Council tax band revalued at higher band, now council want backdated tax!

[Deleted User]

In August 2009, me and two friends moved into a flat in London. I then moved out six months later to move in with my boyfriend and another girl took my room.
Fast forward two years and after an anonymous tip-off (probably a failed check and challenge attempt!) Hackney Council have decided that the flat was in too low a council tax band, so they are demanding a total of £237 to cover underpayment of council tax from the beginning of the tenancy in August 2009.
How can we be liable for two years of underpayment when they have only just changed the CT band? And how can I be liable to pay CT for a flat I moved out of 18 months ago? Of course, the girls who still live there are my friends so I will pay if I have to, but I find it very bizarre that the council can just demand this money when the error was theirs!
Anyone else been in a similar situation? What was the outcome?

lincroft1710

Firstly it is the Valuation Office Agency (part of HMRC) who are responsible for the bands, not the council.

Secondly band increases where an error was made are not backdated as Council Tax law does not permit this. Check the effective date of the rebanding by visiting VOA website and looking at the Council Tax List entry for the flat.

http://www.voa.gov.uk/cti/InitS.asp?lcn=0

Thirdly check with the council that they are billing you only for the actual time you spent at the flat.

[Deleted User]

Thanks for your help, lincroft1710. I have been speaking to the VOA and found out some more information. Now I'm even more confused!

Apparently, prior to September 2008, the flat (which is street number 10A) was leased by the same people who also leased the shop below (street number 10), so they paid business rates on the shop and qualified for a discount on the residential portion, thus the flat was in Band C. After September 2008, the shop and flat were leased separately, so the flat should have been changed to Band D at the same time as it no longer qualifid for the business discount. However after speaking to a VOA valuer, I discovered that the request to revalue the property was not made until 24th June 2011 (nearly 3 years after the property changed!) and not validated until the 24th July 2011. Why did it take so long for the council to get round to this, and can they ask us to backpay?! It doesn't seem fair to me!

And the plot thickens! On the VOA website you directed me to, Flat 10A doesn't appear at all, whereas number 10, the shop, does. But if number 10 is a shop then I think I'm right in saying it shouldn't have a council tax band at all because it's a business premises and should be paying business rates not council tax? So where and what is the band for the flat?! Interestingly, the council also have us down as living at number 10, not 10A as well! Something is clearly not right here!

CIS

I discovered that the request to revalue the property was not made until 24th June 2011 (nearly 3 years after the property changed!) and not validated until the 24th July 2011. Why did it take so long for the council to get round to this, and can they ask us to backpay?! It doesn't seem fair to me!

The council have no say in the matter and can only change the band of the property once the VOA have given them official notification. They are obliged to bill at the band from the date given by the VOA. Its the same the VOA lower a band, the council have to adjust retrospectively and refund as appropriate.

so they paid business rates on the shop and qualified for a discount on the residential portion, thus the flat was in Band C.

There wouldn't be a 'business discount' however you'd likely find that the property was valued differently because of the fact it was part of the shop premises.

And the plot thickens! On the VOA website you directed me to, Flat 10A doesn't appear at all, whereas number 10, the shop, does

Number 10 appears to be the official address and calling it 10A appears to be only an attempt to differentiate the shop and flat (you'd be surprised how often people give a property a number that isn't that recorded officially by the VOA).

The shop would have a separate listing on the Business Rates List but that address can be pretty obscure - you'll often see addresses that are more a description of their physical location rather an actual address.

lincroft1710

There is little I can add to CIS's post.

If a shop and flat are occupied together, the CT band for the flat will reflect the fact that it is part of a larger property, which is predominantly commercial and thus worth less than a "stand alone" flat. When a commercial premises and living accommodation are occupied together it is known as a "composite". If living accommodation ceases to be composite, as in your case, the effective date of any increased band is the date it ceases to be composite (i.e. Sep 2008), so the council are correct in sending a backdated bill.

As for numbering!!!!! I've come across several houses in rural areas where the address in the Valuation List is the same for each - "Dwelling", The Drove, Midlofnoware.

There could be several reasons why it took so long before the flat was revalued as non composite, often it is the fault of the property owner not notifying the council of any changes.