As a landlord, you have many responsibilities when it comes to managing your properties. One of the most important is understanding and managing council tax, as it can have significant financial implications for landlords. In this post, we will provide a complete guide on council tax for landlords, covering what council tax is, how it works, and what landlords need to know.

What is Council Tax?

Council tax is a fee that is charged by local authorities to fund local services such as rubbish collection, street lighting, and road maintenance. The amount of council tax you pay is based on the value of your property and the area in which it is located. The council tax covers services such as rubbish collection, street lighting, road maintenance, and other local services.

Council tax is calculated based on the value of your property, which is determined by the Valuation Office Agency (VOA). The VOA determines the value of your property by looking at factors such as its location, size, and condition. Council tax is divided into bands, from A to H, with Band A being the lowest and Band H being the highest. You can check the council tax band for a property here. 

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Council Tax and Landlords

If you have tenants living in your property, they are responsible for paying council tax. However, if your property is vacant, you are responsible for paying the council tax. In some cases, you may be able to get a discount on your council tax bill if your property is empty, but this will depend on the specific circumstances.

If your property is occupied by multiple tenants, the council will usually send one council tax bill to the landlord. The landlord is then responsible for dividing the bill between the tenants. However, if each tenant has a separate tenancy agreement, they may each receive their own council tax bill.

Council Tax Discounts and Exemptions

There are a number of council tax discounts and exemptions available to landlords. For example, you may be able to get a discount if your property is empty and unfurnished, or if it is being used as a second home. You may also be able to get a discount if you are a student landlord or if your property is occupied by someone who is disabled.

To claim a council tax discount or exemption, you will need to provide evidence to the local council. This may include a tenancy agreement, proof of ownership, or evidence of your tenant’s circumstances.

Dealing with Council Tax Arrears

If council tax payments are not made on time, the council may take action to recover the arrears. This may include taking legal action or sending bailiffs to collect the debt. As a landlord, it is important to avoid council tax arrears by ensuring that your tenants are paying their council tax on time. If you do find yourself in arrears, it is important to resolve the issue as soon as possible to avoid further action being taken.

It is also important to deal with tenants who are not paying their council tax. If your tenants are responsible for paying council tax and they are not doing so, you may need to take action to recover the debt. This may include legal action or eviction.

Conclusion 

Understanding council tax is essential for landlords to manage their properties effectively and avoid any financial implications that may arise.

It’s important to establish who is responsible for paying council tax depending on who is living in the property, and landlords also need to ensure that their tenants are paying their council tax on time to avoid arrears and any legal actions that may follow. Landlords should also take action to deal with tenants who are not paying their council tax, which may include legal action or eviction. 

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