Why Have I Received A Council Tax Investigation Letter?

A council tax investigation letter is received when the council has reason to believe that the recipient is guilty of council tax fraud. Through this blog post, we aim to learn the reasons and consequences of receiving a council tax investigation letter, how to tell the difference between an authentic letter from authorities and protect oneself from scams as well as what happens once the council starts to investigate a fraudulent (or potentially fraudulent) case. 

Why Have I Received A Council Tax Investigation Letter?

The main reason for receiving a council tax investigation letter is the incidence of council tax fraud by providing misleading information to the authorities so that one may get a discount on their council tax bills. If an individual is found to be guilty of any of the following actions, they will be investigated for council tax fraud:

  • providing incorrect or incomplete information to avail council tax discount or complete exemption
  • availing of the single occupancy council tax discount of 25 per cent when there are other adults occupying the residence
  • claiming a student discount or exemption when you are not enrolled in full-time education
  • stating a property to be unoccupied when it is not
  • deliberately choosing not to update the council authorities of a change in circumstances that may affect the council tax reduction one may be in receipt of

If someone receives a council tax investigation letter, it means that they are being suspected of council tax fraud and are being asked to appear for an interview with the council authorities to answer their questions regarding the matter. If the fraud is proven, the resident can be charged with a penalty or even a prison sentence. If someone has received such a letter by mistake, they should still attend the interview and carry all relevant documents to prove their innocence.

In addition to council tax fraud, the council can also investigate housing fraud cases which include the following:

  • a false declaration such as having children in the household
  • subletting the property without the council’s permission
  • continue living in the property after the owner’s death (without having the right to do so)

However, there have been incidents in recent times when residents have received fake council tax investigation letters in which their bank details are being asked for. It is essential to contact one’s council authorities in such a case and be wary of such scams. 

An authentic council tax investigation letter will include the following:

  • name and logo of the local council
  • the complete and correct address of the recipient
  • council tax number of the recipient
  • the complete and correct the name of the recipient
  • date and time for an interview with council authorities
  • list of documents required in the meeting (if any)

Recipients will not be asked to make payment for any penalty charges in a council tax investigation letter nor will they be asked to provide any bank details. 

On the other hand, a fake council investigation letter will not mention complete personal information (as it may not be available to the scammer) and will generally ask for a payment, bank account details or certain financial information of the recipient.

What Happens When Council Tax Fraud Is Reported?

If you report someone for council tax fraud, the authorities conduct an independent investigation on their own to confirm the information that you have provided. Once they have substantial evidence against the defaulting party, they take action by sending them a notice that they have been found guilty of fraud.

This notice may also contain actions to be taken against them; which may vary from a fine to spending time in prison. The severity of the consequences will depend on the scale of fraud committed and its impact on the council tax discount that the claimant was privileged with.

Council Tax fraud mainly occurs when someone does not declare a change in their circumstances so as to continue receiving council tax discounts. For instance, a council tax occurs when someone is claiming a council tax discount such as a single-occupancy discount of 25 per cent even though there is more than one adult occupying the premises. 

What Happens When Council Investigates For Fraud?

As the council authorities commence their investigations for fraud, the first step is that they will conduct a thorough search for evidence in support of their suspicion of fraud. This includes cross-checking the suspect’s data through credit reference agencies and access to their bank statements, mortgage accounts and bills for data verification.

Once the authorities have gathered sufficient evidence, they will then ask the suspect to appear for an “interview under caution”. This happens when the person in question is suspected of council tax fraud or someone (usually from their neighbourhood) had reported them to the authorities. Whether or not one is guilty, it is advisable to take support from a legal advisor at this stage. The suspect does not have the option of a non-appearance for this interview.

If there is sufficient evidence against the suspect, they will be asked by the council authorities to pay a penalty. It is best to clear one’s dues as in the other option, one may be taken to court for recovery of dues. In addition to this, you may lose any benefits (for a period of up to 3 years) that you were previously receiving.


If someone receives a council tax investigation letter, it means that they are being suspected of council tax fraud and will be asked to appear for an interview with the council authorities. Council tax fraud is a criminal offence. Therefore, depending on the seriousness of the matter, the recipient may face legal action as a result of fraudulent actions.

FAQs: Why Have I Received A Council Tax Investigation Letter?

What happens if you lie about council tax?

If you like about your circumstances to avail yourself a council tax reduction and your fraud is reported to the authorities, you will be faced with a penalty, a criminal record or even a prison sentence as council tax fraud is a criminal offence.

What happens if you don’t pay council tax?

Council tax debt is a priority debt which must be paid back at the earliest. If someone does not pay council tax bills on purpose, they can be taken to court and face legal action. 

What happens when you report a benefit cheat?

If someone has been reported as a benefits cheat, there will be an inquiry by the DWP. Once proven guilty, the benefits cheat may lose their claim, be prosecuted, or be faced with a penalty. The severity of action against them depends on how serious their action was.

How do I report illegal subletting in the UK?

To report illegal subletting in the UK, you can inform your local council authority, the Unauthorised Occupation Team or use the Whistleblower Helpline. In either case, you can do so anonymously.

How long can someone stay without paying council tax?

Usually, council tax exemption may only be applicable for a short period; perhaps up to six months in case the premises are not occupied or remain unfurnished. However, occupied properties are not exempt from council tax bills. 

Who is eligible for council tax payment?

Anyone who is more than 18 years of age, owns or rents a property is eligible for council tax payments. A full council tax is based upon two adults living on the same premises.


Council Tax fraud

If we suspect you of benefit fraud – Preston City Council

Council tax fraud – Reporting fraud and how we deal with it

Council Tax Scam Alert

Council housing fraud – GOV.UK