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Council Tax arrears
Your Council Tax (previously known as the Community Charge or Poll Tax) is a priority debt because if you fail to make the necessary payments, and it can be proved that you could have afforded to pay, you could be imprisoned – however, you will be given plenty of prior notice so that you can take the appropriate action and avoid this happening.
The amount of Council Tax that you are expected to pay is based on the value of your home. There is only one Council Tax bill for each dwelling (whether it is rented or privately owned) and some houses can be exempt from paying Council Tax.
Council Tax is administered by your Local Authority (council).
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Who has to pay?
Anyone over the age of 18 will be expected to pay Council Tax. There will usually be at least one person in the household who will be liable. This person may share the responsibility with someone else, such as a spouse or partner, and sometimes it may be the owner, rather than the resident, who will be liable.
If you think that your Council Tax bill is incorrect or that you are not liable to pay Council Tax, you should inform your Local Authority (council) or seek professional advice – for more information on where to get advice, please click here
How much will I have to pay?
There is no set amount, however, you will usually have to offer an extra monthly payment to clear your arrears, while also maintaining the regular Council Tax payments to keep the arrangement going. If you are cannot afford to clear the arrears within the time suggested by your Local Authority, explain why not and start paying an amount which you can afford.
If you are receiving either Income Support or Income-based Job Seekers Allowance you can have a standard amount deducted from your benefit. This will be paid directly to the Local Authority to ensure that your Council Tax arrears are paid. Your nearest Citizens Advice Bureau will be able to tell you the current figures and the maximum amount that can be deducted from benefit.
You can also use these amounts as a rough guide of how much to offer if your income is around the benefit level – however, if your income is a lot higher than this, then you will probably have to offer more money to pay your arrears, and there is no set formula of what will and will not be accepted by the lender.
If you are receiving any other form of welfare benefits, such as the Contribution-based Job Seekers Allowance, deductions can only be made from your benefit in certain circumstances, so seek advice.
Council Tax Benefit, the Second Adult Rebate and discounts
If you are on Income Support or Income-based Job Seekers Allowance you should automatically qualify for Council Tax Benefit (although you will still need to apply by completing a claim form).
If you are living on a low income, you may also qualify for Council Tax Benefit – however, this may only be sufficient to cover a portion of your Council Tax bill, and not necessarily all of it – for more information on Council Tax Benefit and how to claim, please click here
You may be entitled to the Second Adult Rebate if you have at least one other adult living with you, who is not liable to pay Council Tax – however, you cannot get the Second Adult Rebate at the same time as receiving Council tax Benefit (you will receive whichever is the greater amount).
There are some groups of people, students for example, who will be disregarded when a Council Tax liability is being decided, and some people may qualify for a discount:
- If you live alone, your bill can be reduced by 25%
- If you have a disability and your home has been specially adapted, you may also qualify for a reduction
- In certain circumstances, the severely mentally impaired may also be entitled to a discount
If you think that you may be entitled to claim the Second Adult Rebate, Council Tax Benefit or you are eligible for a discount based on your individual circumstances, you can get further information on how to apply by contacting your nearest Citizens Advice Bureau.
What if I can’t afford to pay?
If at any time you feel that you can’t afford the monthly instalments, don’t just stop paying:
- If your income has been reduced you may qualify for Council Tax Benefit. Make a claim or seek further advice if you are in doubt
- Keep paying whatever you can afford – the council would rather receive a token payment than no payment at all
- Contact the council immediately and try to come to an arrangement
- Complete a personal budget to help illustrate your situation
What happens if I don’t pay?
If you don’t keep up with your payment arrangement with the council they will apply to the Magistrates Court for a Liability Order. This says that you are due to pay your Council Tax and it has not been paid. The Council will also apply for a Liability Order if your payments will not clear the arrears before the next bill is due.
If you don't make an agreement with your Council or don't keep up the agreed payments, once the Liability Order has been granted the Council can use a number of methods to make you pay:
- Bailiffs – Bailiffs will be sent to visit your home and can take goods to be sold to pay off your debt. Contact the Council and try to come to an arrangement to pay. Use your personal budget to support your offer and start paying immediately. The Council may say that they cannot negotiate with you whilst bailiffs are involved and that you should contact them instead. It is usually better not to allow a bailiff into your home. Seek advice immediately.
- Deductions from Income Support/Job Seekers Allowance – If you are on Income Support or Income-based Job Seekers Allowance you or the Council can ask the Benefits Agency to take a standard amount from your benefit each week to pay your Council Tax
- Attachment of Earnings – Similar to the deductions from benefits, if you are employed, the Council can order your employer to deduct an amount from your wages to pay your Council Tax. The amount will be a fixed percentage of your earnings.
- Imprisonment – Seek professional advice immediately if you receive a notice of committal to prison. This is the last option for the Council. You should not be sent to prison if you haven't paid because you don't have enough money.
You must attend the court hearing and show the court your personal budget to explain why you have not been able to pay. The hearing is called a means enquiry.
In exceptional circumstances, the court may order your Council Tax arrears to be written off, but normally they will order you to pay an amount each month until the debt is clear. If you find that you can't pay what the court has ordered, keep paying what you can afford and apply to the court to reduce the amount you have to pay. If you do not pay this amount regularly the court is likely to send you to prison for up to 3 months. If you go to prison for non-payment of Council Tax in the year for which the payment is due you will remain liable even after you are released. In practice this debt may be written off. If you receive a prison sentence for not paying Council Tax for a previous year, you will still be liable to pay your current Council Tax although the debt for which you were imprisoned will be written off.
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