Council and income tax
For landlords of private rentals
When you start renting out a property, you must tell HM Revenue and Customs (HMRC) and you may have to pay tax. If you don’t, you could be charged a penalty.
To read more on property rental income tax please visit the GOV.UK website
Who is responsible for paying council tax in an HMO?
In a HMO, generally the landlord is responsible for paying council tax. But, if tenants have a licence to occupy the entire dwelling and are jointly and severally liable to pay rent for the dwelling as a whole (usually by being on a single tenancy agreement), it is no longer an HMO by the council tax definition and the council tax liability falls to the tenants jointly and severally.
Households where everyone is a full time student, do not have to pay council tax but if you do receive a bill, you can apply to the council for an exemption. Where only some of the household are full-time students, you may qualify for a discount. You can contact the Councils Revenue Services for further information and advice.
- Private Sector Housing Team
- Environmental Health
Barnet House, 1255 High Road,
Whetstone, London N20 0EJ
- Tel: 020 8359 7995
- Email: email@example.com