Council Tax – Should your clients be paying?
Clients under Deputyship or LPA’s who are still receiving care whilst living in their own homes may be entitled to discounted Council Tax payments under a Severe Mental Incapacity discount.
Martin Lewis, of MoneySavingsExpert.com has been raising awareness of this issue since 2016 and has had some success in Wales, where the Welsh Assembley has introduced a dedicated website for people to make applications. All 22 Welsh authorities have agreed to implement this change.
To qualify for the discount, someone must be medically certified as having an SMI – a severe mental impairment – (one that severely and permanently affects their intellectual and social functioning). These could be, for example, dementia (including Alzheimer’s) or severe learning difficulties. Many other conditions may apply and can be ‘disregarded for council tax purposes’ in England, Scotland and Wales. You will need to provide prooof of this from a Doctor, you will also need to provide proof of receipt of a disibility benefit such as PIP or Attendance Allowance.
These disregards can lead to a 25% discount for those who live with somebody else or a 100%/full discount for those who have an SMI and live on their own, a significant saving over the year for the individual. You may also be able to apply for a refund of monies paid if you can prove that the client had an SMI prior to the initial claim, their is no need to explain why you haven’t previously requested an exemption. Again prooof will need to be provided to back up any claim made for a refund.
For more details on Council Tax reductions for Disable People visit the Governments website for full information.