Council tax fraud review nets £150,000

»»NEARLY 300 households claiming single-person discounts on their council tax in Mid Devon – equivalent to £150,000 – have been removed as part of a fraud review.

A total of 293 households were wrongly claiming that only one eligible council taxpayer lived at their property, according to a report by the Mid Devon District Council’s internal audit firm. If just one adult lives in a property as their main home, they receive a 25% council tax discount. Various criteria mean that more than one person who is over 18 could live at the property but it could still be eligible for the reduction, such as if they are in fulltime education.

However, residents must notify the council within 21 days if their circumstances change and they are no longer eligible for the discount.

Ken Johnson, from Devon Audit Partnership, Mid Devon’s internal auditor, said the authority is the first in the county to complete its single-person discount review, as well as a review small business rates relief.

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The single-person discount review led to £150,000 worth of additional council tax being identified

Ken Johnson, Devon Audit Partnership

“The single-person discount review led to £150,000 worth of additional council tax being identified,” he said.

A study by the Chartered Institute of Public Finance and Accountancy in 2019 showed that on a national basis, roughly four in five 79 cases of fraud against councils was linked to council tax fraud.

Paul Deal, Mid Devon’s corporate manager for finance, said the council receives roughly 10% of a council tax bill, meaning the extra £150,000 recouped in council tax would be about £15,000 for the authority. Council tax is collected by district councils but then shared between other local authorities and organisations, such as the police and county council.