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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.

Find out more about exemptions.


  • Private Sector Housing Team
  • Environmental Health
    Barnet House, 1255 High Road,
    Whetstone, London N20 0EJ
  • Tel: 020 8359 7995
  • Email: housingconditions@barnet.gov.uk

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