Help! Changing from business rates to council tax, and question about backdated taxes

patheticshark

Hi all,

I've done a bit of searching but can't find any advice on this so if anyone can help I'd be really grateful.

I recently moved into a warehouse flatshare with some people who had lived there for a year or so. They said they weren't paying council tax as the property wasn't classed as a residential property but a workspace - they had asked the landlord about having to pay business rates but he had apparently just said it would be fine. They didn't include anything about this in the contract though. Nobody in the property is actually working from there - it's just used for living in.

A few weeks ago we got a letter from the council asking for about £8000 in business rates - nearly £4000 backdated for the last year and then payments of about £450 per month from now onwards.

What we need to do now is get this changed from business rates to council tax because there isn't any commercial activity going on in the property. I have four questions, if anyone could advise on any of them that would be great.

1. Does anyone know the quickest and easiest way of getting this changed? I'm assuming we need to speak to the council tax department of the local council and get them to come round to evaluate the property... or would it be the people responsible for commercial properties? (I know I can just call them up but it would be useful to know the easiest route if anyone has experience of this).

2. Only one tenant's name is on the contract. Will the council speak to me, even though my name isn't on the contract, if I can provide proof of address? Or will they insist on speaking to the person whose name is on the contract? (He is really busy so it would be preferable for me to handle this if possible.)

3. Obviously we are expecting to have to pay backdated council tax rather than business tax. Unfortunately because there is only one person's name on the contract he is responsible for all of this. There are 4 people in the flatshare; two (including him) have been there from the beginning and 2 (including me) have moved in more recently. 2 others left a while ago. Are there any solutions for what to do when you have a backdated council tax bill but some of the tenants no longer live in the property and their names were never on the contract? Obviously the previous tenants are not likely to be willing to pay so is the guy whose name is on the contract going to have to cover it or risk ending up in court?

4. (related to 3) I am assuming the backdated council tax amount is going to be pretty massive - will they demand this in one lump sum or is it possible to negotiate installments? None of us have much disposable income so we are getting a bit worried about how to pay this.

Any advice would be much appreciated.
Thanks
patheticshark

bingibongi

Why were business rates being levied in the first place - is there even planning permission for it to be used for residential purposes ?

PasturesNew

It's worse than that ... you are illegally living in commercial premises. The premises will need a Change of Use planning application to be submitted by your Landlord - and approved.

Then it gets worse. There are SIX of you living there - a HMO. This is another level of ineptitude by your landlord. IF it were a house, he'd have had to have it declared as a HMO, House of Multiple Occupancy, which comes with a whole raft of legal and safety issues (e.g. smoke detectors/alarms, loos, showers, kitchen space and equipment).

Fire_Fox

You are illegally subletting an illegal dwelling but there is no proof you live there? I'd move out quickly and not leave a forwarding address! I definitely wouldn't contact the council and give them your name.

lincroft1710

Whatever the legality of the conversion, as the building is being used as a dwelling, in Council Tax law it would be subject to CT rather than business rates.

This should have been sorted out by your landlord, but as it is an illegal conversion he may not have been too keen.