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Top Housing Benefit & Council Tax Benefit topic #8801

Subject: "I think this makes sense - C/tax benefit and NDD's" First topic | Last topic
frodo
                              

manager cab, south staffordshire cab
Member since
11th May 2007

I think this makes sense - C/tax benefit and NDD's
Wed 09-Dec-09 01:55 PM

Hi all,

Seen a case today that I have never come across before and just interested to see what other wise minds make of it.

Client and his wife came to see me. They were awarded PGC of approx £30 per week from 10/8/09. They own their home so no HB payable but were advised by the council they should be entitled to full CTB.

Clients applied, but it transpires their two adult sons live with them. Both sons are 18+, work f/t and earn sufficient wages to have to pay the max NDD each. Now this works out at 2 x £6.95 each per week = £13.90. Clients c/tax is £11.96 per week so there is no CTB payable because the value of the 2 NDD's is already covering the weekly c/tax. Therefore clients c/tax bill is unchanged.

Now this does seem right to me but TBH I have never encountered a situation where potential CTB is entirely cancelled out by NDD's. Just wanted to be sure I'm not missing anything? Client feels v.angry about this as he feels he and his wife are being penalised and that sons are being expected to pay c/tax when they are not liable. ( I did ask if son's contributing at all and they are not). Anyway have explained a bit more about NDD's and the rates etc and client reported he understood the situation but just wanted to double check council are correct? (And am alone at outreach with no one to discuss this with.....)

Cheers
Sarah

  

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Replies to this topic
RE: I think this makes sense - C/tax benefit and NDD's, Kevin D, 09th Dec 2009, #1
RE: I think this makes sense - C/tax benefit and NDD's, clairehodgson, 09th Dec 2009, #2
RE: I think this makes sense - C/tax benefit and NDD's, darlocab, 09th Dec 2009, #3

Kevin D
                              

Freelance HB & CTB Consultant/Trainer, Hertfordshire
Member since
20th Jan 2004

RE: I think this makes sense - C/tax benefit and NDD's
Wed 09-Dec-09 02:49 PM

Based on the facts stated, the above is correct.

Thinking laterally, is either the clmt or his wife in receipt of either Attendance Allowance (any rate) or the care component of DLA (any rate)? If so, non-dep deductions should be nil.

If AA or DLA(c) is not in payment, would either be entitled? Even if its borderline, there would be nothing to lose by applying (apart from just a little bit of time to make the application(s)).

  

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clairehodgson
                              

solicitor, CMH Solicitors, Durham
Member since
09th Apr 2009

RE: I think this makes sense - C/tax benefit and NDD's
Wed 09-Dec-09 03:52 PM

i have to say the sons are taking the wotsit if they are living at home and not contributing towards their own keep (which includes the expenses associated with the house). if they left home they'd sharp know about it! sorry, something i do feel strongly about.

  

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darlocab
                              

welfare benefits, darlington citizens advice bureau
Member since
03rd Mar 2009

RE: I think this makes sense - C/tax benefit and NDD's
Wed 09-Dec-09 04:18 PM

Spot on Claire.

That is why government legislated for NDD so those who can afford make a contribution instead of getting a free ride

  

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Top Housing Benefit & Council Tax Benefit topic #8801First topic | Last topic