Council Tax Conundrum

[ajhajh]

Hi everyone,

 

I am looking for advice, I have been a (very) mature student for a couple of years and not paid council tax. I have taken in a lodger who is on job seekers allowance and receives housing benefit. When she had her own flat she received council tax benefit and therefore didn't pay it either. She moved in to my house in August and I told the council, immediately I received a bill, they suggested she claimed for council tax benefit. Which eventually she did...They have refused to pay it and I have received a court summons for £560.

 

Surely a job seeker and a full time student living in the same house should not be liable for Council Tax? I calculated the rent and bills presuming we would not be liable for Council Tax so I am in an awkward position now.

 

I have spoken to Bury Council they just keep saying about claiming council tax benefit and I have telephoned the benefits (the lady was very rude and made me feel like I was wasting her time) but did say it depend on which benefit, i.e. contribution or income based job seekers allowance? I do not know the difference or why this would even matter? I am sure she is only claiming job seekers allowance no other benefits.

 

 

Quote from Bury Council's website

 

'The rules for claiming council tax benefit are the same as those for claiming housing benefit. If you do not rent the property you live in, then we can consider a claim for council tax benefit on its own.'

 

That says to me that she should have a case for claiming it?

 

Any help would be really appreciated as I am a student and in a lot of debt also

 

Best Wishes

Alan

[antone]

Hi there, and welcome to CAG. I think we should start this one in the Benefits Forum and see how that goes. I'll move this thread over there now.

[ajhajh]

Hi Antone

 

Thanks very much for your help!

[Nystagmite]

it depend on which benefit, i.e. contribution or income based job seekers allowance? I do not know the difference or why this would even matter?

 

If you receive contributions based JSA, your claim is based on how much national insurance you've paid over the last 2 years. You can have a working partner, savings, etc. and these will be ignored. Contributions based JSA can be paid for up to 6 months.

 

Income based JSA is awarded to people actively seeking work who are on a low income. Their savings and partners income and savings are taken into account. There is no time limit on how long this can be paid for.

[ajhajh]

Hi Nystagmite

 

Thanks for the information, I am sure she has been claiming it for longer than six months so I presume it is income based JSA. Also she has no savings or partner. I am hoping there is a way round this, I will have to pay it anyway, as the court date is 6.2.13. Luckily I have just had a student finance payment.

 

They keep saying to her because she pays my rent the council tax is included in that, but surely she is able to claim council tax benefit?

[Nystagmite]

Did you give her a contract, which stated what was and wasn't included in the rent?

[caledfwlch]

Hi Nystagmite

 

Thanks for the information, I am sure she has been claiming it for longer than six months so I presume it is income based JSA. Also she has no savings or partner. I am hoping there is a way round this, I will have to pay it anyway, as the court date is 6.2.13. Luckily I have just had a student finance payment.

 

They keep saying to her because she pays my rent the council tax is included in that, but surely she is able to claim council tax benefit?

 

Is it possible you both need to apply for the council tax benefit? It might also be worth trying to find out whether becoming a Landlady, and having an income via a Tenant/lodger invalidates your exempt status as a student and in fact makes you eligible to pay. Very difficult to see why they are turning your lodgers council tax benefit claim down, does she get housing benefit? The normal setup of bedsits/lodgers is all bills, electric, council tax etc are included in rent, so its possible a staff member is thinking something dodgy is going on.

[ajhajh]

Yes she claims housing benefit, which is paid to her and she pays me. So like you I can't understand why they wouldn't pay her council tax benefit? I have already given them proof that I am a full time student, I don't have to claim, I am just disregarded or exempt. I understand and totally agree with you about the normal set up of lodger/tenant but some times this isn't the case also, and in our case I did say to her if she found work the then she would have to pay the council tax. When you say the staff member are you referring to the benefits staff?

 

The other scenario I thought of was where a group of students live in a house, or a couple of people of job seekers...The landlord is raking in a lot more than I do, and doesn't have to pay council tax.

 

I'm going to write to my local MP, have you heard how the government are making people take a lodger or they lose some benefit? In that case then, I bet all them people will have to pay a single persons council tax rate too? Hardly worth taking in a lodger.

[ajhajh]

I gave her a contract but I'll have to check what I wrote?? Thanks good point!There again she can't afford to pay it either ..Trouble is we are friends too

[dasis16]

I think it comes down to the fact that you now have a second source of income - your lodger. I would speak to the council tax department and tell them you are a full time student and therefore exempt from paying, and see what they say. Push them to officially clarify their position in writing.

 

I imagine they will say the fact you have another source of income means you will have to pay council tax. In their mind they will probably class you as a landlord who happens to be a student, not the other way around.

[ajhajh]

I think it comes down to the fact that you now have a second source of income - your lodger. I would speak to the council tax department and tell them you are a full time student and therefore exempt from paying, and see what they say. Push them to officially clarify their position in writing.

 

I imagine they will say the fact you have another source of income means you will have to pay council tax. In their mind they will probably class you as a landlord who happens to be a student, not the other way around.

 

 

thanks Dasis

 

I will ask for clarification in writing yes good idea. The fact I have an income is irrelevant though I'm entitled to work and still be exempt from council tax. My daughter lives in a student house with 4 others, they don't pay any, they all work, the landlord does not pay council tax. He rakes in £1500 over month off that house, this compared to my situation seems totally unfair.

 

I will try CAB too

[dasis16]

I agree with you. I have both been a working student exempt from council tax, and lived with flatmates in that position too. The only thing that gives me pause is that being a landlord is not quite the same as say working part time in a shop, while being a full time student. It does become a slightly grey area. How many "hours" do you work as a landlord? Arguments could be made to say you work both all the time or hardly any at all.

 

Unfortunately I doubt the council will allow both of you to go without paying council tax though. A smart man would approach you first, you have more money!

[id6052]

one of the primary conditions to claim CTB is that you must be liable for Council Tax

 

your lodger is not liable for Council Tax for the property, you are

 

you need to make a claim for Alternative Council Tax Benefit (aka Second Adult Rebate)

Edited February 4, 2013 by id6052