PDA

View Full Version : landlord or tenant paying council tax?



twiceshy
08-10-2011, 11:59 AM
Our tenant is now set up in our property and everything's running fine. But we have a puzzle about the council tax.
For convenience, we decided to leave the council tax in our name and just pay it from the tenant's rent; that was all accepted by the tenant as ok.

However, it seems the district council has a different view. I asked the council tax dept whether it was ok for us to carry on paying the council tax in our name, rather than mess about with transferring all the paperwork to the tenant. They seemed happy with that and gave us figures for what the remainder of the year's charges would be.

Now I've received a new calculation; and it shows that the council tax is still being calculated on a "2nd home--prescribed Class B discount" basis. I thought that single occupancy attracted a 25% discount. Does this mean that I am being "penalised" for still paying the council tax myself (as a landlord) and that the 25% discount will only apply if the tenant actually pays the council tax himself?

There is a difference between the two calculations of some £40 for the six-month period involved, so over £80 for a year.

It may be an error, but I thought I'd ask here before trying to contact the CT department; they are a nightmare because the phones never get answered.

Snorkerz
08-10-2011, 12:05 PM
There is minimal admin involved in transferring Council Tax and by keeping it in your name you run a not inconsiderable risk that the tenant won't pay their rent so you end up paying the tax.

Ask your tenant if you can transfer the council tax into their name and then either give a rent reduction equal to the tax, or simply agree to pay the tax.

It is most unusual for single household properties to not have the council tax paid by the tenant.

mariner
08-10-2011, 17:54 PM
By keeping rental property in your name it became your 2nd home and liable for applicable 2nd home CT rate, even when empty.
If T pays CT on the property, as his only / main residence he would be eligible for any single adult discount. Accredited students not liable for CTax but you cannot claim any CT exemption. Also if CTax is payable by T then your Authority may allow you 6 month empty prop allowance.
If T resp for paying CTax direcy to Council, if they move, cancalling CT is the first thing they do, the Council writes to LL transferring CTax to LL. Often the first time LL relises Ts have gone.
Tx is easy, poss achievable with simple tel call or email to Council, providing Ts name, Address of prop and date T started. Explain to T first.

twiceshy
09-10-2011, 09:01 AM
@mariner
Oh gawd that's ridiculous; all I'm doing is paying the council tax on behalf of the tenant. That's a right wangle. In that case, since the tenant hasnt yet completed his signing of the contract, I'm going to alter it.
I never thought it could be manipulated like that.

duckpond
09-10-2011, 10:12 AM
Our tenant is now set up in our property and everything's running fine. But we have a puzzle about the council tax.
For convenience, we decided to leave the council tax in our name and just pay it from the tenant's rent; that was all accepted by the tenant as ok.

However, it seems the district council has a different view. I asked the council tax dept whether it was ok for us to carry on paying the council tax in our name, rather than mess about with transferring all the paperwork to the tenant. They seemed happy with that and gave us figures for what the remainder of the year's charges would be.

Now I've received a new calculation; and it shows that the council tax is still being calculated on a "2nd home--prescribed Class B discount" basis. I thought that single occupancy attracted a 25% discount. Does this mean that I am being "penalised" for still paying the council tax myself (as a landlord) and that the 25% discount will only apply if the tenant actually pays the council tax himself?

There is a difference between the two calculations of some £40 for the six-month period involved, so over £80 for a year.

It may be an error, but I thought I'd ask here before trying to contact the CT department; they are a nightmare because the phones never get answered.
Seems to be a very cheap council tax either way!
Are those figures correct?

twiceshy
09-10-2011, 18:31 PM
The more I say, the more the issue is likely to be misinterpreted. The council tax payable by a single-occupant in this particular case works out at around £90 per month (WITH the discount).
But the council wants to charge me £115 per month; all because I said I would pay the tax on the tenant's behalf.

I am not going to do any more now, other than (a) put the details in front of the tenant this week (who is actually very amiable and understanding) and (b) chase up the district council and get them to explain in minute detail exactly what the heck they have put on their bill.