The Government is urging eligible households to claim their £150 council tax rebate as November 30th comes because, this time, the deadline won’t be extended!

The reason we’re talking about it here at Phillips & Co Accountants is that there are a lot of questions coming from sole traders, personal tax individuals and small limited companies. Mainly, the question is whether or not the £150 council tax rebate will count towards taxable income when it comes to doing the tax return.

Luckily, as the people who file your accounts and communicate directly with HMRC on your behalf, we know the answers. That’s why we’ve put together a quick FAQ so you’ve got all the facts you’ll need to know about the £150 council tax rebate.


What is the £150 Council Tax Rebate?

To help with the cost of living crisis here in the UK, the government decided to issue households with a £150 rebate on their council tax payments. However, only eligible households can claim this rebate and those that pay by direct debit won’t have to apply; the payment will automatically be issued into the paying account.


Who is Eligible for the £150 Council Tax Rebate?

It should be noted that the £150 council tax rebate is paid to the household, rather than the person. So, you won’t see £150 appear in your personal bank account unless this is where the direct debit comes from. Your household is eligible for the rebate if you lived in a property with council tax band A, B, C or D on 1st April 2022.


When Will I Receive the £150 Council Tax Rebate?

Most people will have received their council tax rebates already. Especially if paid via direct debit as the transaction is automatically posted. So, check your account to find the £150 council tax rebate between May 2022 and September 2022. 

The reason the deadline has been extended is for people who don’t pay by direct debit and need to apply through their local council. If you apply before 30th November and are confirmed as eligible, you’ll be paid into your nominated bank account.


Will I Have to Pay the £150 Council Tax Rebate Back?

No! This is a discretionary rebate from the government distributed through local councils. This rebate does not need to be paid back as it is already classed as being paid back to you by the council from your council tax contributions.


Does the £150 Council Tax Rebate Count As Taxable Income?

No, again! The £150 council tax rebate is not classed as anybody’s taxable income. This means that if you’re a sole trader, partner, landlord, director of a limited company or otherwise, you will not have to announce these funds on your income statements. Your accountant will be able to confirm this as you complete your quarterly or yearly returns.


If you’d like more information about the £150 council tax rebate, contact your local council. You can find out who your local council is by entering your postcode into the search function. They’ll be able to tell you what council tax band you’re in (or were in at the property you lived at on 1st April 2022) and if you’re eligible.

Otherwise, talk to your accountant who’ll be able to give you more information regarding the income you need to announce when preparing your returns. Here at Philips & Co Accountants, we’re a Chester-based firm with years of practice experience. This means we’ve got just the right information and know-how you need to correctly crunch the numbers for HMRC. Call us today to talk about your business’s finances!

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