We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Old Council Tax From 2012 Haunting Me!! HELP

2

Comments

  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    edited 18 December 2013 at 2:13PM
    I have checked the link you sent to me and the property always had five tennants or more over three floors. One room downstairs, three rooms on the first floor and a room plus sperate toilet and sink room in the loft. So I think it should meet the criteria stated to be a HMO.
    It depends:
    - I cant see where you have confirmed your tenancy status. Did you as a group have a single tenancy agreement with the LL so you in fact rented the entire property as a group and were thus jointly and severally liable for the rent? In that case it is not an HMO even if it is 3 storeys and 5 occupants
    - on the other hand, if you each rented your own room and thus had individual tenancy agreements which gave you access to shared common parts (kitchen, bathroom etc), then it is an HMO and furthermore with it being 3&5 it is a mandatory HMO which means that it must be registered with the council by law. If the LL has not done so then the council can prosecute the LL and the fine can be up to £50,000 as this is considered to be a serous offence. The reason being that 3 storey properties with 5 separate households living in it carries high risk rating and requires the LL to install many extra safety features to protect the occupants. The council will then inspect to ensure this work is adequate and will issue a licence to the LL

    so your position is somewhat different to #1
    EITHER
    a) you had a joint and several tenancy agreement meaning that under the "hierarchy of liability" (google it) the occupants are liable for CT and the council can come after any one of them for the whole amount (incl arrears from previous tenants)
    OR
    b) you lived in a council tax HMO where, under legislation, the LL (and only the LL) is liable for CT. On that basis the council should refund any tax collected from any and all occupants to date and collect the tax from the LL, backdating this to the date it first became an HMO. The council may not want to do this of course as it risks them having a problem collecting a very large sum from the LL but that is the correct legal position. the LL will of course hate it since he would then either have to foot the bill himself or try to collect the extra money from previous tenants - whether he can depends on the wording of each persons tenancy agreement, if the TA is silent on council tax then he can't and he is facing a large bill from his own pocket

    AND
    c) if its a mandatory HMO and the LL has failed to register the property as an HMO (and all such licenced properties should be listed on your council website so its easy for you to check) you have a very powerful threat to hold against the LL should you wish to negotiate who pays what. Alternatively of course you should do the correct legal thing and report it to the council anyway
  • So if I write all this to the council, if they don't agree can they still try to make me pay?

    Worth a try at least, as it should clearly have been a HMO.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    So if I write all this to the council, if they don't agree can they still try to make me pay?

    Worth a try at least, as it should clearly have been a HMO.
    you have not confirmed your tenancy agreement status so it is far from certain it is an HMO
  • I just checked my old tennancy agreement and it is a single tennancy agreement that each of us signed.

    Again if I had not been so niaeve at the time I could have known this was not right. But not having rented before I shall have to take this as a life lesson.

    I will just have to concentrate on trying to get the charges taken off and then pay up.

    Just feels very unfair - but life isn't fair is it.
  • John_Pierpoint
    John_Pierpoint Posts: 8,401 Forumite
    Part of the Furniture 1,000 Posts
    edited 18 December 2013 at 2:55PM
    00ec25 wrote: »
    It depends:
    - I cant see where you have confirmed your tenancy status. Did you as a group have a single tenancy agreement with the LL so you in fact rented the entire property as a group and were thus jointly and severally liable for the rent? In that case it is not an HMO even if it is 3 storeys and 5 occupants
    - on the other hand, if you each rented your own room and thus had individual tenancy agreements which gave you access to shared common parts (kitchen, bathroom etc), then it is an HMO and furthermore with it being 3&5 it is a mandatory HMO which means that it must be registered with the council by law. If the LL has not done so then the council can prosecute the LL and the fine can be up to £50,000 as this is considered to be a serous offence. The reason being that 3 storey properties with 5 separate households living in it carries high risk rating and requires the LL to install many extra safety features to protect the occupants. The council will then inspect to ensure this work is adequate and will issue a licence to the LL

    so your position is somewhat different to #1
    EITHER
    a) you had a joint and several tenancy agreement meaning that under the "hierarchy of liability" (google it) the occupants are liable for CT and the council can come after any one of them for the whole amount (incl arrears from previous tenants)
    OR
    b) you lived in a council tax HMO where, under legislation, the LL (and only the LL) is liable for CT. On that basis the council should refund any tax collected from any and all occupants to date and collect the tax from the LL, backdating this to the date it first became an HMO. The council may not want to do this of course as it risks them having a problem collecting a very large sum from the LL but that is the correct legal position. the LL will of course hate it since he would then either have to foot the bill himself or try to collect the extra money from previous tenants - whether he can depends on the wording of each persons tenancy agreement, if the TA is silent on council tax then he can't and he is facing a large bill from his own pocket

    AND
    c) if its a mandatory HMO and the LL has failed to register the property as an HMO (and all such licenced properties should be listed on your council website so its easy for you to check) you have a very powerful threat to hold against the LL should you wish to negotiate who pays what. Alternatively of course you should do the correct legal thing and report it to the council anyway

    I hope you are wrong, because this law was brought in, after some tragedies.
    These where deaths in the sort of accommodation occupied by a floating population of "student" type people, who probably hardly knew each other's names; what ever the paperwork might have said about forming "one household". Nobody was head of the household and where everyone is responsible for everything; nobody is responsible for anything.

    A prehistoric electric fuse has blown? Just wrap it in several layers of silver paper and jam it back in place?

    Councils should have responsibilities as well as rights.
  • I hope you are wrong, because this law was brought in, after some tragedies.
    These where deaths in the sort of accommodation occupied by a floating population of "student" type people, who probably hardly knew each other's names; what ever the paperwork might have said about forming "one household". Nobody was head of the household and where everyone is responsible for everything; nobody is responsible for anything.

    A prehistoric electric fuse has blown? Just wrap it in several layers of silver paper and jam it back in place?

    Councils should have responsibilities as well as rights.

    Thats exactly how it was. I seemed to be the only one concerned with paying bills, I was always trying to chase them for money to pay bills. There was a lot wrong with the house, the boiler was a health hazard!! And now this has happened because the two students ran off with my money and they can't find the other two men who are liable.

    But this will not interest the council. Hopefully if I can at least get the charges dropped I will be able to pay less.
  • So just to confirm so I am clear.

    I cannot go in with the HMO argument because I had the wrong kind of tennancy agreement?

    Is this the case?
  • lincroft1710
    lincroft1710 Posts: 19,034 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 18 December 2013 at 6:50PM
    If Sharleen, CIS, 00ec25, John Pierpoint and Lincroft decide they will rent a house together and enter into a tenancy agreement with a landlord to rent the whole house, the house is not a HMO for CT purposes.

    But if they each rent a room from the LL with an individual tenancy agreement then it is a HMO.
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    the house is not a HMO for CT purposes.

    With one caveat - since the regs were altered in 1995 the property is also a HMO if it's adapted or constructed for multiple occupancy (regardless of the rent sitauation)
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    edited 18 December 2013 at 7:11PM
    I hope you are wrong, because this law was brought in, after some tragedies.
    John as you know there is a difference between being an HMO for council tax purposes and being an HMO for the purposes of licencing (ie safety features). You can still be an HMO even if no licence is required but in that case no one checks your compliance with the installation of HMO safety features

    where there are 5 households in a 3 (or more) storey building, then it is a mandatory HMO and must be licensed so will be checked

    where there are not, then it is down to each individual council whether they have implemented selective licensing under which powers the council defines the "size" of property which it requires to be licenced and so are checkable.

    If the council has not implemented selective licensing, there is nonetheless a responsibility placed on the LL to confirm what, if any, safety features are required even if no formal licence is needed because any property with 3 or more households (ie not renting the whole property as a single group) will be an HMO under the HMO legislation and so should meet certain standards, but may not have to hold a formal licence from the respective council confirming its compliance with those standards.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.7K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.7K Work, Benefits & Business
  • 600.1K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.