How having a lodger may affect your council tax

Renting out a room to a lodger is a perfect way of filling an empty space, with the added benefits of a new friend and additional income in the process. Understanding the ins and outs of having a lodger is vital before you start searching, especially when it comes to the financial side of things.

You’ll need to factor in additional costs, such as bills, into the total your lodger should pay – but what about council tax? In this guide, we explore everything you need to know about lodgers and council tax so you know just how much to charge.

Do I pay more council tax if I have a lodger?

While it’s true that council tax is based on the property itself rather than the person or people living there, having a lodger will affect the amount you pay if you’re currently living alone.

This is because you’ll currently receive a tax reduction of 25%, known as the Single Person’s Discount. As you’ll no longer be considered a lone resident, you’ll lose this discount and notice an increase in your council tax bill.

There are a few circumstances in which you won’t, including:

  • If your lodger is currently in full-time education
  • If they pay council tax at another property.
  • If they receive benefits that mean they aren’t required to pay council tax

You’ll have to let the council tax office about your lodger whether they fall into one of these categories or not. It’s always best to have a chat with them to find out more about taking on a lodger and the implications, as they’ll be able to tell you if you lose your single person’s discount before you go-ahead.

If your household consists of two or more adults, you won’t have this discount anyway and shouldn’t notice an increase in your council tax bill.

Monday to Friday lodger council tax

What is a Monday to Friday lodger?

A Monday to Friday lodger is different from the regular type, as they only live there part-time. This is an option for people who work far away from their own property but don’t want to move completely. You can find both long and short term part-time lodgers as it’s often used by those doing contract work. 

Do Monday to Friday lodgers pay council tax?

When it comes to Monday to Friday lodgers, council tax changes won’t affect you if they reside and pay tax for another property, even if they only live there at the weekend. However, it’s worth noting that you may need to prove that this is the case by supplying paperwork to your local council.

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