Council tax benefit calculation sheet for clients claiming pension by callmemelo


									Council tax benefit calculation sheet                                                         
for clients claiming pension credit
Extent: England, Wales and Scotland                                                                       February 2004

Client’s name:                                                                 Date:             _________
This should be used with How to work out how much council tax benefit and second adult rebate, and Council
tax. It should only be used for a client who is claiming pension credit

If the client gets guarantee credit, there is no capital limit so start the calculation at Step 2

Step 1: Check how much capital                                   Step 4: Work out applicable amount
Normally use the figure from the pension credit
                                                                 Personal allowance
                                                                 Single person/lone parent/
If more than £16,000, no council tax benefit payable,
but check entitlement to second adult rebate
Step 2: Work out council tax liability                           0 to Sept after 16 birthday
                                                                 Sept after 16 birthday to
Annual council tax liability                                                  th
                                                                 day before 19
( and
(in Scotland, deduct water charges)                                           Subtotal
If client is jointly liable, divide
annual liability if appropriate                                  Premiums
                                                                 Family (check rates and
Convert to daily amount                                          baby addition)
(divide by 365)
                                                                 Disabled child
If in band F, G or H,
apply appropriate restriction                                    Enhanced disability
(but only before 1 April 2004)                                   (for a child)
Convert to weekly amount                                         Severe disability
(multiply by 7)
Weekly council tax liability
                  Box A


Step 3: Non dependant deduction
                                                                 Applicable amount Box C
Weekly council tax liability
(Box A)

Minus non-dependant deduction
(if client has joint liability, divide
deduction if appropriate)

Maximum council tax benefit
                Box B

If client is on guarantee credit, stop at Step 3
 February 2004

Step 5: Work out weekly income                      Step 6: Compare total income with
                                                    applicable amount
Pension Service income figure                       Applicable amount (Box C)

                                                    Total income (Box D)
Additions to the Pension Service income figure
                                                    If Box D less than or equal to Box C, client entitled to
Savings credit                                      maximum council tax benefit
                                                    (Box B)
Child benefit (check rates)
                                                    If Box D more than Box C, subtract Box C from Box D.
Child tax credit                                    This is the difference figure Box E

                                                    20% of Box E = Box F
Partner’s income and capital
                                                    Box B minus Box F equals

                                                    Weekly council tax benefit

Deductions from the Pension Service income figure   Step 7: Second adult rebate
                                                    Calculate 35% of weekly council
Childcare costs                                     tax liability (Box A) Box G

                                                    If council tax benefit less than Box G, calculate
                    Subtotal                        second adult rebate

                                                    Annual council tax liability for
Income and earnings disregards                      second adult rebate purposes
                                                    ( and

 lone parent’s earnings                             Convert to daily amount
                                                    (divide by 365)
 widowed parent's allowance/                                                                     %
 widowed mother's allowance                         Rate of second adult rebate

                                                    Daily council tax liability multiplied
 maintenance                                        by rate of second adult rebate

 extra earnings disregard                           If in band F, G or H, apply
                                                    appropriate restriction
                                                    (but only before 1 April 2004)
 Any extra amount disregarded
 from: war disablement pensions,                    Convert to weekly amount
 war widows’ pensions,                              (multiply by 7)
 and war widowers’ pensions
                                                    Weekly second adult rebate

                   Subtotal                         If second adult rebate more than council tax
                                                    benefit, client better off on second adult rebate

Total income                  Box D                 Step 8: How much council tax to pay
                                                    Convert weekly council tax benefit/second adult rebate
                                                    to annual amount
                                                    (divide by 7; multiply by 365)

                                                    Annual council tax liability (Step 2)
                                                    minus annual benefit/rebate equals

                                                    Annual council tax bill

To top