Sole occupant council tax but having a lodger?

laughingcow81

Hi all,

Just wanted to run something by you.

My colleague at work is taking over his parent's house (they are retiring and moving away) and is taking in a friend as a lodger, who will be paying him £450 a month in rent.

He has phoned the council to transfer the council tax in his name, however he has told them he is the sole occupant, therefore claiming a 25% reduction (I think that's right?).

I've told him that this is wrong, if he's getting his friend to live with him as a lodger he should be paying the whole amount of tax on the property, but thinking about it am I correct here?

not_tonight_josephine_2

You're correct - he's not entitled to the single person discount (unless I think the other occupant is a student, which I'm guessing is not the case?)

laughingcow81

That is what I thought - no, the other person is not a student, he works full time.

Well then, I'll tell him that he shouldn't do that and see what happens.

thanks!

not_tonight_josephine_2

One other thing I forgot to say - I assume that this lodger lives there permanently (ie isn't just a weekday lodger?). If he's only there some of the time it's possible he may be considered resident elsewhere for council tax purposes

laughingcow81

Yes he will be living there permanently, however he comes from Barnsley so is probably still on the electoral roll there.

However, if they do get found out, what happens?

Will they be fined, or just have to pay the extra?

BitterAndTwisted

It's not possible to say because each council has a slightly different policy. But what is certain that should your pal be found out he will probably be prosecuted for fraud and I doubt anyone would want any current or future employer to see that on their record. And all for the sake of a few hundred pounds a year when they're getting £450 a month in rent. NOT WORTH THE RISK!

laughingcow81

Thank you - I have warned him, and have told him the consequences of his actions should he go through with it, so I have tried.

It's good to have some back up!

laughingcow81

Well in all fairness he hasn't actually done it yet...the council are sending him a form to fill in as the payments don't start again until April. I'll keep on at him - seems a bit underhand to go direct to the council straight away, especially as he hasn't actually done anything yet.

If he insists on de-frauding his council then I might take action...

housesitter

Well if he's daft enough to keep rubbing your nose in it and actually not doing it then I suppose he's asking for it, but then again, you stand to get a lot of flack at work for having reported him depending on your work place.

Plus the council would have to prove that there are two people living there.
As is suggested, he might not be a permenant resident. I'm not sure what is calssed as permenant residence, but recall that you can avoid council tax at a caravan park so long as you only spend 50 weeks a year in the caravan.

housesitter

Whilst the council can mess you around as much as they like and you can pretty much do nothing about it (our bins are heading to their 4th week without collection) just remember if you don't pay council tax they have a limitless budget with which to pursue you.
The last thing they want is someone finding a way out of paying as it will just open the flood gates to everyone else who doesn't agree with the wastage and ineffectual uses of the money shaken from us all.

Fire_Fox

housesitter wrote: »

Whilst the council can mess you around as much as they like and you can pretty much do nothing about it (our bins are heading to their 4th week without collection) just remember if you don't pay council tax they have a limitless budget with which to pursue you.
The last thing they want is someone finding a way out of paying as it will just open the flood gates to everyone else who doesn't agree with the wastage and ineffectual uses of the money shaken from us all.

Has it escaped your notice that half the country has been snowed in for weeks? Or that many companies have been so short staffed that they have shut down operations? Or that there have been several bank holidays shifting the collection schedule? Have you bothered to ring waste management at the local council and discuss the situation? Have your neighbours banded together to clear the ice manually, or offered to take your refuse up to the end of your street in order for it to be collected? What evidence do you have that the council is wasting money?