You usually pay your Council Tax bill in instalments over 10 months. If you’re having difficulty making a payment, contact your local council immediately and explain the situation – the longer you ignore a debt problem, the worse the situation becomes.
If you can't make a Council Tax payment, make a list of everyone you owe money to (your creditors) and prioritise your debts so that you know which debts you need to pay off first. Next draw up a personal budget so you can work out what you can afford to pay each creditor.
You can then contact your local council and offer to make regular payments you can afford. When you reach an agreement it's important to honour it, so only agree to payments you can manage. You should also find out whether you qualify for help, such as Council Tax Benefit.
You may be able to arrange for payments to be made towards your Council Tax directly from your Income Support or Jobseekers Allowance. Once this is set up, the council shouldn’t take any other action to get payment. Ask your local Jobcentre Plus office for more information.
If you make arrangements to pay but don’t, your council can ask the Magistrates Court for a ‘Liability Order’ (a demand for you to pay the full amount you owe, plus costs).
The court will check that:
- the council has gone through the proper procedure
- you haven’t paid the money owed
- your name is on the summons
It’s important to let your council know straight away if you think any of the facts are wrong or out of date.
It’s best to attend the court hearing so you can explain your situation and answer questions in person. The judge can then fit the order to your circumstances.
If the court orders you to make payments you can’t afford, you should continue to make payments you can afford and apply to the court to reduce the demand.
If the court makes a Liability Order against you and you pay nothing, your council can take action.
Deductions from wages
Your council can order your employer to deduct a regular amount from your wages toward your unpaid Council Tax. If this causes you financial hardship, you can ask your council if they’re willing to accept smaller payments.
Bailiffs
Your council can send bailiffs to your home to seize property to sell. The money raised goes towards paying your debt, plus costs. They’ll send a letter at least two weeks before the bailiff’s first visit stating how much money you owe under the Liability Order.
You can contact the council and the bailiffs and offer to come to an agreement on payments. It’s important to do this straight away, because if the bailiffs make a visit their costs could be added to your bill.
Court hearing
If your council has tried using bailiffs but your Council Tax still isn’t paid in full, they can apply to the Magistrates Court to impose further penalties. There’s a possibility you could be jailed if you have ‘wilfully refused’ or ‘neglected to pay’ when you could have paid.
The court will consider:
- why you haven’t paid
- whether you could have paid
It’s best to attend the court hearing so you can explain your situation in person.
In most cases the court will order you to pay a certain amount each month to clear the debt. If you still refuse or neglect to pay, you could be jailed for up to three months.
