On 1 April 2017, Tower
Hamlets Council introduced a policy that removed full Council Tax Reduction
Scheme from its self-employed residents. The policy change to begin
charge council tax to the self-employed was approved by the council’s
Cabinet and the Mayor, John Biggs, on 10 January 2017.
Those who
are hardest hit by the measure are mostly mini-cab drivers who are managing
their living from hire purchase agreements on their cars in order to facilitate
their self-employment status. They are usually working from local mini cab
offices and complying with tough terms and conditions, for example, Uber's
rating conditions in which they are forced to keep above 4.5 star ratings from
their customers in order to remain in trade with the company; otherwise they
are barred from being on the list of its self-employed drivers.
When
Community Money Matters spoke to a number of Bengali cab drivers on Bethnal
Green Road, this is what they said:
'We are not
sure what are we to do. Our hours are unpredictable. On top of uncertainty of
working hours, we now have to pay council tax in this borough. This clearly was
not the case before. We are genuinely worried. We do need
advice!'
The council
representatives accepted the policy change may expose many residents to poverty
once a number of local advice agencies, such as Toynbee Hall, raised this
concern to them.They reassured these agencies that the council has put an
interim measure in place until they revisit a policy change at the end of this
year. They also stated that if residents are experiencing financial
difficulties they should consider applying for discretionary reduction under
section 13(A)(1)(c) of the Local Government Finance Act 1992. Once the council
has received such a notice, it's going to withdraw from taking any bailiff
action against these residents if the main reason for non-payment of the tax is
linked to affordability and self-employment.
As the councils all over the UK are falling short of money to run essential services due to the reduction in public funds from central government and austerity measures, they are not shying away from charging residents who are least well-off.
If anyone
who is having difficulties paying council tax and self-employed, Community
Money Matters urges you to seek advice from local advice services, such as
Toynbee Hall, who are monitoring the impact the policy change is having
to local residents and to give the notice required to stop any
recovery and bailiff action.
I am Ripon, a qualified Debt
advisor for the last 5 years. This is my personal blog, all
views are my own but the content is based on factual data available at the time
of writing.
POVA care is committed to employing a highly skilled staff as this gives us the confidence and ability to meet the needs of our service users and enable us to provide them with high quality care. POVA Care are registered with the Care Quality Commission (CQC) to provide the regulated activity of Personal Care. CQC are the regulators for the health and social care sector
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