Splitting bills sounds simple until the first winter energy bill lands, someone moves out mid-month or one person realises the broadband is in their name and nobody has paid them back. Here's how to work out what's shared, choose a fair way to split it and keep track without chasing anyone.
Which bills are usually shared
In most UK house shares, the shared bills are:
- Gas and electricity, usually the biggest and the most changeable.
- Water, either a fixed charge or metered.
- Broadband, and sometimes a shared streaming subscription.
- Council tax, if the house has to pay it (see below).
- TV Licence, if anyone watches live TV or uses BBC iPlayer.
- Household basics like loo roll, cleaning products and washing-up liquid, often from a shared kitty.
Before you split anything, read your tenancy agreement. Some rents include some or all bills, and you don't want to pay twice.
Council tax in a house share
If everyone in the house is a full-time student, the household doesn't have to pay council tax, according to GOV.UK; you may need to apply for the exemption if a bill still arrives. If the house is a mix of students and non-students, you'll get a bill, though the household might qualify for a discount. In some shared houses, particularly where each room has its own tenancy, the landlord is responsible for council tax instead. If you're not sure, ask your landlord and your local council.
TV Licence
Whether you need one licence for the house or one each depends on your tenancy. As a rule of thumb, a joint tenancy usually needs one licence, while separate tenancies for each room may need separate ones. Check with TV Licensing for your situation before you split it.
Three fair ways to split the bills
1. Split everything equally
The simplest option, and the one most houses use. If the shared bills come to £240 a month and there are four of you, each person pays £60. It's easy to work out, easy to check and avoids arguments about who used more hot water.
2. Split by room or by agreement
If one person has a much bigger room or an en suite, the house might agree that they pay a little more. This is more common for rent than for bills, but it can make sense for energy if one room has extra heaters. Agree the percentages in writing before anyone moves in, so it doesn't feel personal later.
3. Split by use, for the things that clearly differ
If one person works from home every day with the heating on, or one person is away for half the year, the house might agree to split energy differently while keeping broadband and water equal. Be careful: splitting by use is fair in theory but hard to measure without separate meters, and it can turn into a running argument. Only use it when the difference is big and obvious.
Whatever you choose, write it down and make sure everyone agrees. "We split everything equally, except energy, where Alex pays 30% because they work from home" is clear and easy to stick to.
Whose name goes on each bill?
Whoever's name is on an account is responsible for paying it. If one person holds every bill, they carry all the risk if someone else stops paying. A few ways to spread that:
- Share the accounts out, so one person has energy, another has broadband and another has water.
- Put more than one name on an account where the supplier allows it.
- Use a joint account or bills pot that everyone pays into on the same day each month, with the bills paid out of it.
It's also worth knowing that on a joint tenancy, the landlord can usually ask any of the tenants for the full rent if one person doesn't pay. That's another reason to agree how money works from day one.
Smoothing out winter energy bills
Energy costs much more in winter than in summer. If you pay the actual bill each month, December can be a shock. Many houses agree a fixed monthly amount per person instead, paid into a pot or a direct debit that's set to cover the year, then settle any difference when the supplier reviews your payments. Take meter readings regularly so your bills are based on what you actually use, not estimates.
Keep a running record of who owes whom
Most arguments about money come from nobody being sure what's been paid. Keep one shared record of:
- each bill, how much it was and who paid it
- each person's share
- who has paid back, and when
Settle up on a set day, such as the first of the month, rather than paying back bits here and there. It's much easier to see that everything balances.
When someone moves in or out
- Take meter readings on the day someone moves out, and photograph them.
- Split the last bill by days, so the person leaving pays only up to their move-out date.
- Move any accounts in their name to someone who's staying, or close them and open new ones.
- Settle up fully before they go, including the shared kitty.
Have the money conversation early
It feels awkward, but the best time to agree how bills work is before anyone moves in, or in your first week. Agree which bills are shared, how you'll split them, whose name goes on what, when everyone pays and what happens if someone is short one month. Ten minutes of slightly awkward conversation saves months of tension.