Council Tax Rebate fraud and taxation

How we deal with fraud

To make sure that Energy Rebate Payments are not wrongly claimed, anyone collecting their money from a Post Office will need to provide ID. 

This allows us to carry out post-payment checks to make sure the funds were claimed correctly. We will consider taking criminal action against people who’ve wrongly accepted funding.

You must tell us if you receive the Council Tax Energy Rebate and you’re not eligible. You may face prosecution if not.

Any payment made because of fraud or error, may be subject to claw back.

The government is supporting local councils to make the necessary checks to ensure payments can be verified and have been made correctly.

Tax on the rebate

All payments made under the Main Council Tax Rebate Scheme are non-taxable.

You don't need to inform HMRC of the amounts received and if you're self-employed, you don't need to report it on your Self-Assessment tax returns. 

As these payments are non-taxable, they don't impact tax credits.

Tax credits claimants don't need to report these payments as income to HMRC.

Payments are treated as Local Welfare Assistance and won't impact Housing Benefit, Council Tax Support or Universal Credit entitlement, and these departments don't need to be told about the rebate payment.