Council Tax

jaxkesa

Does anyone know when you have to commence paying council tax after being a student? Is it your graduation date onwards?

Yes it is straight away. Unlike other people in my house, I finished my course this year but my contract goes on until the end of september. I got a bill asking me to pay 75% of 1331pounds from July onwards

jax

Altarf

jaxkesa wrote:

Yes it is straight away. Unlike other people in my house, I finished my course this year but my contract goes on until the end of september. I got a bill asking me to pay 75% of 1331pounds from July onwards

Which is why it is a good idea for students sharing to have some kind of written agreement about what happens in such circumstances. Does the non-student have to leave immediately, does the non-student (or students) have to accept responsibility for the whole bill, etc

You sound as if you accept that the bill is yours as you were what caused it. Less honourable people might have said 'tough' and refused to pay. When this happens things get messy when the debt collectors turn up, as people are surprised that they can be liable for what they perceive to be someone else's debt.

jennifernil

In Glasgow they expect students to start paying as soon as their course ends, which can be 4 or 5 weeks before graduation.
My student daughter owns her flat and rents out one bedroom. We have written into the tenancy agreement that if the tenant causes the property to become liable for council tax then they undertake to pay it.

kittiwoz

Altarf wrote:

If the owner does not live there, then all the tenants - even if they are students- would have equal liability for the whole amount. The council does not have to split the debt as everyone is equally liable, they can just chase who they can catch for the money.

No. I'm pretty sure you're wrong about that. It did used to be the case that if one person in a house was a non-student the house became liable for council tax and all tenants were jointly liable for the bill but I believe this was changed a couple of years ago so that it is now specifically the non-student who is solely liable for the bill. (Unless the house is an HMO when the lanlord is liable as we already established.) This is what I was told by by UMIST student services about a year and a half ago.

Altarf

kittiwoz wrote:

No. I'm pretty sure you're wrong about that. It did used to be the case that if one person in a house was a non-student the house became liable for council tax and all tenants were jointly liable for the bill but I believe this was changed a couple of years ago so that it is now specifically the non-student who is solely liable for the bill. (Unless the house is an HMO when the lanlord is liable as we already established.) This is what I was told by by UMIST student services about a year and a half ago.

Yes for HMOs the landlord is liable, but the definition for HMO for council tax is not the same as for other legislation.

If the property is not an HMO, from the link I posted:

If only one person lives in a property they will be the liable person. If more than one person lives there, a system called the hierarchy of liability is used to work out who is the liable person. The person at the top, or nearest to the top, of the hierarchy is the liable person. Two people at the same point of the hierarchy will both be liable.

The hierarchy of liability in England is:

1. a resident who lives in the property and who owns the freehold
2. a resident who lives in the property and who has a lease or who is an assured or an assured shorthold tenant
3. a resident who lives in the property and who is a protected, statutory or a secure tenant
4. a resident who lives in the property and who is a licensee. This means that they are not a tenant, but have permission to stay there
5. any resident living in the property, for example, a squatter
6. an owner of the property who does not live there.

So assuming that all the residents have the same 'residency status' then there is no relationship between being the cause of the property being taxable and being the only liable person. All residents at that level in the hierarchy will be liable.

kittiwoz

Yeah, I read the link, but it doesn't actually adress the issue of disregarded persons. I agree it is reasonable to assume on that basis that its is irelevant to the issue of liability and that residents with equal residency status will therefore be jointly liable but I still don't think that it is the case. I know it used to be because I considered moving in with some non-students at one point but was put off by the council tax. However as I say I was specifically told by UMIST student services that that has changed so that students, being disregarded persons, will not be liable for the council tax on the house incurred because one or more residents is a non-student. This is supported by the fact that the council tax bill is in the name of the non-student and the non-student alone. If anyone who is currently affected by this issue could go and ask their student support office and post the answer that would be helpful.

Bossyboots

This link http://www.sussex.ac.uk/residentialservices/documents/council_tax_and_student_liability.doc clearly states that full time students are exempt from council tax liability. It doesn't give any ifs, buts or maybes, it states they are exempt.

Therefore in the heirarchy of who pays the council tax, even if the student owned the property, it must surely be any other tenant(s) who are not exempt in equal shares.

kittiwoz

According to the link given by Bossyboots:
"Full-time students living with non-students (or part-time students) from 1st April 2004 are exempt from any council tax liability, however, they are jointly liable with non-students (or part-time students) for any period before that date."

This agrees with the information I have relayed from UMIST student services. The info doesn't discuss HMOs though so it doesn't contradict the info provided by Altarf that states when the house is an HMO (which would be the case when a student is both resident and landlord) then the landlord is liable for any council tax payable on the property.

sarkky1

i am in my third year at college,the first year being a NQ certificate,cos i had been away from school for 15 years and wanted an easy time of it ,lol...anyway, last year which was a HNC course then this year which is a HND i am only entitled to 1/4 off my council tax.but it makes me exempt for 9 months,and pay the full for the other 3 months,,,and,what i normally do is ,when i join course i get a letter to take to council and then they work it out for me .....but if they are wrong.i'd love to know,,,,ps .i live in dundee and i am married,a home owner,my hubby works full time,and we got 3 kids,,,any advice thanks.x.x.

jaxkesa

Which is why it is a good idea for students sharing to have some kind of written agreement about what happens in such circumstances. Does the non-student have to leave immediately, does the non-student (or students) have to accept responsibility for the whole bill, etc

Yes for HMOs the landlord is liable,

I think the property in which I live is an HMO. I rent the room I sleep in and share a kitchen, 'lounge' and bathroom. It is only my name on the contract I have signed. But the council have still sent me the bill