COUNCIL TAX FOR A RENTED ROOM IN AN HMO (House in Multiple Occupation) 4 September 2022 at 1:51PM in Reclaiming mortgage fees, council tax, etc 25 replies 782 views

JulieDH

My daughter rents a room with en suite in shared accommodation.  There are 4 other tenants.  She shares the living room, kitchen and main bathroom with the other tenants.  Each tenant has their own tenancy agreement.  The house has an HMO licence.  She has recently received a council tax bill addressed to her room stating that she owes council tax of £1,200 as her room has been assessed as Band A as it is classed as a self-contained property.  Is this correct?  How can it be classed as self-contained if she shares all the other rooms except her bedroom?  Also, if she does have to pay this council tax, will she be entitled to single person discount?  Thank you in advance.

lincroft1710

If a room in a HMO has some adaptation towards making it self contained, e.g. a shower room, then it can have its own CT band. So it looks like your daughter's room has been correctly separately assessed. If she is the sole occupier of the room then she would be entitled to SPD 

https://www.gov.uk/guidance/understand-how-council-tax-bands-are-assessed

macman

What does her TA say about payment of C. Tax? 
To be assessed as self contained, doesn't the dwelling need to have some provision for food preparation as well, such as a kichenette (sink, microwave etc)?

lincroft1710

macman said:

What does her TA say about payment of C. Tax? 
To be assessed as self contained, doesn't the dwelling need to have some provision for food preparation as well, such as a kichenette (sink, microwave etc)?

When I was in the VOA, that was the criteria we used for annexes, but in the intervening 16 years, the rules appear to be less stringent. Certainly for rooms in an HMO, there only needs to be some adaptation either a kitchenette or a shower room according to the government website I quoted in a previous post. Apparently there does not need to be both.


CT hierarchy of liability overrides any tenancy agreement terms and conditions.

MalMonroe

Hi, in the link provided above by lincroft1710 is a paragraph which states -

"Separately let rooms in an HMO may have been structurally and/or physically adapted, for example, so that they have their own kitchenette or separate shower/bath and WC. They will be given their own band even though may share some facilities. In making a decision, the VOA will look at all the facts, including whether the property has been structurally altered".

So it seems that your daughter is liable for CT but would also be eligible for the single person's discount. However, if she isn't happy with the council's decision, she can always ask them to investigate and/or advise. The VOA should actually visit the property to ascertain the correct CT bandings.

As we know from posts on this very site, councils do not always get things right when it comes to council tax bandings and/or charges.

I'd definitely query this with the council. It can't hurt and could even help. If the money is due then the council will also be able to help with some payment arrangements - after the single person's discount has been deducted.

macman

lincroft1710 said:

macman said:

What does her TA say about payment of C. Tax? 
To be assessed as self contained, doesn't the dwelling need to have some provision for food preparation as well, such as a kichenette (sink, microwave etc)?

When I was in the VOA, that was the criteria we used for annexes, but in the intervening 16 years, the rules appear to be less stringent. Certainly for rooms in an HMO, there only needs to be some adaptation either a kitchenette or a shower room according to the government website I quoted in a previous post. Apparently there does not need to be both.


CT hierarchy of liability overrides any tenancy agreement terms and conditions.

I understand that, but it would be interesting to know if the LL let the room on the basis that CT was included or excluded? This change didn't come out of nowhere and there must have been an inspection, which the LL would be aware of?
If the LL let it as a room in an HMO then the rent must have included an allowance for CT, and the tenant is entitled to request a reduction in rent if this is no longer the case.

lincroft1710

MalMonroe said

However, if she isn't happy with the council's decision, she can always ask them to investigate and/or advise. The VOA should actually visit the property to ascertain the correct CT bandings.

As we know from posts on this very site, councils do not always get things right when it comes to council tax bandings and/or charges.

I'd definitely query this with the council. It can't hurt and could even help. If the money is due then the council will also be able to help with some payment arrangements - after the single person's discount has been deducted.

If your daughter believes her room should not be banded then it is the VOA she should contact, not the council. There is little point in the VOA inspecting as the room is only in Band A and your daughter acknowledges there is an en suite. It may well have been inspected prior to her occupation.


She should contact the council to obtain the SPD and it will be obvious from the bill if the council are using the correct start date for her and charging the (pre SPD) amount. Clearly if the council are using a date prior to either your daughter's actual occupation or tenancy commencement (whichever is the earlier) then she should tell them.   

JulieDH

My daughter has just looked at her tenancy agreement and said there is no mention of council tax in her tenancy agreement.  She has lived there since August 2021 but never been asked to pay council tax until this invoice arrived which covers the period 23rd January 2022 to March 2023.

lincroft1710

JulieDH said:

My daughter has just looked at her tenancy agreement and said there is no mention of council tax in her tenancy agreement.  She has lived there since August 2021 but never been asked to pay council tax until this invoice arrived which covers the period 23rd January 2022 to March 2023.

This would indicate that the effective date of the CT band as 23 January 2022

molerat

Check here to see if it is a recent banding

https://www.tax.service.gov.uk/check-council-tax-band/search

macman

Are the other rooms also en-suite? Have the other tenants also been billed?
She needs to speak to the LL to establish what his understanding of the position is, as he must have been paying the CT up to 1/22.
Perhaps there was a refurb and the en-suites were added sometime before that date?