Bedroom Tax Refund

[theshedman]

Hi, I posted the stuff below on an old thread but thought it may be useful to someone.

An old thread I know but I heard someone the other day saying about this case of the suicide and that she wouldn't have had to pay the extra money. It was about something in the Guardian paper last month the link is below. If there is anyone on here who has been affected by it then they may want to take a look. If you think you may have got a case for refund then it may be worth your while asking about it as not all councils keep records going back that far so they may not contact you. What I meant in the last bit was that they may not tell you that you may be entitled to a refund unless you contact them.

http://www.theguardian.com/housing-network/2014/jan/09/bedroom-tax-error-explained-housing-benefit

[Peter Pedant]

.

The news spread like wild fire sheddie

basically it is an appeal ct case where it was decided that if the rent contract pre dated the bedroom tax then the b.t. didnt apply

the councils should have written to all the punters affected a swell.

[B00]

Don't understand.

How can you can a refund on monies that you didn't pay out in the first place? I (wrongly?) assumed that the 'bedroom tax' was a reduction in housing benefit, so how can you have a refund on something that wasn't paid to you?

[theshedman]

As long as people know about it that is the main thing and as some councils don't keep records going back that far some may not have been informed.

[theshedman]

BOO some people who have been affected and paid the bedroom tax that they didn't have to pay before April last year are entitled to get that money back. Only some people though. Have a look at the link.

[Peter Pedant]

O god I can Boo - as a recipient

the councils make up the rent they 'should' have paid.
The disruption was huge and they wont pay for that
neither will they pay anything for people who threw in the sponge and moved....

whether or not housing benefit is a 'good thing' is another argument
[ it is obviously a 'good thing' for me....]

[ToraToraTora]

What is this "bedroom tax"? I have bedrooms in my house and no one charges me any tax.

[Gromit]

Tora,

You are exempt from Bedroom Tax if your servants sleep in them.

[ToraToraTora]

well I have 1 spare all the time and 1 spare a lot of the time, should I be paying some tax?

[dave50]

It's not a tax.

[ToraToraTora]

I see dave so can anyone explain why I keep hearing of this "tax"? I must admit I did wonder because it did not appear on my tax return.

[B00]

Sorry PP, not following you.

3T- If you're on housing benefit, then yes (I think!)

[ummmm]

You assumed correctly, B00, it is a reduction in housing benefit. The tenant would have to make up the shortfall.

[AB Editor]

I don't follow either B00. Can someone explain it in a very clear way please?

I have read the Guardian article, and it doesn't seem to make a great deal of sense. I fundamentally don't understand why some people are entitled to have some "money back"?

[theshedman]

Yes BOO 'bedroom tax' was a reduction in housing benefit meaning that if you received Housing Benefit then the amount you get is for the number of bedrooms you need and if you had more bedrooms than that you had to make up the difference yourself so in fact you would have paid some of the rent. The link I put on shows that if you had been claiming HB for a certain time and been in the same house then you would be exempt from paying it.

[rockyracoon]

If for arguments sake a 3 bed council house is £500 a month and you only need 2 bedrooms your housing benefit might be reduced by say£50 a month. The council still want £500 so the tenant will have to find the £50.

[theshedman]

Forgot to put it seems this is what the government call a loophole and it will probably be closed soon.

[AB Editor]

I see, that is somewhat clearer.

It's a return of funds withdrawn in error.

[B00]

Ahhh, get it now, I think.

[rockyracoon]

Those that are covered by the loophole can claim the £50 per month that they paid. Once the loophole is closed though, they'll be back to square one.

[ToraToraTora]

So rather than being a "tax" it is in fact a reduction in free money given out by the state. I see that does not fit the traditional description of what a tax is, no wonder I was confused!