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Friday 15 July 2022

Contribution in Lieu of Council Tax - REBATE FAQs



CONTRIBUTION IN LIEU OF COUNCIL TAX (CILOCT) REBATE - FREQUENTLY ASKED QUESTIONS

What is the Council Tax rebate?

HMG announced on 3 Feb 22 that qualifying households would receive a £150 rebate of Council Tax (CT) to assist with the increase in the cost of living caused by sharp rises in energy bills. The council tax rebate will provide a payment of £150 to households living in CT bands A to D. Local councils are responsible for determining who is eligible and making payments.

To ensure that SP are not disadvantaged by their Service the framework of the national policy was used to devise a MoD scheme to mirror the intent for those paying CILOCT.

Will I be eligible for the rebate?

SPs paying for Service Family Accommodation (SFA) and Substitute SFA (SSFA) rates of CILOCT on 1 April 2022, for Type A, B, C, D, DS, 5 or 5S accommodation are eligible.


Do I have to apply for the rebate?

No, it will automatically be paid to the SP who are paying CILOCT through their pay.


When will I receive it?

You will receive it in the July 2022 payroll, no later than 31 July 2022.

Do I have to repay the £150?

No, it is a one-off payment.

How do I know what Type of SFA I am in?

The information is recorded on JPA and is on your pay statement and if you do not know how to find it, contact you unit administration staff for assistance.

Information on SFA Type can be found at https://modgovuk.sharepoint.com/sites/defnet/HOCS/Pages/JSP464.aspx

I am not eligible, why?

Those not eligible are SP not paying for Type A, B, C, D, DS, 5 or 5S as at 1 April 2022.

I was in an eligible SFA on 1 April 2022 but since have moved into a private residence; am I still eligible for the rebate?

Yes, providing you met the eligibility criteria and are still currently serving.

What if I was not paying for an eligible SFA Type as at 1 April 2022 yet moved and was shortly afterwards; will I receive the rebate?

No, unfortunately not. Similar to the national scheme it is determined as at 1 April 2022.

What if I am occupying an SFA that is considered ineligible, yet paying for a SFA that is eligible; can I get the rebate?

The methodology is based on what SFA Type you are paying for as at 1 April 2022, not what you are residing in. You will gain the rebate if you meet the eligibility criteria

I have read the information and believe I am eligible but did not receive the £150 in the Jul 22 payroll; who do I seek support from?

You should contact your unit Administrators who manage your pay in the first instance and if required they can escalate to the sS Housing points of contact.

Where can I get further information?

Government information can be found at:

https://www.gov.uk/council-tax-bands www.gov.uk/government/publications/government-support-for-the-cost-of-living-factsheet/government-support-for-the-cost-of-living-factsheet

Information on SFA Type can be found at:

https://modgovuk.sharepoint.com/sites/defnet/HOCS/Pages/JSP464.aspx

Will I be taxed on my rebate of £150?

No, you will not be taxed and will receive a full £150 as technically this is a refund of a charge for which you have already paid tax. This mirrors the payments made under the main council tax rebate scheme. They too are non-taxable, and you don't need to inform HMRC of the amounts received on your Self-Assessment tax returns.

I am in receipt of tax credits, will my rebate impact those credits?

No, as these payments are non-taxable, they don't impact tax credits.

I am a Service Leaver (SL) yet did pay CILOCT on 1 Apr 22 for an eligible SFA; will I be reimbursed?

Yes, providing you have not changed/closed bank accounts, you will receive the rebate as your payroll account is still live for a period of time after you leave the Services.

Why are personnel living in Single Living Accommodation (SLA) not eligible for a rebate?

The three daily rates of CILOCT for those living in SLA are very low. Moreover, those in SLA will not be subject to the same cost of living increase, caused by sharp rises in energy bills and therefore fall outside of the scheme intent.

Are Partnering Nations / Foreign Exchange Officers who occupy SFA in the UK eligible for the rebate?

No, as they do not pay CILOCT and therefore are outside the intent of the scheme.

Why were MOD bandings used instead of council tax bands?

All UK SFA is categorised by the Combined Accommodation Assessment System (CAAS) on JPA and not civilian council tax banding. The methodology replicates the intent of the national scheme as closely as possible.