Brentwood Borough Council

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Brentwood Borough Council

FOI 14823

Councl Tax

Request


1. How does Brentwood Council collect from self employed residents their figures for earnings from self employment when calculating eligibility for Council Tax relief or reduction?

2. What time period is used for the calculation, e.g. previous tax year, previous calendar year etc

2. Does Brentwood Council apply a “floor” level which all self employed residents are judged to earn regardless of their actual earnings?

3. If two residents have identical circumstances in all respects which are measured including amount earnt, but one is employed and one is self employed, do they qualify for the same level of relief or reduction in Council Tax?




I am writing to ask under freedom of information for some details about the way in which your Council administers Council Tax relief, reduction or another name for not charging full Council Tax to people based on their personal circumstances
which you use.



Please can you tell me what relief or reduction you would give if any to



1. an employed single person earning £5,000 per annum

2. an employed single person earning £10,000 per annum

3. an employed single person earning £15,000 per annum

4. an employed single person earning £20,000 per annum

5. an employed single person earning £25,000 per annum




6. an employed single parent earning £5,000 per annum

7. an employed single parent earning £10,000 per annum

8. an employed single parent earning £15,000 per annum

9. an employed single parent earning £20,000 per annum

10. an employed single parent earning £25,000 per annum



11. an employed couple earning £5,000 per annum

12. an employed couple earning £10,000 per annum

13. an employed couple earning £15,000 per annum

14. an employed couple earning £20,000 per annum

15.an employed couple earning £25,000 per annum



16. a self employed single person earning £5,000 per annum

17. a self employed single person earning £10,000 per annum

18. a self employed single person earning £15,000 per annum

19. a self employed single person earning £20,000 per annum

20. a self employed single person earning £25,000 per annum



21. a self employed single parent earning £5,000 per annum

22. a self employed single parent earning £10,000 per annum

23. a self employed single parent earning £15,000 per annum

24. a self employed single parent earning £20,000 per annum

25. a self employed single parent earning £25,000 per annum



26. a self employed couple earning £5,000 per annum

27. a self employed couple earning £10,000 per annum

28. a self employed couple earning £15,000 per annum

29. a self employed couple earning £20,000 per annum

30. a self employed couple earning £25,000 per annum



31. A couple one of whom is self employed and one employed earning £5,000 per annum

32. A couple one of whom is self employed and one employed earning £10,000 per annum

33. A couple one of whom is self employed and one employed earning £15,000 per annum

34. A couple one of whom is self employed and one employed earning £20,000 per annum

35. A couple one of whom is self employed and one employed earning £25,000 per annum



in all cases the people involved being of working age.



including any details needed

e.g.

1. if the hours that they work would affect the relief given please give the value for each hours of work category i.e. under 16 hours, between 16 and 30 hours, over 30hours etc

2. if the number of children affects the single parent or couple amounts of relief please give the value for 1,2 or 3 children.



Please also tell me what level of savings people can have before they will not get Council tax reduction or relief

e.g. If they have no savings they get the full relief due for their earnings

if they have £5,000 in savings they only get half the relief due for their earnings

if they have £10,000 in savings or more they do not get any council tax relief

or whatever the parameters are that you are working from.

Response

How does Brentwood Council collect from self-employed residents their figures for earnings from self-employment when calculating eligibility for Council Tax relief or reduction? Customers are asked to complete an online self-employed form designed to capture relevant information – this can be found on Brentwood Councils website. If there are any further queries following receipt of this we may also ask customers for proof of their accounts/tax return.

What time period is used for the calculation, e.g. previous tax year, previous calendar year etc? This will be dependent on the customer’s circumstances and can differ from case to case.

Does Brentwood Council apply a "floor" level which all self-employed residents are judged to earn regardless of their actual earnings? In some cases yes. This is dependent on the circumstances of the customer and how long the business has been running e.g. if there has been no identified downturn and the business has been running for several years and an application for Local Council Tax Support is received, but the customer is not earning at least the equivalent of minimum/living wage based on the number of hours they work, the authority could apply a minimum income floor to bring their self-employed earnings up to the same value as an employed earner working the same hours at minimum wage.

If two residents have identical circumstances in all respects which are measured including amount earnt, but one is employed and one is self-employed, do they qualify for the same level of relief or reduction in Council Tax? If every detail of the application was identical, including council tax charge, household make up, total household income types and amounts, hours worked and that net self-employed income as calculated by the Authority is the same as net employed earnings as calculated by the Authority they would receive the same level of Local Council Tax Support. If a minimum income floor is applied, assuming it was the same amount as the employed persons net earnings, then they would be entitled to the same amount, but again, assuming all other circumstances/variables were identical. The minimum income floor would be treated as their self-employed earnings.