Including Bills

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    Including Bills

    Hi,

    What do other landlords do with council tax letting a property including bills? Do you include council tax? As countil tax isn't tax deductable. I haven't been charging CT to my tenants and I think I have shot myself in the foot. I'm thinking about lowering the rent and then making them pay % of CT each. Thus lowering my income and outgoings on things I can't deduct. Just wondered on what others do and others views?

    Thanks in advance.

    #2
    If it's a HMO, I think you are liable for the council tax bill- only one bill can go to each property. How you then pass on the cost is up to you, of course. Most landlords include it in the rent to keep things simple.

    Comment


      #3
      Council Tax most certainly is tax deductable:

      PIM2030 - Schedule A: deductions: general rules: rates and council tax
      Overview
      Some letting agreements make the rates or other charges the responsibility of the tenant, while under others they are to be borne by the landlord. If the agreement specifies that the charges are to be borne by the landlord it will normally be acceptable to deduct:

      rates on business premises,
      water rates and water service charges,
      council tax (but see below - it may be more common for this to be the responsibility of the tenant).
      If part of the property is let and part is occupied by the landlord, you may allow a deduction of a suitable proportion of the charges.

      From the Property Income Manual on the HMRC website.

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        #4
        Thanks, I have found thsi useful. Whats a HMO?

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          #5
          House in Multiple Occupation.
          If your properties are all let to sole occupiers ie one family to a property, why give yourself the extra responsibility of paying their council tax? Let the tenant pay, that way, if they default, it does not affect you, the council will chase them.

          Comment


            #6
            Originally posted by MrWoof View Post
            House in Multiple Occupation.
            If your properties are all let to sole occupiers ie one family to a property, why give yourself the extra responsibility of paying their council tax? Let the tenant pay, that way, if they default, it does not affect you, the council will chase them.
            I agree BUT ensure that the Tenancy Agreement explicitly requires T to pay Council Tax and all other outgoings irrespective of to whom an invoice is addressed.
            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).

            Comment


              #7
              Also remember that students do not pay Council Tax; they are treated as non-existent.
              This applies even for purposes of the single-person 25 % discount rule, so a couple (one student, one not) still get the 25% off.
              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).

              Comment

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