The ‘Homes for Ukraine’ scheme launched in March. Under the scheme, those who accommodate refugees of the conflict in Ukraine are given a monthly ‘thank you’ payment of £350. But what are the implications of this payment on taxpayers and benefit claimants?
Is the payment taxable?
The government has confirmed that no tax or National Insurance contributions (NICs) will be due on the £350 payments. New law confirming this will be brought in soon and it will apply to all £350 payments made under the Homes for Ukraine scheme.
This means that the £350 does not need to be declared on your Self Assessment tax return.
Does the scheme payment affect my council tax?
No. Ukrainian refugees who are in the UK under the Homes for Ukraine scheme are disregarded for the purposes of council tax discounts.
If you claim a single person discount for council tax purposes, you can continue to claim this discount if you host under the Homes for Ukraine scheme.
If you own an empty property then you may be eligible for a discount on the council tax bill for that property. If the property is occupied under the Homes for Ukraine scheme, then this discount would not be affected.
If you own a property which is exempt from council tax, then hosting a Ukrainian refugee in that property should not affect that exemption.
If you receive a reduction in your council tax bill due to your level of income, your local council should disregard the £350 thank you payments – although if you are in this situation, you should confirm the position with your local council.
Will payments affect benefits?
No. If you are receiving benefits, the £350 will not be counted as income for the purposes of calculating benefit entitlement.
For 12 Months
The scheme will seemingly run for 12 months - at which point the £350 payments will cease.
More information about the scheme can be found on the gov.uk website.
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