Landlord paying council tax

[dt1981]

Hi,

I moved into my current flat in August last year, and while I was agreeing the contract I was informed by the letting agency that the landlord wanted to pay the council tax for the duration of my tenancy. I'm not entirely sure why he offered to do this, but was happy to go along with it providing it was written into the tenancy agreement that he would be responsible for paying it, which it was.

I have just received a council tax enquiry form asking for details of who lives at the property currently so the next year's tax can be calculated. I forwarded this to the landlord to complete however it occurred to me that he may not have informed the council that I am living there as a tenant for whatever reason. If this is the case, would this cause an issue when I move and have to provide details of my previous address (ie, I tell them I lived at an address whilst they have no record of me being there)?

I have no reason to believe he isn't paying the council tax, but I deal with the letting agency who in turn deals with the landlord so I cannot ask him direct when it comes to resolving anything to do with the property. Do you think I should contact them about this or would it not be an issue when it comes to me moving out?

[PlanB]

Re: Landlord paying council tax

Whose name was on that council tax enquiry form, yours or the landlords? Landlords aren't known to be overly generous when it comes to paying other people's bills so I suspect he's up to something. I won't go as far as suggesting he's telling the council he lives there so as to claim HB as well as your rent, but it has been known to happen :nono:

There could be another reason such as a *money laundering situation* since banks, building societies and DWP all require proof of residence such as a council tax bill in your name before doing business. Maybe the Landlord needs it for this reason.

The person(s) occupying a property is liable for council tax so even if you didn't pay it your Landlord would not be liable for the debt so I can't for the life of me think of any honest reason for his insistence on paying your bill direct :noidea:

Are you on the electoral roll because that's the best way to prove a previous residence? More interesting, is your Landlord still on the electoral roll for a similar reason eep:

[dt1981]

Re: Landlord paying council tax

There was no name on the enquiry form, it was just addressed to the property. I am on the electoral roll, and am the only person listed on there as being resident at my property.

[labman]

Re: Landlord paying council tax

I'm no expert on this, but surely if the OP takes this letter, along with a copy of the tenancy agreement stating the CT is being paid by the landlord, they would see the OP was not overtly avoiding any CT liability?

Given there's no reason to question whether or not the landlord is paying the CT, surely he should be given the benefit of the doubt - innocent until proven guilty (with caution) and all that ....

[wales01man]

Re: Landlord paying council tax

If the tenancy agreement says the landlord is paying it must be a contract so the OP can take this to the council,maybe they can post agreement so someone on here can advise

[dt1981]

Re: Landlord paying council tax

Below is the part of my contract detailing the landlord's agreement to pay the council tax

http://imageshack.us/photo/my-images/208/contractn.jpg/

[PlanB]

Re: Landlord paying council tax

There was no name on the enquiry form, it was just addressed to the property.

Why was there no name on the enquiry form? If the council tax account is established in the Landlord's name then his name would be on that form. Each year he would be sent a new bill just like everyone else. An enquiry form is only sent out if there is no name on the account and the local authority wants to know who is living at the property and liable for the council tax and who they should bill. Or when they want a declaration in writing if they suspect the occupier is claiming a single person or student exemption when they're not entitled to it.

As far as the local authority is concerned whoever is occupying the property is the person legally liable for the council tax and that's that. If the liable person has a deal whereby a third party pays the bill that's fine but not their problem. But you cannot have a council tax account on a property you don't live in unless it's a holiday let (where you typically pay business rates) or empty (where the default position is the owner can claim a Class C exemption for up to a maximum of 2 months, recently reduced from 6 months, but the account is still in their own name).

I'm cynical until proven otherwise :wink:

[wales01man]

Re: Landlord paying council tax

Kin ell never knew that the Op needs to contat council quick to sort this out before hes posting on here about bailiffs something dont seem right here

[dt1981]

Re: Landlord paying council tax

I have e-mailed the letting agency asking them to confirm with the landlord:

1. Council tax payments are up to date
2. I am named as a resident of the property on the council tax account

I will post again when I receive a response, thanks for your advice so far.

[PlanB]

Re: Landlord paying council tax

That's a very good plan. I'd go a stage further and call the council tax department to tell them the truth of the situation and pass on your Landlord or the letting agent's details for future contact. Your Landlord can't object if everything is above board can he. You're just doing it to be helpful in case you forget to pass on any important paperwork from the council

I'm looking at this logically. If the Landlord wants to spare you the expense of council tax then why doesn't he just charge you less rent and tell you to pay it yourself? Less rent coming in means he'll have less tax to pay HMRC too. So there has to be a reason for this unusual arrangement

[labman]

Re: Landlord paying council tax

Landlords liability for council tax

 Whilst in general it’s the tenant that pays; there are several important cases where landlords need to be aware of a shift in liability, exemptions from the charge and where a landlord is able to claim a discount on the council tax bill.

Firstly, the 20% of landlords that let Houses in Multiple Occupation (HMO properties ) are liable by statute for the council tax charge, even where the property in fully let. Another situation that frequently arises is where a landlords buy-to-let property is empty for a period because of a letting void; or whilst the property is being refurbished. Finally, where landlords let to students; the property is exempt from council tax. In all these cases the law can get confusing for both landlord & tenant, especially as individual Local Authorities interpret the rules differently

HMO landlords and council tax

Landlords that own a property that has been classed an HMO property are liable under the Council Tax Regulations for the payment of council tax due on the building.

As many landlords are aware; there are several definitions of what constitutes an HMO. The confusing aspect is that they are very different. This means that a property that could not be considered an HMO under the planning regulations may constitute one under the Housing Act 2004 and thereby require a licence.

(http://www.propertyhawk.co.uk/index....agazine&id=459)

[dt1981]

Re: Landlord paying council tax

Thanks for the above post. I did look into the various legislations at the time of renting the property but couldn't find anything to say that the council tax must definitely be paid by one or other party. There are a lot of grey areas. I felt that as long as it was written into the contract, it would exempt me from any responsibility.

[PlanB]

Re: Landlord paying council tax

Are you living in a HMO or renting on a AST? I'm a landlord so I'd be really interested to know whether there could possibly be any reason why my tenants could be exempt from council tax liability other than as a student or in receipt of council tax benefit. Even then the tenant is still legally liable but the amount charged is zero. Labman is right that HMOs are different. Let us know what you discover. I still smell a rat with this situation because it just doesn't make sense :noidea:

[dt1981]

Re: Landlord paying council tax

No, it's an AST. There's no reason why he should be paying the council tax as far as I'm aware. I just need to see what the response is from the letting agency is before I make my next move.

[labman]

Re: Landlord paying council tax

I don't know if it's in that link but there was something I read about a Landlord paying CT for 2 months after a major refurbishment as well.