Council tax fraud

In the last few years, people have been getting unsolicited calls with information that they are placed in the wrong council tax bracket and can get a rebate. 

Council tax fraud refers to the crime where the person claims to live alone when more than one person lives with them, or they claim to be a student, but they are not, or seek a discount in tax that they are not entitled to. 

One can be charged a penalty if they have not been informed about the changed circumstances, like if they are not living alone. They will have to pay back the benefits if they have been wrongly awarded. 

You can be charged/ penalised for any of the following acts–

• If you do not declare (or hide some information) to get a grant, for example - claim to live alone but have a partner.

• Use some addresses for communication where you do not live.

• If you are not informing about total income, capital and savings.

• If you do not update about the changes in circumstances.

The government agencies record such data and conduct figure matching to prevent duplicity and detect fake information. However, such frauds cost the taxpayers, reducing the money available to invest in other welfare activities.

How Does It Happen?

A person gets an unsolicited call from a person who seeks information and proposes to get higher benefits for a small fee. Nevertheless, they may ask for personal/ bank details only to carry out identity theft.  

How To Protect Yourself?

• Never respond to phone calls claiming to get you a government grant you are not entitled to.

• The local council will never call to discuss the rebates or benefits.

• No legitimate firm asks you to pay a fee to obtain a grant. Therefore, do not provide your credit card or bank details to people who seek a fee to help you claim a benefit.

• If you suspect fraud, you can hang up the phone and, after some time, call the bank to report the crime.