Form

QRC4: quarterly return of Council Taxes and non-domestic rates - validation notes

Updated 12 April 2024

Applies to England

The QRC4 is subjected to a strict validation process as detailed below. On receipt of your form we carry out a number of checks to satisfy ourselves that the form has been completed correctly. In order to do this, we include validations in the form that should be reviewed before the form is submitted. These validations consider whether the data on QRC4 2023-24 varies significantly from that provided on either the QRC3 2023-24 or QRC4 2022-23 (where applicable) and if they do, we seek an explanation for the variance. We have considered the impact of Covid in setting these validations, so some parameters have been set wider than usual.

The QRC4 has four sections. Sections 1 & 2 collect data on the receipts of council tax and national non-domestic rates. Section 3 collects data relating to localised council tax support. Section 4 collects data that will be used to support the loss of income guarantee.

The QRC4 form in DELTA has in-built validation checks and these clearly identify areas where further information is required. Local authorities are asked to complete the explanation boxes with reasons for the variance, where applicable. This then helps us explain the figures that are published.

We will contact the named local authority contact if a validation has flagged and no comment or an inadequate comment has been provided. An inadequate comment is one which provides little explanation as to the reason of the change, such as ‘OK’, ‘It’s correct’ or ‘It’s gone up or down’. An adequate comment will provide some evidence as to why the figures are correct, and so will aid our understanding of changes.
If no validation box appears, then the change in data is within our validation boundaries. However, we still may contact you if we believe there are other issues.

Specific details on the validation checks on each part of the QRC4 are described in this document.

General validation checks

Please ensure the following before returning the form:

Certification – Once the form has been completed, the data provider should submit the form for certification. This will then notify the CFO/Section 151 Officer to certify the form. Where possible, the data provider and certifier should be two different people.

Calculations – Please check that all calculations are correct. In addition, please ensure that the collection rate figures calculated at Line 5 columns 1 & 2 do not exceed 100%.

Validation checks

Please note that we refer to receipts collected in specific quarters throughout the following paragraphs. Reference is as follows:

Quarter 1       -           Receipts collected between April and June

Quarter 2       -           Receipts collected between July and September

Quarter 3       -           Receipts collected between October and December

Quarter 4       -           Receipts collected between January and March

Section 1: Part A - Council Tax

Comparisons with QRC4 2022-23

Test 1: Prepayments & cash receipts

We check the prepayments & cash receipts collected in previous years in respect of 2023-24 charges (line 2) with the information shown on line 7 of QRC4 2022-23 (i.e. the estimated receipts for 2023-24 charges, received before 1 April 2023 (if any) and other credits carried forward on 31 March 2023).

We would generally expect the prepayments & cash receipts figure on QRC4 2023-24 to be the same as, or less than (due to refunds), the information provided on QRC4 2022-23. But we do realise that this is not always the case. An explanation will be required where the information has changed by more than 10% (either up or down) and there has been an actual change of £250,000 or more.

Test 2: In-year Collection Rates

We compare 2022-23 collection rates with 2023-24 collection rates (line 5) and request an explanation for variances of 1.5 percentage points or more (either up or down) between the two financial years.

Test 3: Collection of arrears

We compare the amount of arrears collected in 2023-24 as reported in line 6 with the figure reported in line 6 of the QRC4 2022-23 form. An explanation is required where the amount of arrears collected in 2023-24 has changed by more than 20% (either up or down) over that for 2022-23 and the actual difference is £500,000 or more.

Test 4: Total estimated receipts of Council Tax

A comparison is made between the total collection of receipts in 2023-24 irrespective of the year to which it relates (line 8), with the total collection of receipts in 2022-23 (again, irrespective of the year to which it relates). An explanation will be required where the information has changed by more than 7% (either up or down).

Section 1: Part A - Non-domestic rates

Comparisons with QRC4 2022-23

Test 1: Prepayments/cash receipts

We check the prepayments & cash receipts collected in previous years in respect of 2023-24 charges (line 2) with the information shown on line 7 of QRC4 2022-23 (i.e. the estimated receipts for 2023-24 charges, received before 1 April 2023 (if any) and other credits carried forward on 31 March 2023).

We would generally expect the prepayments & cash receipts figure on QRC4 2023-24 to be the same as, or less than (due to refunds), the information provided on QRC4 2022-23. But we do realise that this is not always the case. An explanation will be required where the information has changed by more 10% (either up or down) and there is an actual difference of £500,000 or more.

Test 2: In-year Collection Rates

We compare 2022-23 collection rates with 2023-24 collection rates (line 5) and request an explanation for variances of 3 percentage point or more (either up or down) between the two financial years.

Test 3: Collection of arrears

We compare the amount of arrears collected in 2023-24 as reported in line 6 with the figure reported in line 6 of the QRC4 2022-23 form. An explanation is required where the amount of arrears collected in 2023-24 has changed by more than 30% (either up or down) over that for 2022-23 and there is an actual difference of £2,500,000 or more.

Test 4: Total estimated receipts of Non-Domestic Rates

A comparison is made between the total collection of receipts in 2023-24, irrespective of the year to which it relates (line 8), with the total collection of receipts in 2022-23 (again, irrespective of the year to which it relates). An explanation will be required where the information has changed by more than 30% (either up or down) or where the change is negative.

Section 1: Part B - Council tax

Comparisons with QRC3 2023-24

Tests 1 to 3: Quarter comparison

We compare quarter 1, 2 & 3 data from Part B on QRC4 2023-24 with the corresponding data for each of the quarters reported on QRC3 2023-24. An explanation will be required where the information has been changed.

Comparisons with QRC4 2022-23

Test 4: Quarter 4 receipts

We compare the collection of receipts in quarter 4 2023-24 (line 12) with the collection of receipts in quarter 4 on the QRC4 2022-23 form. An explanation will be required where the information has changed by more than 5% (either up or down) and there is an actual difference of £1,000,000 or more.

Section 1: Part B - Non-domestic rates

Comparisons with QRC3 2023-24

Tests 1 to 3: Quarter comparison

We compare quarter 1, 2 & 3 data from Part B on QRC4 2023-24 with the corresponding data for each of the quarters reported on QRC3 2023-24. An explanation will be required where the information has been changed.

Comparisons with QRC4 2022-23

Test 4: Quarter 4 receipts

We compare the collection of receipts in quarter 4 in 2023-24 (line 12) with the collection of receipts in quarter 4 on the QRC4 2022-23 form. An explanation will be required where the information has changed by more than 5% (either up or down) and there is an actual difference of £2,000,000 or more.

Section 2: Council tax

Comparisons with QRC4 2022-23

Test 1: Change in arrears

We compare the total council tax arrears as at 31 March 2024 (line 24) with the total council tax arrears as at 31 March 2023 taken from line 24 of the QRC4 2022-23. An explanation is required where the collection of council tax arrears in 2023-24 has changed by more than 15% (either up or down) and there is an actual difference of £2,000,000 or more over that for 2022-23.

Test 2: Court costs and admin costs

We compare the court costs and administration costs (line 25) in the QRC4 2023-24 with the court costs and administration costs (line 25) in the QRC4 2022-23. An explanation is required where the court costs and administration costs in 2023-24 have changed by more than 10% and the actual difference is £250,000 or more.

Test 3: Court and admin costs as a percentage of total arrears

If the court costs and administration costs (line 25) are more than 10% of the total council tax arrears as at 31 March 2024 (line 24) we require an explanation.

Test 4: Write-offs

We compare the change in the total amount written off in 2023-24 (irrespective of the year to which it relates) (lines 18, 19 and 22) and the comparable figure from the QRC4 2022-23. We only need a comment if the change is greater than 25% (either up or down) and the actual difference is £500,000 or more.

Section 2: Non-domestic rates

Comparisons with QRC4 2022-23

Test 1: Change in arrears

We compare the total non-domestic rates tax arrears as at 31 March 2024 (line 24) with the total non-domestic rates arrears as at 31 March 2023 taken from line 24 of the QRC4 2022-23. An explanation is required where the collection of non-domestic rates arrears in 2023-24 has changed by more than 20% (either up or down) over that for 2022-23 and there is an actual difference of £2,000,000 or more.

Test 2: Court costs and admin costs

We compare the court costs and administration costs (line 25) in the QRC4 2023-24 with the court costs and administration costs (line 25) in the QRC4 2022-23. An explanation is required where the court costs and administration costs in 2023-24 have changed by £50,000 or more.

Test 3: Court and admin costs as a percentage of total arrears

If the court costs and administration costs (line 25) are more than 5% of the total non-domestic rates arrears as at 31 March 2024 (line 24) we require an explanation.

Test 4: Write-offs

We compare the change in the total amount written off in 2023-24 (irrespective of the year to which it relates) (lines 18, 19 and 22) and the comparable figure from the QRC4 2022-23. We only need a comment if the change is greater than 25% (either up or down) and there is an actual difference of £1,000,000 or more.

Section 3: Localised Council Tax Support (LCTS) form validation checks

Comparisons with QRC3 2023-24

Tests 1 to 3:

We compare the total number of claimants in receipt of a reduced council tax bill (line 3) for quarters 1, 2 & 3 in QRC4 2023-24 with the corresponding data for each of the quarters reported on QRC3 2023-24 (where available). An explanation will be required where the information has been changed.

Comparisons with Quarter 3 data

Test 4:

We compare the number of pensioner claimants for quarter 4 in QRC4 2023-24 with quarter 3 in the QRC4 2023-24. An explanation is required if they have changed by more than 2% and there is an actual difference of 10 or more.

Test 5:

We compare the number of working age claimants for quarter 4 in QRC4 2023-24 with quarter 3 in the QRC4 2023-24. An explanation is required if they have changed by more than 3% and there is an actual difference of 10 or more.

Test 6:

We compare the total number of claimants for quarter 4 in QRC4 2023-24 with quarter 3 in the QRC4 2023-24. An explanation is required if they have changed by more than 5% and there is an actual difference of 10 or more.