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  • HMO & Multi-Lets

    How to register the council tax?

    how exactly do you register for coulcil tax on a hmo?

    LL pays the council tax, but what do you tell the council?

    While its empty the LL can go on as the council tax payer and you get a month free for the property being empty. It then reverts to 100% however its still listed as empty.

    Do you just tell the council the LL is responsible for the council tax but its let out and you include all bills in the tenants rent??

    Or some other method?

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    Notify the council tax dept that you are the owner and you'll be letting it as a HMO. As (and when) occupiers moved in contact the council with a copy of the letting agreement and advise them that a room is being let - contact them again when someone leaves and you'll be fine.

    Also make sure you're sorted on any HMO licensing that needs done.

    Craig / LGFA92

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    http://www.LGFA92.co.uk council tax consultants.
    Posting as @CouncilTaxGuy on Twitter
    Why not look at our blog at http://www.lgfa92.co.uk/blog


    Any posts are my own opinion on legislation and may vary from your local authorities !

    oh right so you have to notify them each and every time you get another tenant?

    does everybody really do this? it makes sense but i was under the impression that you would just have it in the LL name and leave it at that.


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    In theory you don't have to tell them unless they ask but you risk the council later serving notice on you and asking for retrospective information (for which they can issue a penalty for non-provision etc)

    Keeping it updated also ensures any discounts/exemptions which are claimed are correct (and if your tenants claim HB is looks odd if the they're not recorded as resident).

    Craig / lgfa92

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    http://www.LGFA92.co.uk council tax consultants.
    Posting as @CouncilTaxGuy on Twitter
    Why not look at our blog at http://www.lgfa92.co.uk/blog


    Any posts are my own opinion on legislation and may vary from your local authorities !

    The vast majority of L/L's and Agents notified of every change (I spent 10 yrs working in a council tax dept) - quite often the one's who didn't were the 'dodgy landlords'.

    Craig

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    http://www.LGFA92.co.uk council tax consultants.
    Posting as @CouncilTaxGuy on Twitter
    Why not look at our blog at http://www.lgfa92.co.uk/blog


    Any posts are my own opinion on legislation and may vary from your local authorities !

    I wouldn't notify them of every change of tenant. I've bought a house and it's currently undergoing renovation before letting out as an HMO. I am already paying the council tax and will just carry on once it's let out.


    There's enough admin without letting the council know about every change of tenant. As long as they are getting it paid they have no reason to go after you.

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    I think it would be best to register as the landlord but also the council tax payer? Pay the council tax yourself each year in full. If you state to them you are specifically an HMO landlord then you may be more exposed to the risk of the rooms becoming indiviudally banded as you will be on their radar then (see other threads on this forum)? I would simply state you are the landlord and it has been agreed that you pay the council tax in full. The council will just amend their records so you receive the bill each year to your address or you can set up a direct debit with them.

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    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    As a Council Tax HMO the landlord has no choice over receiving the council tax bill as it's specifically covered in legislation (council tax (liability for owners) regs 1992).

    As yet I've not come across any specific current plans to target rooms to be individually banded however (based on the Valuation Tribunal use of case law) there's always the risk that some landlords may be hit if the local Valuation Officer decided to push the issue (this has always been the case).

    It's not unusual for councils to monitor the local HMO licences to pick up HMO's just to make sure that the bills are being issued correctly as they have a duty to ensure council tax liability is correctly attributed for the correct reason.

    Craig / lgfa92

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    http://www.LGFA92.co.uk council tax consultants.
    Posting as @CouncilTaxGuy on Twitter
    Why not look at our blog at http://www.lgfa92.co.uk/blog


    Any posts are my own opinion on legislation and may vary from your local authorities !

    If you rent out a property to several people and they each have an individual tenancy agreement with you, the property is classed as House in Multiple Occupation for Council Tax purposes. You, as the landlord, will be responsible for paying the Council Tax and you will get the bill. As a landlord you are responsible for paying Council Tax if the property is designated as a house in multiple occupation (HMO).

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    Jed Fazal
    Specialist in Guaranteed Rent & Property Management services

    It will be interesting how Council Tax will be regarded when properties not currently HMO will be designated so for three or more occupiers.

    Currently with one AST the CT is payable by the tenants.

    If the property is newly designated as a HMO will the LL be liable!?

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    If it doesn't meet the criteria to be a Council Tax HMO by virtue of been rented out under separate tenancy agreements etc it can also fall to be one by virtue of the meeting of the additional criteria which says:

    "was originally constructed or subsequently adapted for occupation by persons who do not constitute a single household;"

    Craig

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    http://www.LGFA92.co.uk council tax consultants.
    Posting as @CouncilTaxGuy on Twitter
    Why not look at our blog at http://www.lgfa92.co.uk/blog


    Any posts are my own opinion on legislation and may vary from your local authorities !