Council Tax liability for Graduating students

mumbythesea

My son has just been hit with a £150 a month council tax bill ( for a studio in middleborough like how can it be that much ?)  They are claiming that his course finished on the 16th of May even though he doesnt graduate until the 16th July. 

He has no income , he is living on the remainder  of his student loan whilst be waits to graduate , this is his only income , how do they expect them to pay ? Of course they no doubt are expecting the parents to cover it which I don't feel I should have to do !! 

Anyone else in the same predicament? Feel this is a blantent cash grab  , he will be leaving the area after graduation to move home but know how these things can escalate ! 

silvercar

He should check with the university the official end date of the course and check that they have passed this date correctly to the council tax department.

When you say the course finished on 16 May, is that the last date of an exam/ hand in date/ lecture or what? 16 May is a Thursday, suggesting something random. Is 16 July the date of the graduation ceremony? If so, it is common for that date to be beyond the end of term and graduands invited back to attend the ceremony.

If his course did genuinely finish on 16 May, then he could seek work, even if only temporary work, in order to cover his bills.

Flugelhorn

recent article about this https://www.theguardian.com/money/article/2024/jun/29/council-tax-final-year-students-warned-they-could-get-surprise-bills

"While students are exempt from the tax during the course, they are liable to pay as soon as they finish their final year.

The UK government says student status ends the day after the close of a university’s summer term, usually at the beginning of June.

Student accommodation leases from private landlords typically run until late June, July or even August, and this discrepancy means the risk of a surprise bill."

silvercar

I’m guessing Teeside university. It seems semester 2 ends on 17 May. So from that point he is no longer a student and therefore no longer entitled to a council tax nil rate. It also means that his student loan is no longer expected to cover him. He needs to either be working or claiming any benefit, including council tax benefit he may be entitled to. The graduation ceremony in July isn’t relevant.

Too late now, but another option would be to relinquish his tenancy (rent would still be payable if in the fixed term) as that would mean he was no longer resident and return to the family home.

mumbythesea

I'm actually living abroad and he will be coming out to join me so he will no longer be resident in the UK, I'm surprised that its so high my house in Sussex is not this high , what is happening in the UK right now 🤷‍♀️

Flugelhorn

mumbythesea said:

I'm actually living abroad and he will be coming out to join me so he will no longer be resident in the UK, I'm surprised that its so high my house in Sussex is not this high , what is happening in the UK right now 🤷‍♀️

probably band B - £1800 a year, he can claim 25% single person discount  - you are lucky that yours is less than this! watch out for the sussex house if it becomes a second home

Kim_13

I wouldn't be surprised if they were considered no longer a student the day after their last exam, was this 16th May or some other date, as 16th May does seem very early? I would expect someone who has just finished uni to be entitled to Council Tax Reduction if they aren’t going straight into a job and don’t have savings (the amount precluding a claim will vary by the council.) The parents aren’t expected to pay it and can’t be chased themselves unless named as a tenant but it will take some effort to establish the correct billing / claim the reduction.

It is joint and several liability so any flatmates should pay their proportion, but problems start if they refuse to do so, as the council can fix on one party and expect full payment from them. Also if students are expected to start paying the day after their last exam (hopefully someone else can confirm this) then it is a bit of a nightmare with students on different courses becoming liable on different days - there is a 75% bill (after single person discount) if one resident is not a student while the rest are, and a full bill when two are not in education. 

Looking at my former student accommodation it did feel that the banding of such places was high. The band will be on the bill and if he feels it is excessive, he could challenge it but the procedure doesn’t halt the payment demand and could be impossible if there are no other properties he can find nearby in lower bands that the council will accept as sufficiently similar. I’m not sure what the position is on studios that aren’t purpose built student accommodation vs those that are. 

Billing will be tied to the tenancy, this is why student LLs make them pay for 12 months when they only need 10 - they don’t want to be on the hook for the 2 months and if all LLs do this, they don’t lose tenants by not being flexible. Provide a copy of the agreement to the council and state that it is not being renewed so the LL/new students will be liable after that date.

A lot of people who shouldn’t have to pay probably do sadly, to avoid the hassle. The council don’t care if the money comes from someone who isn’t liable, as long as they get it.

mumbythesea

I get it , as his leaving the country I could just tell him to ignore it but then he'll get a ccj.
His is in a self contained studio but £150  a month is insane for middlesborough I thought it was supposed to be cheap up north !! 

LinLui

The council don’t care if the money comes from someone who isn’t liable, as long as they get it.

The council is obliged by law to collect council tax, and there are government imposed penalties if they fail to collect. The system and regulations for council tax are set by government. If the council fails to collect sufficient of its debt it is your bill that goes up and your services that go down. It has nothing to do with not caring who pays, and everything to do with having no say in the matter. 

silvercar

mumbythesea said:

I get it , as his leaving the country I could just tell him to ignore it but then he'll get a ccj.
His is in a self contained studio but £150  a month is insane for middlesborough I thought it was supposed to be cheap up north !! 

No, it is not a County Court Judgement. A Liability Order is granted in the local Magistrates' Court and does not appear on your credit file.

It can be passed to debt collection agencies. So may be worth contacting the council and saying he is leaving on Xx date. Also claim council tax benefit if eligible. With no income and the student year finished, it may be that he is entitled to full council tax benefit.

p00hsticks

mumbythesea said:

His is in a self contained studio but £150  a month is insane for middlesborough I thought it was supposed to be cheap up north !! 

All the things that council tax goes to pay - schooling, police, fire, social services, waste disposal etc, aregoing to cost pretty much the same where ever you are in the country.

I suspect the main difference will be that there are fewer high value (and therefore high banded) properties in the cheaper areas of the country, and therefore the majority of the money raised has to come from lower banded properties..