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Council tax distribution in a HMO

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inama
inama Posts: 11 Forumite
Third Anniversary First Post
edited 11 November 2019 at 6:12PM in House buying, renting & selling
Hi all,

I am renting in a HMO property (all separate tenancy agreements) - I am the only working professional in the house, the rest are students (please don't ask me why I am living with students, I did not choose the tenants, there has been a mixture of working prof and students over the last 3 years)

I understand the LL is liable for CT and can distribute an amount to the tenant, my rent does not include CT, it is a separate bill but I am being billed for the full (75%) amount.

However as I am only renting a room, and not the entire property, should I not be liable for only 25% of the CT, as I only have exclusive access to my room only?

Note: This question is not in regards to the single person 25% discount, it is simply asking whether the LL should contribute too.
My contract just states I am liable for council tax - it doesn't state the contribution.
«1

Comments

  • Caz3121
    Caz3121 Posts: 15,832 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    https://www.gov.uk/council-tax/who-has-to-pay
    there should be a 25% discount if only one working adult (leaving 75% to be paid)
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    The landlord is responsible by law for paying the CT. As all but one occupants are exempt, the single person discount (25%) applies.


    Under your contract you are liable to the landlord for the CT. As all but one occupants are exempt, the single person discount (25%) applies.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    As you say - in an HMO, the landlord is legally liable for the CT.

    Everything else is negotiation around your contract. But remember that if you moved out and another student moved in, the landlord would not be paying any CT - the entire amount is due to you not being eligible for reduction. When viewed like that, why is it unfair on his part to expect you to pay the entire amount...?
  • inama
    inama Posts: 11 Forumite
    Third Anniversary First Post
    G_M wrote: »
    The landlord is responsible by law for paying the CT. As all but one occupants are exempt, the single person discount (25%) applies.


    Under your contract you are liable to the landlord for the CT. As all but one occupants are exempt, the single person discount (25%) applies.

    Yep I understand this, but as a tenant who is renting only a room (25% of the house) - not the entire property, should the LL not contribute to the CT?
  • Caz3121
    Caz3121 Posts: 15,832 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    you would be better sharing with other working people where you can share the liability
    likewise an all student property would be 100% discount - better for the landlord
    have you thought about moving?
  • george4064
    george4064 Posts: 2,928 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    inama wrote: »
    Yep I understand this, but as a tenant who is renting only a room (25% of the house) - not the entire property, should the LL not contribute to the CT?

    I think its fair to say that the council expects payment for the property since there is an employed (non-student) living there, as previously mentioned it seems like the property is eligible to receive the single person discount.

    Initially the LL should pay council tax, and then it is up to you and the LL to agree how much of that council tax you should pay and how you should pay it.
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  • Tigsteroonie
    Tigsteroonie Posts: 24,954 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    As the OP doesn't have any input as to who rents the other rooms, why should he be liable for the full 75% CT? If he had a say, I'm sure he'd fill other rooms with working people and be liable for only, say, 25% CT (if 4 people lived there & worked). By renting to students, the Landlord has made him liable for the 75%.

    So my opinion FWIW is that the Landlord should pay the CT and splitting of the bill is totally up for negotiation.
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  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    As long as it's a single dwelling for council tax purposes then there will be only one council tax charge on the property.



    If it's a council tax hmo then the landlord falls liable in law but the discounts/exemptions apply to the circumstances of the whole dwelling.



    How the landlord splits the recovery of this money from the tenants is entirely down to the contract he has with them and entirely a matter of negotiation.
    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.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    So my opinion FWIW is that the Landlord should pay the CT and splitting of the bill is totally up for negotiation.

    It might be up for negotiation if the OP and their landlord were currently negotiating their agreement. It doesn't sound like they are.
  • You've already asked this and had answers.. why ask again, please?


    https://forums.moneysavingexpert.com/discussion/6068042/council-tax-liability-hmo
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