lodgers and council tax

  • Filter
  • Time
  • Show
Clear All
new posts

  • lodgers and council tax

    Hi - I wonder if anyone can help me with this ...

    I am in the process of taking on two lodgers in my own home. I have been living there alone to date and receiving a single person reduction on Council Tax. The lodgers have their own homes and will usually stay here only four nights per week. Do I therefore have to pay full council tax whilst they reside part time with me?

    Hope to hear from someone on this. Many thanks.

  • #2
    Why not ask the council?
    Allow tenants to protect their own deposits. I want free money when they do it wrong


    • #3
      Presumably because he/she does not want to alert them in case they say something he/she does not like? There is plenty of guidance online, at the gov website and on any council website.

      You could also ask other councils on their viewpoint? By telephone and online? I would think that any additional council tax cost is probably allowable against income, but you would need to check that.

      With 2 lodgers will your lodger generated income be over the £4,250 tax free allowance?

      Before acting on forum advice, you may wish to consult an expert, someone who has all the relevant facts, and who accepts liability for their advice.


      • #4
        Are the intending lodgers themselves students? If so, they're exempt from Council Tax anyway (subject to proof).
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).


        • #5
          Re pms response - yes indeed you are correct - I have been looking on line for an answer to this and there seems to be numerous random decisions by councils charging tax unfairly - so I just thought I would see if anyone had any first hand knowledge of this scenario.

          The rental - assuming it is for a full year - will exceed the allowance for the rent a room scheme and therefore be reported as taxable income.

          No - not students.


          • #6
            There's one Council Tax bill for each home. Usually the person living in the property has to pay the bill.

            The person at the top or nearest to the top of the following list has to pay the bill:

            • lives in the property and owns it
            • lives in the property and has a lease (this includes 'assured tenants' under the Housing Act 1988)
            • lives in the property and is a 'statutory' or 'secure' tenant
            • lives in the property and isn't a tenant but has permission to live there
            • lives in the property (for example a squatter)
            • has a lease of six months or more on the property, but doesn't live there
            • owns the property but doesn't live there

            Certain people aren't counted when working out the number of adults who live in your home. If the property isn't the main home of the people living there, then a discount may also apply.

            A “resident” is a person of 18 years or over who lives
            in the dwelling as their only or main home.

            Whether a property is treated as your main home will
            depend on a number of factors, such as how much time
            you spend there and whether it is your family home. You
            cannot have more than one main home for council tax

            As you can see from the above advice this seems potentially a grey area...
            I live in and own the property - so it is clear I pay the bill - easy

            People who are not counted - if it is not their main home discount may apply - this seems to be an area where there are no absolute guidelines and could be subject to the vagaries of the local council

            I presume from the rest of the guidance if my council rule that I pay full council tax on behalf of the part time tenants - who can only have one main home - then the two tenants can cease to pay council tax at their other addresses

            The information from the various websites is not clear - hence I posed the question here in case someone knew the answer??


            • #7
              Four nights per week is more than half the time - so you could argue your home is their principal residence and adjust the rent (giving appropriate notice) to cover the cost to you of the additional Council Tax payable. They may then apply to be exempt from paying CT at their other places.

              However, if they have families in their 'other' homes, it does not seem unreasonable to argue that those are their 'main homes', in which case, you will probably be able to persuade the council that you should only be paying the CT for a single resident.

              Just ask the council!
              'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations


              • #8
                Many thanks everyone.

                Okay I will ask the council and post back with the response because that might be helpful for others who are taking weekday lodgers - who by virtue of their status have few tenancy rights as such and in this case as they are professional IT contractors are fairly transitory - as would many other working people be who are away from home to work and seek lodgings.


                Latest Activity