I am a lodger and have recently found out that my landlady is still claiming 25% CT discount

lakeboat12

I have been living in this property with the landlady since October 2016 but did not sign an agreement as she didn't provide one. She originally told me she would, but it never materialized. As I am about to move out, we were having a conversation about the length of notice I have to give as there isn't a written agreement defining an actual period. I do however, have bank statements and emails confirming that I have lived there. During this conversation, she let slip that she didn't want a written agreement as this would mean that there would be written confirmation about her having a lodger and therefore she would lose her 25% council tax discount. From this I concluded that she hasn't been paying any HMRC tax on the income either.

This worries me as I don`t want to be hit with a bill by her when/if she gets caught. So I wanted to ask, would it be my responsibility or hers to pay the council tax and income tax?

Thanks in advance.

G_M

1) Notice
With no agreed notice period, it must be 'reasonable'. A rule of thumb is 1 week's notice if rent is paid weekly, or 1month if rent is monthly.

2) Income tax / HMRC.
The rent-a-room scheme here allows landlords to receive rent from lodgers without either declaring orpaying tax.

3) council tax
The 25% discount is being fraudulently claimed if you are correct. The fraud is by the LL, not you. Whether you choose toreport fraud to the council is up to you.

theartfullodger

You now know she is a cheat and a crook:. Unpatriotic IMHO.

I don't knowingly do business with crooks or cheats. In your shoes I'd move out & grass her up. Wonder what else she is fiddling - bet there's more.

sevenhills

lakeboat12 wrote: »

From this I concluded that she hasn't been paying any HMRC tax on the income either.

This worries me as I don`t want to be hit with a bill by her when/if she gets caught. So I wanted to ask, would it be my responsibility or hers to pay the council tax and income tax?

Thanks in advance.

If I were you, if you feel its warranted, I would report the landlord to the council a few months after leaving.

saajan_12

lakeboat12 wrote: »

I have been living in this property with the landlady since October 2016 but did not sign an agreement as she didn't provide one. She originally told me she would, but it never materialized. As I am about to move out, we were having a conversation about the length of notice I have to give as there isn't a written agreement defining an actual period.- a written agreement isnt' necessary, irrelevant, what did you agree re notice even if verbally at the outset? If you really didn't agree anything then notice should be 'reasonable', usually in line with licence / rent periods. eg if you pay monthly then 1 month.
I do however, have bank statements and emails confirming that I have lived there. During this conversation, she let slip that she didn't want a written agreement as this would mean that there would be written confirmation about her having a lodger - an agreement doesn't get automatically sent anywhere more than bank statements or emails.. the paper trail is about the same with / without the agreement. and therefore she would lose her 25% council tax discount. - assuming she's not a student or otherwise excused from council tax, this is fraud. From this I concluded that she hasn't been paying any HMRC tax on the income either. - you don't know that, and unless the rent was more than £7,500 per year, she wouldn't owe HMRC anything anyway.

This worries me as I don`t want to be hit with a bill by her when/if she gets caught. So I wanted to ask, would it be my responsibility or hers to pay the council tax and income tax? - neither are your responsibility: as occupier & owner, she is higher on the CT heirachy than you, so you have no liability for council tax. As a landlord resident in UK, she is always liable for her own income tax so nothing to do with you.

Thanks in advance.

Notice should be 'reasonable' ie equal to a rent period in the absence of any agreement.

Council tax & income tax both NOT your responsibility, so don't worry about any liability on you. Its up to you if you want to report her (note the income tax may be £0 under rent a room scheme unless rent is over £7500.

Marvel1

I would report them for council tax.

Where have you been regisrted to vote? Surely this would bring up a red flag, every year I get a form to confirm occupants living here who are regisrted to vote.

lakeboat12

Marvel1 wrote: »

I would report them for council tax.

Where have you been regisrted to vote? Surely this would bring up a red flag, every year I get a form to confirm occupants living here who are regisrted to vote.

I was at my parents during the 2017 election so voted there but haven't seen any form come through regarding registering, unless she`s disposed of them.

pinkshoes

I would phone or write to the council giving them notice that you are moving out, just so that you won't be responsible for council tax any more...

Do this the day you leave.

Ohps! What do they mean you aren't on the council tax??? But you've been living there since Oct 2016! Of course you'll confirm it in writing...

alfred64

You were told in confidence. Keep it to yourself. No liability to you. If the council do find out about her discount it's her problem. What benefit would it be to you by dropping her in it?

lakeboat12

alfred64 wrote: »

You were told in confidence. Keep it to yourself. No liability to you. If the council do find out about her discount it's her problem. What benefit would it be to you by dropping her in it?

It`s fraud.

Edi81

You do self registration. If you had she would have been red flagged by the council.

I was red flagged about 4 months after moving into my place. I bought in December, went into electoral register straight away and in about April received a very strong worded mail about why I was claiming the discount when there was another person registered at the address. The other individual was the man I bought the flat from who hadn’t registered at his new place.