Council Tax Benefit

[lookingforward]

Hi everyone,

Quick Q, after getting into arrears a couple of times in the last couple of years on council tax, a friend said we should look at council tax benefit. I didn't think we could get this as we get working tax credits, and the council never mentioned we should look at this when we were having problems.

Anyhow I used an online benefit check calculator to see and yes we can get it and it will make a big difference and the money can then go towards the mortgage arrears . I work from home for my partner for a small wage and this has always gone into the family pot so no money has changed hands per se, no wage slips, DD, etc and as I understand it the council will want evidence of pay etc etc. so how do I get around this ?

Thx as always

[lookingforward]

Re: Council Tax Benefit

If you live with your partner they'll be looking at the total household income, not just your own. Does your partner run a business? It will be that income they'll be looking at.

Hi,
Yes she does and we've got the latest tax return we can take along which shows the payments to me. It was just mine I was concerened about if they asked for evidence of the payments because there is no evidence.

[SXGuy]

Re: Council Tax Benefit

EDIT: so your wages are shown on your partners tax return but no wage slips?

Does your partner earn less than 77k? if so then your partners expenses, i.e your wage, wont be shown as a seperate expense, it will be grouped, therefore they wont know you have an income from the business.

Self employed tax returns where the person earns less than 77k gross, uses a self employment short page, which groups the expenses under 1 lump amount.

Also, depending on how much your paid, will depend if you need to declare it and have wage slips anyway.

Question, are you entitled to more benifits by leaving your wage out of the calculator? if theres no proof, it may be a better idea

[lookingforward]

Re: Council Tax Benefit

Hi SX,

Yes way less than £77k, I'll have to check the tax return, I only read the accountants notes which said that it included my salary (which is £50 p/w).
Trouble is we already declare both our monies incomes to the tax credits people which they also want a copy of I believe, so it all has to tie in.

EDIT:- just checked and yes it is the short form and doesn't actually state a salary it's just under expenses.

So the question is, should I be getting a wage slip for £50 p/w ? if not then all's hunky dorey because it's declared to the working tax credits and we'll have the paper evidence along with the tax return which doesn't legally have to show it as a seperate entry.

[lookingforward]

Re: Council Tax Benefit

Anyone know the answer re the wage slip question please ?

Also if we're granted the council tax benefit, do they knock anything off the working tax credits ?

Would seem stupid if they did but you never know.

[lookingforward]

Re: Council Tax Benefit

Anyone know the answer re the wage slip question please ?

Also if we're granted the council tax benefit, do they knock anything off the working tax credits ?

Would seem stupid if they did but you never know.

Any views please ?

Thanks

[SA Gold]

Re: Council Tax Benefit

Anyone know the answer re the wage slip question please ?

OK, i'll have a crack at this.
If you are "employed" by your partners business then you should receive wage slips containing all the relevant information for PAYE.
I guess your earnings may mean you are exempt from national insurance, although the business would still be liable for employees contributions.
Just a question, but you mention the accountants notes; what is their view on the wage slips/being paid bit? Also, is your partners "business" her self -employment, or running as a limited company?

[SXGuy]

Re: Council Tax Benefit

Sorry for the late reply, email notifications havent been working for me for a while.

Just a question, but you mention the accountants notes; what is their view on the wage slips/being paid bit? Also, is your partners "business" her self -employment, or running as a limited company?

Im assuming its a self employment business, as its been confirmed that the tax return uses a self employment short page.

Ltd company returns are laid out differently.

£50 per week, would not require wageslips as its less than your tax and ni allowance

OK, i'll have a crack at this.
If you are "employed" by your partners business then you should receive wage slips containing all the relevant information for PAYE.
I guess your earnings may mean you are exempt from national insurance, although the business would still be liable for employees contributions.

You have to earn at least £144 a week before an employer pays Employers N.I Contributions as well, so being registered for employment is also not a requirement.

And you are correct that there is no requirement to list business expenses seperately for the turnover the business has.

So im afraid, they will have to accept that your wages are part of those expenses, however, they may want to see the business accounts, which would list the wages paid out seperately.

Plus as you said, benifits have also accepted that you have an income from the business, so in all, they cant really argue, in my opinion.

[lookingforward]

Re: Council Tax Benefit

Yes they want to see business accounts, bank statements etc.

Thanks for all your advice, appreciated.

[Spent2much]

Re: Council Tax Benefit

Yes they want to see business accounts, bank statements etc.

Thanks for all your advice, appreciated.

Hello, my husband is self employed and we get council tax benefit , when hubby applied he had to take his business books in and they go through it with a fine tooth comb, you also need to take your tax credits awards letter in, they will photo copy everything including business receipts, it never took long actually as they have a great scanner , but we had absolutley loads of reciepts, we had a full year of rent receipts for the business premises , you put down absolutely everything, if you have repaired a lock or a door nob put that receipt down too , every little helps, and if you work from home you put the cost of electric and gas , also office equipment, telephone calls , as this all comes off as business expenses .
It took a few replies back and forth before the final figure was granted and we were very happy with the result as like you we needed to put that extra cash towards the mortgage arrears .

Hope this helps

[lookingforward]

Re: Council Tax Benefit

Hi again,

S2Much thx for the info, just trying to get everything together now, so more questions I'm afraid.

My name is on the council tax, but as the main earner would my partner be the one to claim or is it a joint household thing ?

On the form notes under proof of income they state that they want to see accounts for the last financial year. Would that be the accounts 2010/11 to tie in with the last tax return or do they mean 12 months back from today ?

They also want to see at least the last 2 months bank statements, unfortunately my partner doesn't have a dedicated business bank account due to the size of the business, so it's going to be a muddle of business income/expenditure and personal. We could mark on the statements what's what.
Do you think that's going to be an issue, along with the fact that there's no actual fixed payment to me, I just use what's due to me plus whatevers spare in the account to pay towards food for the week, so my bank statements show bugger all activity.

Lastly as there's no payslips for me, parner has to fill in the certificate of earnings form, there's a bit in there "gross pay to date", would that be since I started working in this position, i.e. 2008 or from this tax year i.e. apr 2012 ?


Sorry for so many questions, I hate forms..lol

[lookingforward]

Re: Council Tax Benefit

Hi again,

S2Much thx for the info, just trying to get everything together now, so more questions I'm afraid.

My name is on the council tax, but as the main earner would my partner be the one to claim or is it a joint household thing ?

On the form notes under proof of income they state that they want to see accounts for the last financial year. Would that be the accounts 2010/11 to tie in with the last tax return or do they mean 12 months back from today ?

They also want to see at least the last 2 months bank statements, unfortunately my partner doesn't have a dedicated business bank account due to the size of the business, so it's going to be a muddle of business income/expenditure and personal. We could mark on the statements what's what.
Do you think that's going to be an issue, along with the fact that there's no actual fixed payment to me, I just use what's due to me plus whatevers spare in the account to pay towards food for the week, so my bank statements show bugger all activity.

Lastly as there's no payslips for me, parner has to fill in the certificate of earnings form, there's a bit in there "gross pay to date", would that be since I started working in this position, i.e. 2008 or from this tax year i.e. apr 2012 ?


Sorry for so many questions, I hate forms..lol

Am going to see the council people tomorrow so if anyone can help with these questions it would be appreciated.

Thanks

[Spent2much]

Re: Council Tax Benefit

Am going to see the council people tomorrow so if anyone can help with these questions it would be appreciated.

Thanks

Hi there, i don't think it makes any difference who's name is on the council tax bill, but i would ask and make sure .

You show them the tax returns which you did this January so yes 10/11 .
Yes accounts that tie in with the tax returns.

We don't have a business account either and just showed them our joint account from co-op that was acceptable, we just told them it keeps cost down as business accounts are so expensive .

Not sure about the payslips, but if you write a note and add it to your application they are really good .

I hope this helped and good luck

[SXGuy]

Re: Council Tax Benefit

Gross pay to date, means the financial year in question.

So if its 2011/2012 it will be for that year only.

Last set of financial accounts will be whichever accounts were filed last with HMRC,

So it will be 2010/2011 unless you have already submitted accounts for this year (2011/2012) in which case you can show them those. You may not have though as you have until jan 31st to file those.

Whatever ones they are, your gross pay to date should reflect the same year of the accounts.

The accounts should state your wages as gross plus Employers Ni, but as you earn below the threshold for employers NI, you can take the whole figure as being gross pay to date.

Hope ive made that clear.

[lookingforward]

Re: Council Tax Benefit

That's brilliant, thanks to you both