBay etc. They have Connect.
Here is a letter that explains some of the things they are up to.
https://www.parliament.uk/documents/commons-committees/public-accounts/Correspondence/2015-20-Parliament/PAC-Response-final-signed-copy-of-follow-up-letter-to-3rd-party-data.pdf0
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