COuncil Tax Liability Whilst Parents Living In My House

Joey122

I was hoping someone could help

I had previously told the council that my parents were living at my address under an assured shorthold tenancy and that I was not liable for council tax (and that my parents would be liable).

My parents are disabled and therefore are entitled to a discount on their council tax

The council have written back and asked for:

1) Copy of AST - Fine I have this and can send to them
2) My main address - I am living at my girlfriends and my car is insured to her address so I can tell them no problem
3) Proof of deposit registered under the deposit protection scheme - My parents did not pay a deposit so what am I meant to do
4) Proof of rent payments made by my parents to me - My parents do not pay me any rent. The AST states that they pay me £1 a month in rent and they pay the water bill. The electrics and gas are in my name

I am quite worried that the council makes trouble and tries to discredit me by claiming that no despoit and such a low rent means that I am hiding something (when in truth I am not)

How should i respond? In my experience they are quite ruthless and do not care whose lives they ruin

elmer

Your parents are applying for a means tested benefit, they are being asked the questions all applicants are asked in order to determine that they will be liable to be awarded Council Tax benefit.

Your parents should answer all their questions truthfully, and they will make a decision based on the rewgulations and your parents answers.

The council are rarely "out to ruin lives"

elmer

cockaleekee

Do you have a BTL mortgage/ consent to let?
Do you have landlords insurance, a gas certificate etc?

Joey122

elmer wrote: »

Your parents are applying for a means tested benefit, they are being asked the questions all applicants are asked in order to determine that they will be liable to be awarded Council Tax benefit.

Your parents should answer all their questions truthfully, and they will make a decision based on the rewgulations and your parents answers.

The council are rarely "out to ruin lives"

elmer

The point is that they have not asked them anything - They have asked me to prove that an AST exists and to prove payments of rent and deposit is held in a deposit protection scheme

As I have stated above there was no deposit and the rent is minimal so I am having difficulty answering those questions which is why I came onto this board

CIS

Where are you living at ?. I suspect that they believe the property is still your "sole or main residence".

zoominatorone

Do your parents get benefit to pay rent to you for the house?

Joey122

CIS wrote: »

Where are you living at ?. I suspect that they believe the property is still your "sole or main residence".

Thanks - I am living at my girlfriends house quite a long way from this house. Yes I suspect that they think this is my main residence as well

Joey122

zoominatorone wrote: »

Do your parents get benefit to pay rent to you for the house?

No they do - None of us claim any benefits at all

Fire_Fox

Send the AST, say there is no deposit, show proof of the £1 a month being paid, it's not problem that the rent is token if it's all above board. If they were paying full market rent and trying to claim housing benefit this might be deemed a 'contrived tenancy' but that is not the case.

I think you are going to have problems demonstrating this is a genuine tenancy if you are not taking the £1 a month and paying the energy bills for you parents, you would not do this for a private tenant. It's very important your parents are completely honest with the council and DWP about everything you pay on their behalf as this is considered income.

If you live and work a good distance away, keep all your personal belongings at the other home, have your bank statements and other mail sent to your other home, are listed on the council tax and registered to vote elsewhere you can prove your parent's house is not your main residence. You don't maintain a bedroom at your parents and stay there every weekend do you?

As others have noted since you have a tenancy agreement and a token rent you are a landlord and there are legal hoops to jump through. You should have consent to lease from your lender, be completing a tax return each year (even if you receive little so owe nothing), have a landlord's gas safety certificate and many other bits of legislation. Worth hunting out G_M's helpful post over on the 'House Buying, Renting & Selling' board.

It's nothing to with being ruthless or ruining lives, they have a legal obligation to the council tax payer to ensure discounts and benefits are applied fairly and correctly. It doesn't do your parents any favours if the council get this wrong then try to claw back the money later.

CIS

Unless you can prove you resident at your girlfriends and its your main home then your going to have a hard time proving your parents tenancy for HB/CTB purposes. Can you prove it ?

paddedjohn

Why would you need to prove a tenancy exists? all you have to show is that it is your parents home and prove that you live elsewhere.