I have a house that I split into 3 self contained flats. It is registered as a HMO so therefore I pay the council tax for the whole house.

The council have come onto me about the basement flat, they are saying it should be a separate entry to the house and have recommended band B (44 – 65K). When I protested and said it was a HMO they said if it was totally self contained (which it is with separate entrance) then it has to be charged separately. I’m not adverse to this for the following reasons:-

Years before I had the house it was bedsits but only now it’s split into flats

I have got my HMO license.

The remaining 2 flats are self contained but there is a shared front door and hallway. They both have there own individual front doors and kitchens/bathrooms.

So my gut feeling tells me I should go along with it and let the tenants pay the council tax for the basement.

Should I then try and keep the house under band E (123k – 162k) and pay that myself.

I would appreciate some advise. I obviously have to consider the issues that could come about if I eventually sell the house.