If we need to collect unpaid Council Tax

If you’ve received letters from us regarding unpaid Council Tax, you may be wondering what you should do and what could happen next. It’s really important that you contact us as soon as possible to discuss your situation and see what help we might be able to offer.

If you’re having problems paying your Council Tax and need advice get in touch using the details at the bottom of the page 

Our process for recovering missed payments

First and second reminder

A first reminder is sent because our records show you have fallen behind with your payments. This usually means you’ve not paid an instalment on time, or that you paid less than you should have done. 

A second reminder is usually sent because you have had a first reminder, brought your account up to date and then fallen behind again.

Final reminder

This is normally sent if you have had a first reminder and not made any payment within the time frame provided or, you have had a second reminder, brought your account up to date and then fallen behind for a third time. 

This letter will not be asking for the instalments that have been missed. This letter will cancel your right to pay by instalments and you’ll be asked to pay the remaining balance on your account in full. You may be offered a final chance arrangement to stop any further recovery action. 

If you do not pay the account in full or make payments as per the arrangement offered you will be sent a magistrates' court summons. If you cannot pay in full you should pay as much as possible as regularly as possible. 

Magistrates court summons

This is sent to tell you that because you are in arrears we are going to court to obtain a liability order against you. 

This is a legal document which states how much you owe us. It gives us the power to send your account to the Enforcement Agents or order deductions to be made at source from your wage or DWP payments (if this happens, it will be a set amount decided on a percentage basis set the government). 

You may be offered a special arrangement to pay at this stage. If you cannot afford to pay the special arrangement offered, you should fully complete the means enquiry form issued with the summons and return this with your offer of payment. 

Costs of £80 will be added at summons stage.

You should only attend court if you have a valid defence, for example, you have paid the bill or you are not liable. However, you should contact us before the court date to discuss your case.

A current claim for Council Tax benefit or an appeal against your valuation band which has not been resolved are not recognised as valid defences against the issue of a liability order.

After a case goes to court

Once an account has been to court we may take one of the following courses of action depending on what we believe is the best way to secure payment. 

Enforcement

Your account may be passed to enforcement agents (bailiffs) to arrange collection of payment. Any arrangements for payment on accounts held by the enforcement agent must be made directly to their offices and not to us. 

Equally, any queries about enforcement agent fees must be addressed to the enforcement agent directly. Once an account is passed to the enforcement agent we will not ask for it to be returned unless there are exceptional circumstances.

Make deductions from your wages

An Attachment of Earnings Order (AOE) is sent to you and to your employer. The AOE instructs your employer to make deductions from your wage and send the money directly to us. Your employer has no discretion as to whether they make deductions. 

The AOE is a legal document and an employer can be prosecuted if they do not make deductions. You cannot cancel an AOE. Once it is issued it can only be stopped by either payment in full or instruction from us to the employer to withdraw the AOE. 

We can issue a maximum of two AOEs against you. If two are issued they are run simultaneously and not one after the other, meaning you will have two deductions made from your wage each week or month.

Make deductions from your benefits

If you receive Universal Credit, job seekers allowance, employment support allowance or guaranteed pension credit, we can ask the Department for Work and Pensions (DWP) to deduct money from your benefit source and send it directly to us. Only one deduction order can be set up at any one time. 

Deductions will end when the debt is paid in full or if you cease to be in receipt of the benefit.

Final options

Charging order

We may decide to place a charge against your property. We may then apply to the courts to enforce the sale of your property to settle your debt.

Bankruptcy proceedings

If you owe more than £5,000, we can petition for your bankruptcy. You’ll be served with a statutory demand giving you 21 days to clear the debt in full. If you cannot pay, we would seek to make you bankrupt. This action, if successful, will affect your credit rating and may lead to you losing your home and any other assets which you own.

Committal proceedings 

If you receive a committal warning you must make an arrangement to clear the debt. If committal action is taken it will be for the amount of Council Tax owed and any bailiff and court fees.

Failure to make payments or an arrangement for payment could ultimately result in you being sent to prison for a maximum of three months.