Council tax liability (HMO) ??

inama

Hi all,

I have been renting in a HMO 4 bed property for the last 2 years, I have been the only working professional in the house, the other 3 tenants are students. - The LL has only just applied for a HMO license as I had to inform the council that the property was unlicensed.

The council tax has always been in the LL's name however I am required to reimburse the LL the full amount every month, I have been renting for over 5 years but this is the first time I am renting a room in a HMO property so naively, I was not aware that the LL is completely liable for the council tax until recently.

My issue is that I have spoken to the council and I have read legislations (Local Government Finance Act 1992) which both state that I do not pay council tax, however I am now conflicted as I have read multiple posts / opinions which say the LL can include the council tax bill in the tenancy agreement which require tenants to reimburse the LL.

I reviewed my contract and there are 2 clauses which refer to the council tax:

1. “The rent (excluding bills) is £xx per calendar month. The tenant is liable to pay Council Tax charges on a monthly basis. The rent includes the shared usage of the lounge/dining area, kitchen, bathroom and toilet. “
3. “The Tenant must pay to the relevant local authority their share of the council tax due in respect of the Property during the Tenancy if applicable.”

From my understanding:
- This clause is incorrect as I am not liable (point 1)
- The council tax is not applicable to me as the LL is liable (point 2)
- The tenancy agreement does not state anything about a "reimbursement"

So taking all these into account - should I have been reimbursing my LL the CT bill for the past 2 years?

Also as I only rent a room, and do not have exclusive use of the whole property as I do not have access to 4 other rooms (3 bedrooms and an ensuite) in the house - have I been wrongly paying the full council tax amount and if i were to pay council tax should it only be a portion?

If the clauses are incorrect, can I ask my LL for a refund?

Note: We all have separate tenancy agreements.

Thank you in advance

theartfullodger

The landlord is responsible.

The contract clause may not be enforceable. If feeling brave refuse to pay & see if landlord tries court action.

CIS

As above, on a council tax HMO the landlord falls liable for the council tax charge (although any normal council tax discounts or exemptions will apply). If you want to decline payment to the landlord then council will chase him as the liable party however he may chase you for the monies - it would take a court to decide on the clause (after nearly 2 decades of dealing with council tax disputes I'm still yet to see a verified case where the landlord has been successful against the tenant in these sort of cases).

As 3 of 4 occupiers are full time students then, assuming they qualify as such for council tax purposes, the council tax charge should be subject to a 25% discount anyway.

dimbo61

4 bed HMO ?
Where are you living ?
Why are you living with students ?

Wanderingpomm

Where are you living?
Not all areas require a license for a 4 bed HMO.

Have you not just set yourself up for eviction? Surely it would make the LL life easier if you were all students?

And what is the tenancy agreement? Joint or just fot your room?

inama

Wanderingpomm wrote: »

Where are you living?
Not all areas require a license for a 4 bed HMO.

Have you not just set yourself up for eviction? Surely it would make the LL life easier if you were all students?

And what is the tenancy agreement? Joint or just fot your room?

I have contacted the local council who stated this is a HMO property because of the area the property is located in (Bristol)

I don’t understand how I have set myself up for eviction, it is a fixed term contract.

We all have separate tenancy agreements.

inama

dimbo61 wrote: »

4 bed HMO ?
Where are you living ?
Why are you living with students ?

This property is classed as a HMO in Bristol due to the location.

Why am i living with students?
- I didn’t find the tenants, the landlord did. I have been in the property for 3 years, the other 3 tenants have changed between students and working people over the years

00ec25

your position is "clear"
- it is an HMO
- the landlord is the only person with the legal liability to pay CT to the council
- you on the other hand (appear to) have a contractual liability to pay "CT"

such contractual clauses are common, for obvious reasons.
What neither you, nor we, can tell is what attitude your LL will take in terms of enforcing your contractual obligation, which you agreed to when you signed the contract. There is nothing more that can be said in terms of what will happen when you refuse to pay the "CT" to your LL. Wait and see ...

You most certainly do not pay it direct to the council as you are not (in law) the liable taxpayer. Technically you should pay it direct to the LL, so they then pay it to the council.

anselld

inama wrote: »

This property is classed as a HMO in Bristol due to the location.

Why am i living with students?
- I didn’t find the tenants, the landlord did. I have been in the property for 3 years, the other 3 tenants have changed between students and working people over the years

Presumably it was clear from the outset that you would be expected to pay Council Tax under the contract. Presumably it was also clear that your "share" would increase or decrease depending on the status of the other residents.

So it is a bit late now to be arguing against paying based on a re-interpretation of the contract wording. If you decide to pursue this there is a chance you may win the argument based on the poor contract wording, but it is fairly certain you will be evicted at the earliest opportunity.

inama

anselld wrote: »

Presumably it was clear from the outset that you would be expected to pay Council Tax under the contract. Presumably it was also clear that your "share" would increase or decrease depending on the status of the other residents.

So it is a bit late now to be arguing against paying based on a re-interpretation of the contract wording. If you decide to pursue this there is a chance you may win the argument based on the poor contract wording, but it is fairly certain you will be evicted at the earliest opportunity.

While I under I had signed this contract under the expectation of paying council tax which I initially agreed to, the contract does not state this is a HMO property or any sort of indication, had it did I would have questioned this, however the council has only recently brought this issue to my attention where alarm bells started to ring and told me I am not liable.

Is it not the Landlords responsibility to be clear and transparent in the contract, to state this is a HMO property?

Also I only have exclusive use of one room, I don’t have access to 4 other rooms, is it not unfair that I am paying council tax for the entire property?

buggy_boy

inama wrote: »

While I under I had signed this contract under the expectation of paying council tax which I initially agreed to, the contract does not state this is a HMO property or any sort of indication, had it did I would have questioned this, however the council has only recently brought this issue to my attention where alarm bells started to ring and told me I am not liable.

Is it not the Landlords responsibility to be clear and transparent in the contract, to state this is a HMO property?

Also I only have exclusive use of one room, I don’t have access to 4 other rooms, is it not unfair that I am paying council tax for the entire property?

I think you are getting confused. The LL is in the eyes of the council liable for council tax, the reason councils do this is because they know LL's are less likely to default and disappear than tenants. You are contractually liable to pay the council tax, this can be paid either directly to the council or to the LL who can pay the council, it makes no difference.

In no way are you "off the hook" for council tax.

Where you may be able to argue though and I think correctly is if you have 4 tenants and each tenants contract says the same thing I would argue that each tenant is liable for 25% of the council tax, this is regardless of their exempt status. Their status of exempt having to pay CT is to the council however they still have a contractual liability to pay.

The reason I make this argument is because the wording is not clear and if there was no exempt persons each tenant would not be expected to pay the full council tax bill on their share.

You may also be able to get a single persons discount as all others in the property are exempt.

With regard to the question about not being an HMO on the contract I think it would be pretty clear that it was an HMO so I don't think that would hold any weight.