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Council Tax for 2 single tenants plus utilities/tv licence

Pedders81
Pedders81 Posts: 16 Forumite
edited 29 December 2018 at 1:53PM in House buying, renting & selling
Hi,

I’m asking on behalf of my partner whom has found herself in a bit of a pickle.

She has lived in a rental property from a private landlord for the last 7 years and pays rent directly to the landlord, with the utilities and council tax paid by my partner directly to the relevant companies/council.

A couple of years ago she sub let a room to another person to help with the bills, the landlord consented to the sub let.

My partner was going to move out but due to unforeseen circumstances her move didn’t materialise and she stayed at the property. The landlord in the mean time decided to give a tenancy to the person who was sub letting a room in the property.

For the last 2 years my partner and the other person have both lived in the property on separate tenancies, the property isn’t registered as a house of multiple occupancy. All of the furniture, fridge, washer etc belong to my partner.

The other person was paying X amount including her share of the council tax to my partner each month who in turn paid the relevant parties.

The other person hasn’t been at the property much the last couple of months and has since handed in her notice. In doing so however she has refused to pay her share of the utility bills and the council tax.

With regard to the council tax, does this amount to council tax avoidance as they’re both on separate tenancies? and therefore jointly liable for the counci tax?

She’s also refused to make any contribution for the oil (boiler) which has set my partner back over £300.

In addition to this, my partner pays for the tv licence but again, with them both being on separate tenancies and the property not being a house of multiple occupancy, is the other girl in effect breaking the law? as in needed her own tv licence?

My partner is now heavily out of the pocket and the other person is refusing to pay her share for the last couple of months and through to her tenancy end date. You can’t pick and choose what rent you pay and barring taking her to a small claims court, is the other tenant in effect breaking the law re the council tax and tv licence?
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Comments

  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The other person was paying X amount including her share of the council tax to my partner each month who in turn paid the relevant parties.

    The other person hasn’t been at the property much the last couple of months and has since handed in her notice. In doing so however she has refused to pay her share of the utility bills and the council tax.

    With regard to the council tax, does this amount to council tax avoidance as they’re both on separate tenancies? and therefore jointly liable for the counci tax?

    If your partner rented the whole property and then sub-let a room your partner is the person liable for the council tax and not her sub-tenant.
    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.
  • CIS wrote: »
    If your partner rented the whole property and then sub-let a room your partner is the person liable for the council tax and not her sub-tenant.

    Initially she did but for the last 2 years they have both had separate tenancies.
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Pedders81 wrote: »
    Initially she did but for the last 2 years they have both had separate tenancies.


    Assuming England or Wales ?



    So, she rented only part of the property and/or was only responsible for her own rent ? If so then it was a council tax HMO and should be in the landlord's name anyway (note that a council tax HMO is different to a Housing Act HMO, they each have their own definition).
    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.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    It's one property, regardless of the number of tenancies or whether it qualifies as an HMO.

    When there's just one (CT-liable) person living there, they're eligible for a 25% discount in CT.
    When there's more than one person, they're not. The whole household is jointly and severally liable for the entire bill.

    Your partner was taking on liability for the entirety of the CT bill, with the other tenant paying "their share" through their rent. Likewise the heating oil, which I presume was being ordered by your partner?

    This ex-tenant owes your partner money. They do not owe the LA or heating oil supplier money.
  • CIS wrote: »
    Assuming England or Wales ?



    So, she rented only part of the property and/or was only responsible for her own rent ? If so then it was a council tax HMO and should be in the landlord's name anyway (note that a council tax HMO is different to a Housing Act HMO, they each have their own definition).

    England.

    The landlord gave a tenancy agreement to my partner 7 years ago. She was responsible for the rent, bills and council tax.

    Circa 3 years ago she sub let a room in the property with the landlords consent, the person wasn’t given a tenancy.

    A few months later and unbeknown to my partner the landlord decided to make it official and gave the other person a tenancy for the property. Both my partner and the other girl pay a monthly rental amount direct to the landlord. This doesn’t sit right with me at all as previously mentioned the house wasn’t a HMO and my partner already had a tenancy for the whole property.

    The landlord is a farmer (very rich), he’s a lovely guy but doesn’t give two hoots about rules and regulations.

    Both my partner and the other girl have individual tenancies and there’s no reference to them being for a HMO/room rental only. The house was unfurnished when my partner moved in, she owns everything in it barring the oven, bathroom facilities and the other
    girls bedroom furniture.

    The utilities are all in my partners name and she pays them every month. Both my partner and the other girl are named on the electoral register for the property. My partner makes the payment and the other girl was until recently paying my partner her share.

    With the property being a barn conversion and rural the boiler runs on oil. This is paid for by my partner and the other girl and not the landlord. As mentioned above the other girl is refusing to pay her share.
  • AdrianC wrote: »
    It's one property, regardless of the number of tenancies or whether it qualifies as an HMO.

    When there's just one (CT-liable) person living there, they're eligible for a 25% discount in CT.
    When there's more than one person, they're not. The whole household is jointly and severally liable for the entire bill.

    Your partner was taking on liability for the entirety of the CT bill, with the other tenant paying "their share" through their rent. Likewise the heating oil, which I presume was being ordered by your partner?

    This ex-tenant owes your partner money. They do not owe the LA or heating oil supplier money.

    Thanks for the reply.

    The other girls tenancy hasn’t ended yet. She also doesn’t pay council tax as part of her rent, her payment is purely for the rental only.

    If the whole household is jointly liable then where does my partner stand when the other party refuses to make any payments?
  • Your friend already had a tenancy for the whole property in her sole name and the landlord granted one to somebody else too?

    Is that right? If so he had absolutely no right to do that!

    Is your friend going to vacate too?
  • lincroft1710
    lincroft1710 Posts: 19,496 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Pedders81 wrote: »

    The landlord is a farmer (very rich), he’s a lovely guy but doesn’t give two hoots about rules and regulations.

    And by trying to be clever has landed himself with a CT bill! As a landlord he has legal obligations, so he cannot just give "two hoots about rules and regulations". I am not sure that creating a second tenancy conforms with landlord and tenant legislation
    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
    edited 29 December 2018 at 3:32PM
    Circa 3 years ago she sub let a room in the property with the landlords consent, the person wasn’t given a tenancy.
    Your partner would have been solely liable for the council tax charge at this point as the tenant.
    A few months later and unbeknown to my partner the landlord decided to make it official and gave the other person a tenancy for the property
    The landlord cannot unilaterally end a valid tenancy. so the the other girl can't be a valid tenancy. In that case so your partner would still hold the tenancy and be liable for the council tax charge as the resident tenant.
    EDIT:
    I'll take a look at the fine print of the liability for owners regs.
    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.
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    And by trying to be clever has landed himself with a CT bill! As a landlord he has legal obligations, so he cannot just give "two hoots about rules and regulations". I am not sure that creating a second tenancy conforms with landlord and tenant legislation


    I don't think it can be argued regarding the council tax HMO side as (amongst the other criteria) it requires tenancies or licences to occupy to be in place - neither of which the landlord could have granted to the 'sub-tenant' without the main tenancy being correctly surrendered (which doesn't seem to have been the case here - unless I've missed something).
    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.
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