Here is some general guidance- but you need to speak to your local council for rules specific to your local authority. There is no direct correlation between earnings and council tax so your tax code/allowance does not impact your council tax.
If there are already two (or more) adults living in the property, taking in a lodger won’t change your council tax.
However, if you’re currently living alone, taking in a lodger could affect your council tax. Council tax is chargeable on the property (not per person), but if you currently benefit from the single person’s council tax discount of 25%, taking in a lodger means you’ll lose this.
There are some exceptions though. You’ll still qualify for your discount if your lodger is one of the following:
- In full-time education
- Already paying council tax somewhere else (this can apply to Monday to Friday lodgers)
- Receiving certain benefits
When it comes to Monday-Friday lodgers it's best to check in advance as it doesn't necessarily mean you'll keep your discount. Speak to your local authority first to be on the safe side.You can cover the increase in council tax by charging a little more rent, but think about this before taking in a lodger rather than afterwards (obviously).
Whatever the situation, if you currently live alone and take in a lodger you’ll need to inform your local authority.
