Council Tax for HMO paid by tenants?

Joanna_Kamieniak

Can someone please help on this. My friend lived in a shared house of 5 people, there was all documents hanging around the kitchen about HMO property, however landlord included in the contract that tenants are responsible for council tax.
There were 2 students and 3 full-time working professionals (my friend is professional). People were going and coming and every time council tax was changing, letters were sent based on how much professionals had to pay. At the moment when one professional moved out and was replaced by a student, my friend went to council and asked how much she needs to pay (for herself). It came out that house should be HMO, however license expired May last year (conditions of living didn't change, 5 people, shared areas etc). She was advised not to pay anything because it is landlords responsibility and that he should refund what she paid so far. She gave council copies of contracts of all tenants etc. Few letters came on the name of my friend and other professional that they owe money for 2-3 months, they were told to ignore them as case was dealt with between them and landlord. She went in total 4 times and called twice, they couldn't sort it out and now she is called for summin that she is liable of paying all council tax that is due.

Can you advise anything what should we do? She will go and bring all documents she has but I am not sure if this will be enough.

pramsay13

Does she have evidence that she was advised not to pay anything?

Is the HMO rental for individual rooms on individual tenancy agreements? If so it is the landlord that is liable for payment although the rent will reflect this.

If the rent doesn't cover council tax it is the tenant's responsibility to pay this, although in this case there is the separate issue of landlord renting out property without an HMO licence.

https://landlords.org.uk/news-campaigns/news/council-tax

Joanna_Kamieniak

She has a date and name of a person she spoke to.

She has individual tenancy agreement (assured shorthold tenancy agreement), with names of other tenants when she moved it, but none of them signed her contract nor she signed any others. Most of the people on her contract moved out in the first few months and contracts haven't been updated.

If landlord didn't renew the licence, does that mean she needs to pay for all property (classed as band G)?

anselld

The definition of HMO for CT purpose is completely different to the definition for Licensing and Housing Act. For CT if all the tenants are on a single "joint and several" tenancy agreement it is not a CT HMO, even though it may be a Housing Act HMO.

If each tenant has a separate agreement it is a CT HMO, even if it is not an HMO by the Housing Act definition.

If it is a CT HMO the L is responsible to pay the Council Tax, however the L can still include terms in the agreement to recoup this from Tenants.

00ec25

so she has now been summoned before a council tax tribunal for non payment?

Yes she must bring all her documents with her, and it is vital that she attends in person as it sounds like she has a perfect case to show that she has NEVER been liable for council tax at all in her name because she can show that the property meets the definition of a Council tax HMO

As noted in the post above, that definition has nothing whatsoever to do with whether the property was, or was not, "licensed"(under the Housing Act HMO rules). All she has to do is show that the tenants had individual contracts and therefore it was in multiple individual person occupation, not occupation by a single "household" of joint tenants.

Note however, yes the council cannot charge her for council tax as that is the law. However, her contract with the LL may well enable the LL to sue her personally for her share of the council tax the LL is legally liable to pay. She may not get away without paying something, it all depends on how upset the LL will be when they are presented with a bill by the council.

Joanna_Kamieniak

Thanks guys for the replies.

The house is classified as council HMO, and it should have HMO licence as well. In the Court it came out that landlord was dishonest and told them he rented the property as joint tenancy, in which case he wouldn't be responsible for paying CT, however all tenants has individual room renting agreements. We gave them all the contracts and they put full liability on the landlord.

Thanks for all suggestions.