MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.
Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.
Could you legally write off some debt? Answer below to get started.
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
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For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
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.
Could you legally write off some debt?
There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out.
Answer below to get started.
This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.
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 for council tax?
Some people are eligible for council tax exemption. Those exempt from paying council tax are:
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.
Do you pay council tax on 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.
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.
Thousands have already tackled their debt
Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.
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I’d recommend this firm to anyone struggling with debt – my mind has been put to rest, all is getting sorted.
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.
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.
The council tax band of each house was decided in 1991, which means there are many inaccuracies. You can challenge yours!
Who gets a council tax reduction?
Some people can get a reduction, including sole occupiers, diplomats and some disabled people.
Does a student house pay?
No, students in full-time education are not subject to this tax.
What happens if I wrongfully claim a reduction?
You can be fined 50% of your wrongful claim and all of the money back up to a maximum for £1,000.
Do you pay on an empty property?
You can apply for a reduction on an empty property. If the property is unoccupied due to death, nothing will need to be paid until after probate and can be extended for a further six months.
Is there a legal way to avoid my council tax?
You can legally avoid paying with a genuine reduction claim or being one of the people not subject to this tax only.
Can bailiffs force their way into my house?
In most cases, no. But they can come through unlocked and ajar doors.
What is a liability order?
An order making you liable for the council tax debt made by a court.
When is council tax written off?
The debt may be wiped after six years in England or Wales or 20 years in Scotland.
What is an attachment of earnings order?
A way that the council can recover the payment through your wages.
Can I go to jail for unpaid council tax?
It is possible to be sent to jail for 90 days.
Can a debt management company help?
Possibly, but so can debt charities.
Could you legally write off some debt?
Answer below to get started.
This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.
We're glad you liked the article! As a small team, your support means everything to us. If you could rate us on Google, it would be amazing. Thank you!
MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.
Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.
Could you legally write off some debt? Answer below to get started.
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
