Significant Counci Tax worries

OneTime

Hello,

basically I have been renting a flat from a family member (who lives abroad) for around 8 years. I just pay a flat amount for all bills and rent (no contract).

I have in this time not been on the electoral register or council tax register (anywhere). My relative has been named on council tax (as a single person) and taken care of the bill (it has always been paid) all the time. They have for some reason always been reluctant to take there name off the bill.

For the first 5 years I lived in it myself, so although I was not named, it was still a single occupancy so don't think there is a problem re the amount paid.

For the last 3 though my partner has stayed with me. For one reason or another we have never sorted the situation.

I won't make excuses as to why, but it has taken me until now to start to get really concerned about this situation, but I want to sort it. My question are:

1) Am I in serious trouble for not being on the council tax register for so long?

2) If my relative's name was to come off and mine and my partner's to go on (or even add ours and keep my relatives'), would there be an issue with where we had been in the last 8 years? On the council tax registration forms they ask for previous addresses but I don't know if it is mandatory to provide this.

3) If I add us on now, should things be easy or are we looking at financial/legal trouble given that there are three years where two of us have stayed here?

Thanks for any advice given concerning this,

cheers

cattie

As long as council tax is being paid on the property, it doesn't matter that it's in the landlord's name & not yours.

However, as your partner is now living with you it will be fraud to continue to receive a single persons discount. You need to notify the council & also your relative about the situation. It could stay in your relatives name but without the single persons discount, or you could have it changed into your name, whichever you/your relative prefer.

Yes they usually ask for previous addresses but to avoid trouble you could perhaps put parents/relatives address, as long as it's not somebody claiming single occupancy discount. Or perhaps you could say you lived abroad. They usually ask for previous address just to ensure that you don't owe council tax on another property you occupied. It may not even be mandatory to put a past address. If the council tax stayed in your relatives name but no longer as a single occupant there would be no need for a previous address to be given.

You should get yourself on the electorial roll too as if you ever wanted to get credit, establishing yourself as a resident is important.

Jowo_2

Your relative's reluctance to take themselves off the bill is perhaps due to their wish to know it gets paid or could be part of their desire to evade tax on the rental income and CGT by making it look like they are resident there.

If it's the latter, they won't be happy with any changes you make but the current situation does open you up to being investigated for fraudulently claiming a single person's discount.

Should your relative stop paying the bill, you would be liable for it, simply because the hierarchy of liability (which your local council website should have) generally makes it the occupants responsibility to pay.

My understanding is that it is compulsory for people to register on the electoral register though rarely enforced. Again, if your relative is seeking to conceal their landlord status, they won't be happy with anything that indicates to the authority that they are not there.

Forgive me for making assumptions about your relative, if this isn't the case.

mealone

OneTime wrote: »

Hello,

basically I have been renting a flat from a family member (who lives abroad) for around 8 years. I just pay a flat amount for all bills and rent (no contract).

I have in this time not been on the electoral register or council tax register (anywhere). My relative has been named on council tax (as a single person) and taken care of the bill (it has always been paid) all the time. They have for some reason always been reluctant to take there name off the bill.

For the first 5 years I lived in it myself, so although I was not named, it was still a single occupancy so don't think there is a problem re the amount paid.

For the last 3 though my partner has stayed with me. For one reason or another we have never sorted the situation.

I won't make excuses as to why, but it has taken me until now to start to get really concerned about this situation, but I want to sort it. My question are:

1) Am I in serious trouble for not being on the council tax register for so long?

2) If my relative's name was to come off and mine and my partner's to go on (or even add ours and keep my relatives'), would there be an issue with where we had been in the last 8 years? On the council tax registration forms they ask for previous addresses but I don't know if it is mandatory to provide this.

3) If I add us on now, should things be easy or are we looking at financial/legal trouble given that there are three years where two of us have stayed here?

Thanks for any advice given concerning this,

cheers

What benefits does your family member claim from that address?

Macro_3

Hmmm, could they be using the address to retain eligibility for benefits/nhs treatment etc?

CIS

Should your relative stop paying the bill, you would be liable for it, simply because the hierarchy of liability (which your local council website should have) generally makes it the occupants responsibility to pay.

In theory the relative could possibly inform the council tomorrow and reclaim every penny they paid for the last 8 years.

Whether the relative pays or not the actual person liable for the council tax is the occupier of the property unless you could argue that the relative retains the right to return to the property and thus retains the property as their sole or main residence (going to be difficult in this case).

It is your responsibility to inform the council of the belief that you are the liable person and that the discount given on the property is incorrect.

OneTime

Thanks for all the replies.

After reading them and considering the situation, I am going to write to the council and explain that I have been here for 8 years, 3 of which I have shared with my partner. So for the first 5 council tax was paid for a single person - though it wasn't me who paid, the relative who did was not resident there so it was still a single occupancy. So I am hoping that part will be ok.

For the last 3 years I will just need to arrange to pay the additional 25%. My relative will help me with this.

I think this is the best course of action?

Would like to hear opinions, though I reckon I am going to have to do it because there isn't any way around it withough risking getting into more trouble.

cheers again

OneTime

mealone -

sorry I forgot to answer your question - no benefits are claimed by my relative for this address.

cheers

mealone

OneTime wrote: »

mealone -

sorry I forgot to answer your question - no benefits are claimed by my relative for this address.

cheers

Sorry but your predicament sounded a lot like a case featured on TV, I cant remember the name of the program.

Telling the whole truth is always the best policy, you`ll get a big bill but once thats sorted out you neednt worry about being found out.

OneTime

Hi,

yeah I agree. I phoned the council today and have drafted a letter. The woman on the phone was fine. She say's that the previous payments for the whole 9 years, can be transferred from my relative's account to a new account, opened in my name, so the single person't aspect is fine (on receipt of proof that my relative was abroad). She said they would then look at the last 3 years and make a bill as necessary (she said I "might" have to pay for it - though I expect I will).

I was also a student for 9 months during those 3 years so I hope they will take that into account, also I was on a training allowance for another 10, which can bring a reduction.

Thanks for the input,

cheers

CIS

also I was on a training allowance for another 10, which can bring a reductio

Unless you met the requirement for an apprentice disregard you wont get any reduction for this.