Feeling worried about not being able to pay your council tax is normal, but don’t worry, this article is here to help. Every month, over 170,000 people visit our website for guidance on debt issues, just like this one.
We understand that you might be scared about legal action if you don’t pay your council tax, so in this article, we’ll explain:
We’ll also tell you about the steps the council might take to get the money you owe and help you understand what happens if you owe council tax from a long time ago.
Let’s get started.
How long can someone stay without paying council tax?
If you can get a reduced rate for living alone, it begs the question: how long can someone live with you before you lose your discount?
If you claim a reduced rate for single occupancy, but now have someone lodging with you who is classed as an adult, it is likely that the reduced rate no longer applies, and you should tell the local authority immediately.
According to council tax rules for lodgers, not informing your local authority can result in backdated underpayment debt Рand even fines up to £1,000.
But if the lodger usually lives in another home and makes council tax payments on that home themselves, it is not likely to affect your reduced rate as a single adult.
And if you rent out your home, the implications of council tax for landlords are as follows: If a tenant has vacated the property but left behind an unpaid council tax bill, make sure you inform the councilimmediately after the tenant moves out. They will follow up with the tenant and serve them a letter. Otherwise, the council may pursue you for the debt.
How much council tax do I need to pay?
How much you pay is determined by the size of your property and its location to nearby services and amenities. Every property is placed in a council tax bandthat decides how much needs to be paid – but these bands can be outdated and contested. They nonetheless help in calculating your county tax bill.
The bill you receive also depends on your personal circumstances. Some people are exempt (such as students), and others can get a council tax payment reduction under the UK council tax rules.
The council tax bands are as follows for properties in England. Scotland employs a different band valuation.
Band
Range of values
A
Up to £40,000
B
Over £40,000 and up to £52,000
C
Over £52,000 and up to £68,000
D
Over £68,000 and up to £88,000
E
Over £88,000 and up to £120,000
F
Over £120,000 and up to £160,000
G
Over £160,000 and up to £320,000
H
Over £320,000
Property valuation for council tax: These bands are based on the value of your property as of 1 April 1991.
To see how much council tax bill you should pay, visit your local council website via the following links:
If you are subject to council tax payments, you will not be able to get away without paying. Non-payment of your council tax can lead to court action, bailiff involvement, and in some cases, even prison. Those are the legal consequences of council tax evasions.
However, your credit score shouldn’t be affected by not making payments. But I must underscore here that if you are taken to court for non-payment of council tax, and the court issues a liability order, this can appear on your credit report. As a result, your credit score may take a hit.
If you are struggling to pay, consider speaking with a debt charity to assist with county tax debt management.
You could also try out our debt calculator to see if you are eligible for any of the UK’s 7 debt solutions.
Council tax reductions
A council tax bill is based on two adults. So, if you live alone or live with someone not classed as an adult, such as under 18s or full-time students, you can claim a reduced rate.
There are also council tax discounts available to people on a low income who receive state benefits, such as jobseekers’ allowance, income support, pension credit and employment and support allowance.
Other people who can get a council tax reduction include:
If you live with someone who has a disability and therefore you need to live in a larger home
If you are severely mentally impaired or living with someone who is.
Live-in carers. In Scotland, a carer is exempt from council tax between the ages of 18 until they turn 26 (must be providing care for at least 35 hours a week).
If you’re a care leaver and live in certain counties in England and Wales
A member of the armed forces, depending on your circumstances
Be sure to check your eligibility for council tax reduction, as you could save hundreds of pounds on the amount you pay.
What happens after non-payment of council tax?
If you have unpaid council tax arrears, what happens now? You should expect your local authority to do the following:
1. Reminder to pay
The local authority will send you a reminder asking you to clear the unpaid council tax within seven days.
If they do not receive the money within seven days, they will send another letter and could ask you to pay the whole council tax for the rest of the year.
If you are asked to pay the whole amount, this could be hundreds or even thousands of pounds. From personal experience, that can be a huge financial burden.
For this reason, it is best to pay within the given timeframe or seek charity advice as soon as possible. You can also agree to repay your council tax arrears in affordable instalments.
Use a budget to help you work out what is affordable to you!
If you still don’t make a payment or fail to come to an agreement on how much to pay in instalments, they could take you to court. If the council takes you to court, the amount you owe could increase.
If the local authority cannot collect the money you owe by the date in their letter, they could take court action.
When this happens, they ask the court to issue a liability order, which in a nutshell, makes you legally responsible for repaying what you owe- but it also gives the local authority permission to enforce the debt.
The cost of this document is £20, and it is usually added to what is owed.
3. Enforcement action
Once the liability order has been issued, you could contact the council and ask to pay the money you owe on your account, possibly in an affordable repayment plan.
Otherwise, the council could collect the council tax debt by:
Employing enforcement agents to collect it for them. The bailiff will give you seven ‚Äòclear’ days to pay the bill or offer a payment plan secured against your valuables (CGA).
If you do not make payments, they will come to your home to collect goods. The valuables they collect will be sold at an auction to repay your debt. If you need help dealing with bailiffs for council debts, check out our helpful guide.
Using an attachment of earnings. This is when the court instructs your employer to take payments from your wages before it hits your bank account.
Using a charging order. This is when the debt is secured against any property you own, meaning you repay when that property is sold.
Making you bankrupt. This is less likely and only applies to certain situations.
How long can you be chased for council tax arrears?
In England and Wales, you can only be chased for payments for six years, as per the conditions within the Limitations Act 1980. In Scotland, the rules are slightly different, and you can be chased for 20 years. So there’s plenty of time for council tax arrears in Scotland to be recovered.
The reason there is a time limit on recovering the monies is to protect the legal system. The Act has been designed to prevent a backlog of older cases landing on the desks in courtrooms and stretching resources.
However, be aware that the six-year countdown restarts if you ever acknowledge what is owed in writing or if you repay any amount. In such instances, the statute of limitations for council debt does not apply.
Can I be sent to prison if I don’t pay my council tax?
If you manage to avoid all further action and continue to refuse to make payments, you could be sent to prison for up to 90 days. The council will apply to the Magistrates’ Court for a court hearing, and you will receive a series of council tax court summons to attend.
If you do not attend the hearing, an arrest warrantcould be issued by the court.
If you attend and the judge decides you have wilfully rejected and neglected to clear your bill, you could be imprisoned. However, just because you cannot afford the payments is not enough to send you to jail.
If you need further support and guidance, don’t hesitate to speak with one of the reputable charities and organisations helping people deal with these types of money problems every day.
We also have more helpful guides and quick answers to confusing questions about council debts.
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