How to Avoid Council Tax? 

Struggling with council tax debt can feel tough. But don’t worry, you’ve come to the right place for answers.

Every month, over 170,000 people come to our website seeking advice on their debt problems, so you’re not alone.

In this easy-to-read guide, we’ll cover:

• The steps to take if you’re unable to pay your council tax.
• How council tax bands work.
• How to ask the council to legally write off your council tax debt.
• The effects of not paying council tax on your credit score.
• The legal issues that can come from not paying your council tax.

The average council tax debt among those seeking support from Citizens Advice has remained stable at £1,100 over the last year.¹ So, it’s reasonable to want to avoid accumulating such debt.

We’re here to help you understand the process and find a way forward.

Let’s get started.

Who has to pay council tax?

If you live in a property as a renter or homeowner, the chances are that you have to pay council tax to your authority.

There are several instances, such as exemptions and discounts, that could significantly reduce the amount of council tax you have to pay.

Who is not liable?

Some people are eligible for council tax exemption. Those exempt from paying council tax are:

1. Under 18s
2. 18 and 19-year-olds in full-time education
3. Some apprentices
4. College and university students
5. Under 25s with certain skills funding
6. Some disabled people
7. Live-in carers (non-live-in carers are not exempted)
8. British Council language assistants 
9. Diplomats

When do you have to pay council tax on empty properties?

If you own an empty property, you can apply for a council tax reduction.

It will be up to your local authority to decide whether they will award a council tax empty property discount on your home – but most do offer something.

If you own an empty property for more than two years in England or Wales, the council tax owed can be doubled. 

In Scotland, the council tax can be doubled after one year on an empty property.

If you have inherited a property that remains empty, you will not pay this tax until after probate, and even then, you can get a further six months extension. 

Council Tax Debt Solutions

There are different debt strategies that can help you deal with council tax arrears. Take a look at the table below to learn more about them.

Debt Strategy	How It Can Help With Council Tax Arrears
Flexible Payment Arrangements	Local councils often offer the option to spread council tax payments over 12 months instead of the standard 10.
One-Off Payment	If feasible, pay council tax in full and potentially negotiate a slightly reduced amount.
Hardship Schemes	Council Tax Reduction (CTR) Discretionary Relief Hardship Funds Support for Vulnerable Individuals COVID-19 Specific Support Charitable Grants
Discounts and Exemptions	Check for eligibility for discounts (e.g., single-person discount of 25%) or exemptions (e.g., properties unoccupied due to the resident’s death, properties where everyone’s a full-time student, or a resident has severe mental impairment)
Deferred Payments	Some councils allow deferring payments wherein you’ll pay less now and make up for it later.
Challenge your Council Tax Band	If you believe your property’s council tax band is incorrect, you can challenge it to potentially lower future payments and refund previous overpayments.
Debt Solutions	Certain formal debt solutions like Debt Relief Orders (DRO), Bankruptcy, and Individual Voluntary Arrangements (IVA) can potentially write off council tax arrears,
Professional Debt Advice	UK residents can seek free advice from debt organizations and charities for council tax guidance tailored to their specific financial situation.

How about second homes?

Paying council tax on second homes and holiday homes is different.

If you have a second home that is furnished and used (possibly rented out with people living in it), you can apply for a reduction.

However, there’s no guarantee you will get a discount.

The council tax second home discount you receive on a second home is up to the authority to decide. Some councils require homeowners to pay up to 100% of the council tax on their second homes.

» TAKE ACTION NOW: Fill out the short debt form

How can you get a discount on council tax?

Your local council tax bill is always based on a minimum of two adults sharing the property.

Thus, if you live alone in the property, you can get a 25% reduction as part of the council tax reduction scheme. This is called the council tax single person discount.

If none of the people in the property are recognised paying adults, such as two diplomats, a 50% reduction will be applied.

If everyone in the property is a full-time student (recognised by the Office of Qualifications and Examinations Regulation), no council tax money needs to be paid (100% discount).

This MSE forum poster wants to know if their partner temporarily moving out of their family home would make them automatically eligible for a 25% council tax discount.

As I see it, they’re out of luck.

A council tax single person discount applies if only one adult lives in the property (as the main home). Temporary relocation doesn’t count.

What happens if you lie about council tax?

If you try to get a council tax reduction by lying, such as telling the council that an occupier is in full-time education when they are not, the local authority may prosecute you.

Or they might give you a financial penalty for evasion.

Similarly, you could be prosecuted or fined for not telling the council that your circumstances have changed to keep getting a reduction you are no longer entitled to. 

Always be truthful to avoid these council tax fraud penalties.

Council tax evasion penalties

In most cases, the council will penalise first-time offenders with an evasion penalty. 

If you claimed a reduction wrongfully, the evasion penalty would be 50% of the reduction you received plus 100% of the reduction back (min £100 and max £1,000).

If you didn’t get a reduction wrongfully but still tried to evade council tax in your application, you will be hit with the minimum £100 penalty. 

If you gave incorrect information, but this was judged as careless rather than with an intention to evade the tax, your fine will be £70.

This fine may be wiped if you alert the council of the error first. 

How to get out of council tax debt

Here are some ways to get out of council tax debts:

1. Prevention not cure!

Prevent getting into council tax debts in the first place by agreeing to pay the correct amount for your property and occupants.

Do not make false reduction claims, and make the council aware of any application mistakes first.

From personal experience, you should use various repayment frequency options (weekly, fortnightly, monthly etc.) and payment methods that match your needs. 

2. Repayment Plans

If you do get into debt, you’re not alone.

Be sure to communicate with the council and see if they can offer you a council tax repayment plan to make the debt affordable. 

If you repay the money owed in an affordable plan, you can avoid further financial difficulty.

Contact a charity for support. They might also help you with council tax advice, including how to deal with council tax arrears.

3. Debt Solutions

A repayment plan is not the only debt solution.

There are other ways to get out of council tax debt over time, and some might even help you write off all or some of the money owed. 

See our debt solutions page for information. 

What happens if you don’t pay?

If you don’t cough up, you can be issued with a liability order (council tax liability order), and the council can use enforcement means to recover what you owe, including bailiffs. 

It can get a lot more expensive for you at this point!

As I see it, you don’t want council tax enforcement against you – bailiffs could be sent to intimidate and harass you until you pay. Not worth the trouble.

Can you go to prison for an unpaid council tax bill?

If the council fails to get the tax you owe with various enforcement methods, they can apply to the Magistrates’ Court for a hearing.

If the court finds that you are willfully avoiding or neglecting the debt, they can send you to prison for up to 90 days. 

Council Tax Contact Details

Website:

https://www.gov.uk/browse/housing-local-services/council-tax

References

1. Big Issue – Council tax debt in England