Council tax benefit

[hog-man80]

I have recently taken my self employed accounts to the council tax office to prove my earnings. I do my own accounts and end up with a balance sheet, that I have shown to the council. They then make an assessment based on my figures. When their assessment came through the post, I noticed that they had counted my profit, which is net after business expenses, as being higher than my figures. So I went back and pointed this out, but now a week later, there is a letter saying I have not provided any additional information, and their assessment still stands. I am going back for a third time, but I wonder if I should be writing to them as well. I have not had issues in the past, and my accounts are always accepted by the revenue.

Regards Paul.

[id6052]

the method for calculating self employed income for assessing the level of council tax support will depend upon the scheme introduced by your local council - so difficult to advise without seeing actual scheme

 

however for housing benefit (and for council tax benefit prior to April 2013) purposes, the rules for calculating self employed income are different to those used by HMRC for income tax purposes

 

some outgoings which are allowable for tax purposes are not allowable for benefit purposes, a common one would be depreciation

[id6052]

if you need better clarification, ask them for a written explanation of the calculation breaking down the expenses allowed and any that have been disallowed

[hog-man80]

I have been back to the council and asked for an explanation, as to how they arrived at an earnings figure that is higher than the figure I have as my earnings. They have allowed my expenses of fuel, phone, insurance, electric and rent. But the figure they call gross profit is higher than what I call net profit. As they have looked at this twice now, if I disagree with it, I will have to appeal. I have tried to find out how they calculate their figures on the net, but I have had no luck. I am off to the CAB tomorrow.

Paul.