Every Saturday, we answer your financial problems or consumer disputes – you can email moneyblog@sky.uk. Today’s problem is…
Five years ago, a tenant moved into a flat I own but unbeknownst to me did not register for council tax. When he moved out two years later, owing me three months’ rent, I started getting demands from a debt collection agency saying he hadn’t paid his council tax. I communicated with this debt collection agency, giving them the information I had found on Facebook on his current location. I heard no more until November 2025. I received a demand from the council for more than £3,500 for unpaid council tax, not only from him but also from the tenant who followed him. The council said I had to pay the debt. If and when it was resolved, they would refund me any money I was due.
Carole
Hi Carole. Thanks for getting in touch.
As you touched on, council tax generally falls to the occupier of a property and not the owner, unless the property is an HMO (a house with multiple people all separately living in it, like a house share).
This means that when a property is let to a single tenant or joint tenants under an assured shorthold tenancy, it is usually the tenant, not the landlord, who is responsible for paying council tax.
A tenant should register for council tax by contacting the local authority and filling out a “move in form”.
If they fail to do this and the council has no record of who is living at the property, the landlord may be contacted.
During our communication, and many months of back-and-forth on your part, this issue was thankfully resolved.
But now you (and you’re probably not the only landlord with such concerns) are worried it could happen again.
“I asked the council to check that the current tenant was paying their council tax,” you said. “They said they could not provide me with this information due to data protection rules.
“I am now left in the position whereby this could happen again in three, four or five years’ time.”
So where do you and other landlords stand, and how do you protect yourselves?
Councils may initially demand payment from landlords while they investigate the issue as they are entitled to recover any unpaid tax from whoever they reasonably believe is liable for it at the time.
If after an investigation it finds you were not liable, it should refund any overpayment.
I spoke to Sasha Charles, director and court advocate at Landlord Advice UK, about what you can do to make sure this doesn’t happen again.
He said there were several practical steps you can take to reduce the risk.
Strengthen your tenancy agreement
Ensure your tenancy agreement clearly says the tenant is responsible for council tax, as well as utilities.
“This is standard in well-drafted agreements and helps demonstrate liability if a dispute arises,” he said.
Notify the council of all tenancy changes
Do not rely on tenants to register themselves. As soon as a new tenant moves in or out, inform your local authority directly.
You should provide:
- The tenant’s full name(s)
- The tenancy start and end dates
- The property address
Include data-sharing provisions
“Your tenancy agreement should also include a clause allowing you to share tenant information with relevant third parties (such as the council or utility providers) for the purpose of administering council tax and services,” Charles said.
“This helps address data protection concerns and ensures you can lawfully pass on details when needed.”
The council was correct that it could not confirm whether a tenant was paying their council tax due to data protection laws, he said.
“While this can feel unsatisfactory, your protection lies in ensuring you have properly notified them of occupancy, not in monitoring payments,” he explained.
Keep thorough records
You should also maintain copies of:
- Signed tenancy agreements
- Check-in/check-out reports
- Correspondence with tenants and the council
If a dispute arises years later, this evidence will be “critical”. You should retain records for six years.
Where do you stand legally?
Charles said you were not automatically liable for a tenant’s unpaid council tax in a standard tenancy. However, if the council cannot identify or trace the liable party, you may be drawn into the dispute until the situation is clarified.
“The fact that you successfully challenged the demand suggests you had sufficient evidence, but ideally, this process should be avoided altogether through early notification and clear documentation,” he added.
“You cannot control whether a tenant pays their council tax, and you are not expected to. But you can protect yourself by making sure the council always knows who is living in your property so that you aren’t wrongly chased for council tax. That administrative step is often the difference between a straightforward situation and a lengthy, stressful dispute years down the line.”
