Best way to correct council tax single person discount error

[Allisnotlost1]

Not sure where to put this but hoping for sensible replies on this board.

One of my cousins has asked me for advice as I have a legal background, but this isn’t really a legal question so canvassing more informed views.

Her (adult) daughter has had a friend living with her for a couple of years now. It started as a stop gap when the friend moved to the city but she started paying rent and it worked well and continued. However my cousin’s daughter stupidly never informed the LA that she was no longer a single person for council tax. She says unintentional, I’ve no reason to disbelieve. Obviously she does now need to tell them and back pay what’s owed, but my cousin is panicking about likely prosecution. I think she’s best off being up front and making immediate payment - they want the money not the hassle of a prosecution, surely? But is there a better way to handle it to avoid any consequences?

Views welcome!

I would definitely advise her to contact them herself, rather than waiting for them to find out and it becoming more serious - plus the longer it goes on the more she’ll have to pay back. In my own experience, there was a genuine (similar, but not the same, but involved the local council financially and I owed some money) mistake on my part when an adult dc either moved back in for a short period or when there was a gap in education (I can’t actually remember which now), and it was just a case of having to pay it back. They will usually ask for all of it initially, but you can contact them and ask to pay it back monthly over a period. Far better for her to face up to it now before it becomes more serious and even more money will be owed. If she contacts them, unless she then refuses to pay it back (as I say she can ask to have a payment plan, depending on her income), I don’t think there would be any legal ramifications.

How is the council going to know when the friend moved in? She should just say they've been living with her since earlier this year. So back pay for a few months and then pay the correct amount going forward. The council really won't be arsed to check further.

I think being dishonest is a bit of a risk. They can ask for evidence - whether that be bank accounts, or whatever. Especially if she’s been regularly paying rent in to the cousin’s bank account. I think the risk of legal ramifications are far greater if there is found to be a discrepancy, possibly even being seen as fraud. Yes, she definitely could lie and risk it, but it sounds like they are already worried about any legal actions, so surely better to be honest. Twenty five percent shouldn’t be more than a few hundred a year at most.

I doubt they would prosecute someone who admitted the error and agreed to pay. Theft charges require there to have been an attempt to permanently deprive the victim/relevant party (council) of the money. By agreeing to pay it back she’s showing she’s not attempting to do this.

25% off is £600 a year for me.

Thanks all, I agree that honesty is best - no point minimising the time. Reassuring to hear it’s likely to be possible to pay and resolve it immediately.

It's a bit difficult to believe that it was unintentional for two years unless her local council doesn't ask residents to sign (online) a statement each year confirming single person residency status for council tax purposes. Mine does, as did the previous one before I moved.

Interesting - I don’t think I’ve ever done one of those where I am.

I have been claiming single person discount for 8 years now - I have never had to reconfirm that I am still entitled to the discount.

Sorry this is the post I meant to quote.

My council check single person discount using financial records like experian for any discrepancies, then they send out an enquiry form, so its best to come clean about the date, so that they dont come back later with a further bill

Yeah, admittedly I don’t think mine is much off that either, I just wonder if the risk of further action might be worse. Difficult situation really, mine was a mistake/oversight on my behalf and I genuinely had no idea until I got a letter from them (a good couple of years after it had happened, and it wasn’t the exact same situation). Luckily it wasn’t as long as two years, but I did have to pay it back and was able to sort it so that it was monthly. I did have another period where there was a mix up over council tax as well and had to pay that back last year. TBH, it was easily sorted and I’m glad it wasn’t for very long.

Yes, I checked my own and I can’t find any record of ever having confirmed it, though can see other counties too. How strange it isn’t universal.