Warning: council tax liability before term starts.

silvercar

As a warning to others.

If you start renting a private house before the start date of your course, you won't be classified as a student until the start date. So will have a council tax liability for time from the start of the tenancy until the first day of term.

My son got caught out by this for the time between his degree course finishing and his masters course starting at the same university.

Even if there is some agreement for a lower summer rent with no right to occupy the property, even if you are living elsewhere, you are still liable for council tax.

CIS

That's always been the case with students as per council tax legislation although some local authorities will declare the balance uncollectable and not chase the students for short periods of tenancy at the start and end of the course or across the summer where they're continuing on as a full time students on another course.

That tenancy agreement is unusual though - why was there an agreement for no-occupancy ? What was the landlord doing with the property across the summer ?.

silvercar

Standard for student lets in Manchester. The landlords use the Summer to attend to refurb and maintenance and the students pay only half rent.

Trying to appeal on the grounds that the council started enforcement procedures based on the full year's council tax rather than the revised bill that only covered the Summer months.

CIS

silvercar wrote: »

Trying to appeal on the grounds that the council started enforcement procedures based on the full year's council tax rather than the revised bill that only covered the Summer months.

Legally, that's fine - in theory the council can apply to have the L/O cancelled and the court can then issue a new one for a revised amount but it's not required for them to do so (Regulation 36A of the council tax (administration & enforcement) regs 1992).

If a demand notice is issued and action progresses then the balance can be adjusted at any point if more information comes to light regarding a discount/exemption etc. If the information is actioned before the right to pay by instalments has been lost then a new demand notice should be issued with new instalments but after that the adjustment will only reduce the outstanding balance.

You can however ask the council to reconsider what they have done based under their own internal procedures.

silvercar

Not worried about instalment payments, more worried about one of them getting a CCJ as it has gone to court.

May end up putting in a retrospective application for council tax benefit. As if they weren't officially students and had no income at that time, they should be eligible for CTB by my reading of the rules. Something that the council tax department didn't tell me.

CIS

silvercar wrote: »

Not worried about instalment payments, more worried about one of them getting a CCJ as it has gone to court.

May end up putting in a retrospective application for council tax benefit. As if they weren't officially students and had no income at that time, they should be eligible for CTB by my reading of the rules. Something that the council tax department didn't tell me.

Council Tax doesn't use CCJ's - they use Liability Orders, which are via the Magistrates court and don't on the credit record.

The problem you have with that is that local authorities do not have to advertise that you may be entitled to CTB, it's up to the claimant to enquire. Again, however, the council may well have their own policies on it and you may find a way in that to argue the point.

silvercar

CIS wrote: »

Council Tax doesn't use CCJ's - they use Liability Orders, which are via the Magistrates court and don't on the credit record.

The problem you have with that is that local authorities do not have to advertise that you may be entitled to CTB, it's up to the claimant to enquire. Again, however, the council may well have their own policies on it and you may find a way in that to argue the point.

Thanks for that, it is reassuring.

A retrospective claim for HB and CTB would outweigh the outstanding bailiffs charges, so that may be a way forward.

CIS

silvercar wrote: »

Thanks for that, it is reassuring.

A retrospective claim for HB and CTB would outweigh the outstanding bailiffs charges, so that may be a way forward.

If they consider a backdated claim then I'd certainly push for the enforcement agent and fees to be withdrawn - technically they don't have but I often have done if for payers, especially if there's been any sign the council cocked it up.

silvercar

CIS wrote: »

If they consider a backdated claim then I'd certainly push for the enforcement agent and fees to be withdrawn - technically they don't have but I often have done if for payers, especially if there's been any sign the council cocked it up.

Problem is that they have now paid the council tax (though not the other costs), so pursuing a benefit claim may look odd. If successful I assume that means the council will need to refund the payment?

CIS

silvercar wrote: »

Problem is that they have now paid the council tax (though not the other costs), so pursuing a benefit claim may look odd. If successful I assume that means the council will need to refund the payment?

If any adjustments puts the account in to credit then the amount needs to be looked at for a refund. At the moment though the costs will remain recoverable unless they are otherwise cleared by payment, are written off etc.

You can still ask for a council tax reduction claim to be backdated, whether they will or not is another question.

silvercar

Council have said they need to see the original tenancy documents in order to cancel the council tax. Problem is that they were signed in the letting agents office and only the landlord now has a copy.

Council have said that if the charge is withdrawn from the students, the landlord will be liable for it. So asking the landlord for the tenancy agreements will mean he will incur the council tax costs. Bit like asking turkeys to vote for Christmas.