PDA

View Full Version : Letting HMO to Council-found tenant; who pays C/Tax?



Evergreen
19-07-2009, 08:21 AM
hi all

i have an HMO which i rent to homeless persons via the council

one of them wants to stay on and sign an AST - how will the council tax work is this case? i'm paying the hmo council tax, does this mean the client doesnt have to pay council tax?

their room will be self contained

Preston
19-07-2009, 08:24 AM
hi all

i have an HMO which i rent to homeless persons via the council

one of them wants to stay on and sign an AST - how will the council tax work is this case? i'm paying the hmo council tax, does this mean the client doesnt have to pay council tax?

their room will be self contained

Hi

I'm not quite sure why you think the council tax position might change? Will they still be renting one room in a larger property and is that property the unit assessed for council tax? If so, I can't see that anything will change, unless I have missed something?
Preston

sherry
19-07-2009, 10:09 AM
Hi..

I am not an experienced Landlord,but will tell you my experience of HB Claiments and Council Tax.

I had 2 x tennants claiming HB, then one year later,completeley out of the blue, I received a council tax bill for 14 months of unpaid council tax, at my home address. I could not understand why. It seems that the tennants had been receiving the bills at the property that they were renting and had just been binning the bills and did not bother to inform me. I had been sent court orders and all sorts....If they had informed me, then the problem could have been resolved more quickly.

It appeared, that as I had given the tennants a seperate tennancy agreement, instead of a joint tennancy agreement, this made the landlord responsible for the council tax and not the tennants. I explained to HB that my tennancy agreement clearly states that all utility bills including council tax, was to be paid by the tennants. They did not want to know and I had no choice to pay the 14 months of unpaid council tax. As I say, I am not an experienced Landlord and this was a very expensive lesson learned. If a tennant is not working, I thought that they were entitled to their council tax being paid, wether being a joint or seperate tennant. If this was 2 x working people, they would have to pay their own council tax.

After several calls and arguments with HB, I was told to just issue them a joint tennancy agreement....problem immediately resolved....In my oppinion, HB make it up as they go along.

havensRus
19-07-2009, 12:50 PM
one of them wants to stay on and sign an AST - how will the council tax work is this case? i'm paying the hmo council tax, does this mean the client doesnt have to pay council tax?

their room will be self contained

Be very very careful when it comes to council tax and self contained units in HMOs. Depending on the council, they will assess the "self-contained unit" separately for council tax purposes - and you will end up with two or more lots of council tax for one property.

Please check out these links:
http://www.voa.gov.uk/council_tax/multiple_property.htm

http://www.voa.gov.uk/council_tax/self-contained-units.htm

Note that those on HB can claim help with payment of their council tax.

Or you can include an element of council tax in the rent, and so they don't have to make a claim for council tax rebate/assistance which does not then trigger anything else on that score.