Council Tax Debt

The amount of Council Tax that you pay is dependant on the value of your home, as well as how many adults are living there and their employment status. The owner of the home, either joint or singularly, will normally be responsible for making payment.

Remember that council tax is a priority debt so it is important that you can budget for this expense.

Reduce Your Council Tax Bill

If someone in the house has a disability or you are the only adult, then you may be able to get discount through your local council. There can also be exceptions if you share a house with people who do not have to make Council Tax payments, such as a full-time student. If you think that you may qualify for discount for any of the above reasons then contact your local council to see if you are able to reduce your council tax bill.

You may be eligible for ‘Second Adult Rebate’ if you share your home with someone on a low income who does not pay rent, you do not already get a discount for them and they are not your husband, wife or partner. If you feel as though this describes your situation, then contact your local council for further information.

What happens if I do not pay my Council Tax?

You usually have to pay your yearly Council Tax bill in 10 monthly instalments, but your local council may also accept weekly payments. If you find that you are struggling to make your payment then you need pay what you can afford and contact the council straight away. You may be able to come to an alternative payment method or you may find that you are suitable for Council Tax benefit if your personal circumstances have changed.

If you fail to make payments, then your council can ask the magistrates court for a ‘liability order’ against you for the full amount of your council tax debt plus any court costs. The court will make the order unless the council have not gone through the proper procedures, you have paid the amount or the name on the summons papers are wrong.

Paying Your Council Tax

Contact your local council to agree a payment arrangement, if you do not pay your council tax then there are a number of ways they can collect the money:

• Bankruptcy: If you owe more than £750 then your council could declare you bankrupt. If this is the case then please contact One Advice for further information.
• Contacting Others: The council can demand that your partner gives them information about your financial circumstances.
• Bailiffs: The council can ask bailiffs to come to your home to seize goods which can be used to pay off your debts. Your council will send you a letter giving you two weeks notice and the amount that you owe.
• Deductions from your Income: The council can order deductions from your income, either through your wage or benefits. With your wage, this is called an ‘attachment of earnings order’.
• Securing the Debt against your Assets: The council could ask the count court for a charging order which would secure the debt against your home. This is usually only done with debts more than £1000.