Is this council tax fraud?

[GlasweJen]

So I know a person (we'll call the person Mr A) who lives in a flat with 3 others. Mr A was a full time student last year but is, in his words "taking a gap year" this year due to failing all his exams. He is not paying tuition to the university and he is not under any obligation to attend classes, the university only ask that he resit the exams.

Because he doesn't need to be at uni Mr A works full time cash in hand and does not pay tax or national insurance. He was caught not paying council tax last year and ordered to pay his council tax or face a fine. Mr A then had a lecturer sign a form to say that he was a student at the university and submitted this to the tax office so that they are no longer pursuing him for council tax. Lecturers do not normally sign these forms as they do not have access to the computer with the students status.

As Mr A falsley delcared that he is a full time student is this council tax fraud? Also should I report Mr A for not declaring his wages and so not paying tax or NI? I don't think Mr A is in reciept of benefits as his council tax declaration bars him from claiming anything.

[lee6370]

I feel the Council Tax is an unfair tax, but what Mr A is doing is fraud.

Should you report him? to be honest i would.

[Chesterexpress]

You say he isn't claiming any other benefits and technically he is still a student. Therefore as it appears that you are only assuming that he pays neither tax or N.I. I suggest that it has nothing whatsoever to do with you.

[GlasweJen]

No I know for sure that he's not paying tax or NI as he does not have an NI number. He is from the irish republic and, in his words, can't be bothered to go to the interviews the job centre require before issuing him with this number.

Also the 0% council tax only applies to full time students who have formal study for more then 19 hours per week, he has no formal study time. Also he did not matriculate this year as he is not actually a student, just sitting the exams.

It just galls me that he contributes nothing to the UK, sponges off the scottish government for free tuition, free NHS and brags that he will continue to get away with this for as long as he wants meanwhile there are students who can only work part time due to study commitments and still pay income tax and NI.

[Conniff]

I always thought the fraud was the other way around.

[GlasweJen]

three words: North Sea Oil

I didn't realise that CAG allowed for anti-scottish remarks to be made on general boards, scottish people pay tax as well in case you didn't notice.

[Jemms00]

If they found out about his job then yes I think it is... although I agree with lee6370, council tax is unfair and I wish I could get out of paying it.. BUT I still pay it. I know of a number of people doing similar, I've never had the urge to grass them up though. I guess I don't hate them enough to do that, I believe what goes around comes around.

[GlasweJen]

I actually get on really well with this guy, I just can't stand what he's doing and I've told him this but as far as he's concerned he's here to get a free ride and will run back to Ireland if the government ever catch him up.

[Conniff]

You should do what 'you' think is morally right. Keep in mind also that when your bill increases it is just this sort of thing that makes that rise that little bit higher.

You can, of course, do it anonymously.

[Theophilus H]

Unfortunately the world is full of immoral people. Income tax evaders, Council Tax evaders, benefit cheats, car tax dodgers, debt absconders etc etc.

It ends up with US paying more. Grass em up!!!!

[miziwizzi]

Students in full time education get a 25% discount on counil tax on presentation of a letter from the University.

Therefore he is doing nothing wrong regarding council tax seeing as you said he lives with 3 others in the flat.

His quarter of the bill is being covered by the 25% reduction on the overall bill.

[GlasweJen]

If a home is occupied only by student then they pay 0 council tax. If even just one person occupying the home isn't a student or a dependant of the student then there is a 25% reduction in council tax. As my friend is not a student they should be paying council tax on the property.

doesn't matter anyway, the tax man caught up with him at work through someone applying for tax credits despite being paid cash in hand and paying no tax so all his finances are being looked at and yes, he's been told he's to pay 75% council tax.

[binkhus]

formal study can take the form of time spent revising using uni tools like library and web discusion room, computer based assignments and study guides too as far as i remember and one on one tutorial time with tutor. he would also have been provided with a ni number to enrol in english uni so he is prob not doing anything wrong and might just not be telling you about it all. i would leave him alone he may be above board

[GlasweJen]

You don't automatically get an NI number to go to uni, at least you don't in Scotland. Also you have to be registered as a student for the academic year, which he's not. And like I said he's already been caught through his work and i can asure you there is no NI number for him and he's facing a massive fine for that as well as council tax fraud.

[miziwizzi]

I find it very odd that a tutor would risk their job by signing to say this chap is a student when hes not,and normally these letters come from the Dean of the university not a lecturer, also I question the 19 hours a week thing too as I am currently a student and am only in formal study for 18 hours a week yet I am entitled to council tax reduction.

Perhaps the rules are different in Scotland?.

[GlasweJen]

Perhaps, there is a different support package for students here after all.

[sohoscribbler]

Intercalating (ie intermitting) students who remain enrolled at a recognised higher or further education institute on a full-time course are full-time students under council tax rules and do not have to pay council tax unless they are sharing with non-students and agree to pay a share or own the property. The reasoning is that they are not normally eligible for benefits such as jobseeker's allowance or council tax benefit. As intercalating students usually don't get a student loan, they often have no choice but to work to survive. However they are not exempt from paying income tax or National Insurance, although their earnings may be below the threshold to pay.

[LutherBlisset]

Anyone who tries to evade paying income tax/nic or indeed council tax should be reported. no one likes paying tax, but, as i have found out, if you dont others end paying indirectly for you to sponge off the state. My record in the past has not been great where council tax is concerned, but I have almost paid off my arrears. Its taken a while and it has taken a huge amount of effort but i am almost there. This lad needs to pay his way - there is no negotiation on that.

Glaswejen - as a fellow Scot i say your instinct was right. If the Irish lad wants to come over here, he needs to pay his way - end of.