Can council tax arrears lead to a CCJ? Liability orders explained

Council-tax liability orders differ from County Court judgments. Understand credit-file effects, enforcement and how to challenge a disputed bill.

What is a county court judgement?

A County Court judgment (CCJ) is a civil court decision that money is owed. It can affect a credit record, normally for six years unless paid in full within one month and removed. It is not the usual court order used to collect council-tax arrears in England and Wales.

Council-tax liability orders are made by the magistrates’ court under a separate process. The rest of this guide concerns that process, not a County Court claim or its application forms.

Can you get one for council tax?

If you receive a summons to attend a Magistrates’ Court about your council tax debt, the court action does not lead to a CCJ. But it can lead to a liability order being issued.

There is a difference between the two. In short, you won’t get a CCJ for not paying council tax.

What is a liability order?

A liability order confirms that council tax is payable and gives the council further recovery powers. Recoverable legal costs can be added; there is no universal £20 total.

Options can include statutory deductions from employed earnings, an application for deductions from certain benefits, or enforcement agents. Wage and benefit deductions are separate procedures. Charging orders and bankruptcy require their own legal conditions and court processes; creditor bankruptcy generally requires at least £5,000 of qualifying debt.

Does it expire?

In England and Wales, the council generally has six years from the date a council-tax sum became due to apply for a liability order. This is not a six-year period restarted by your last payment. Once a liability order has been obtained in time, its enforcement is not automatically barred when the original bill reaches six years old. Ask the council for the order date and a breakdown, and get advice about the particular enforcement action. Scotland has a different recovery system.

Can I ignore it?

Do not ignore a liability order or related notices. Ask the council for a breakdown if the balance is disputed, and seek free debt advice if you cannot pay. Continued non-payment can lead to further lawful recovery and costs. Specific penalties or imprisonment require separate legal conditions; they do not follow automatically from ignoring an order.

Dealing with arrears

Dealing with court proceedings, a charging order, enforcement agents, bankruptcy or an attachment of earnings is not fun and can be expensive.

As soon as you receive a notice at your address asking for payment, it’s time to take action. Either make the payment in full or pick up the phone and call your authority to explain why you are unable to make a payment at this time. The council is likely to agree on a payment plan to help you repay what you owe affordably over time.

Search online for the phone number of the correct department at your local authority. 

If you have already received a summons, also contact the council to see what can be agreed upon. As soon as the liability order is issued, the debt becomes more problematic and costs you more.

And don’t forget to get advice from a charity. They can even help you budget so you know what amount of repayment instalments you can accept. 

How to get deductions

Check Council Tax Reduction for low income and the available discounts or exemptions for your household. A 25% single-person discount normally applies where only one counted adult lives in the home. Some residents, including qualifying full-time students, are disregarded; there is no general restriction to students in their teens.

Ask the council to assess your circumstances and any discretionary hardship assistance. A benefit award does not automatically settle every council-tax bill.

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How do I challenge it?

Start by identifying the dispute: the bill, liable person, discount, band or the procedure for making the liability order. The correct route and deadlines depend on that issue. There is no general 14-day County Court attachment-of-earnings appeal for a council-tax liability order.

Contact the council immediately with evidence, ask for its decision in writing, and obtain advice about any Valuation Tribunal appeal or court remedy that applies. Do not assume a complaint suspends payment or enforcement. If a hearing is listed, follow the summons and seek advice before the date. See the government appeal guide.

Can bailiffs force entry?

Bailiffs cannot break in to collect council tax debts unless you have broken a Controlled Goods Agreement (CGA) and the goods secured against the debt are inside your property. Even then, they must meet other criteria to force entry, and they cannot harm you or search your person. 

Can They Take Everything?

There are strict rules on what bailiffs can’t remove from your property, even if they are collecting for priority debts like council tax. These items include:

• Anything that belongs to someone else – this includes things that belong to your children
• Pets or service animals
• Vehicles, tools, or equipment that you need for your job or to study up to £1,350
• A mobility vehicle or any vehicle with a valid Blue Badge
• Anything permanently fitted to your home – kitchen units, etc.

Bailiffs also can’t take things that you need to live. These items can be anything that you use for your ‘basic domestic needs.’ They can take some of these things, but must leave you with:

• A table with enough chairs for everyone in your home
• Beds and bedding for everyone in your home
• A phone or mobile phone
• Any medicine or medical equipment that you need to care for someone
• A washing machine
• A cooker or microwave, and a fridge.

If you think that a bailiff has taken something that they shouldn’t, you need to complain immediately.

You can also contact a debt charity for some advice. I have listed several charities that offer free advice at the bottom of this page.

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What if I am a vulnerable person?

Tell the council and enforcement agent about any disability, serious illness, mental-health difficulty, bereavement, pregnancy or other circumstance affecting your ability to deal with enforcement. Explain the impact and any support or reasonable adjustment needed; a carer or adviser can help.

Vulnerability must be considered in the circumstances. It does not automatically cancel the debt or guarantee an indefinite pause. Ask for time to obtain advice, an appropriate contact method and confirmation of any agreed hold. Keep records and seek help promptly if the proposed visit could put you at risk.

Can you go to prison for arrears?

In England, imprisonment for council-tax non-payment is a last-resort procedure. The magistrates must investigate your means and find wilful refusal or culpable neglect; inability to afford the bill alone is not enough. The maximum is three months. Wales has abolished imprisonment for council-tax non-payment. Scotland uses a different enforcement system.

A later committal or means-enquiry summons requires urgent legal advice. Follow the court’s attendance instructions; failure to attend when required can result in an arrest warrant. If payment is made before the hearing, get confirmation about whether attendance is still needed.

How long can you be chased for the debt?

In England and Wales, the council generally has six years from the date a council-tax sum became due to apply for a liability order. This is not a six-year period restarted by your last payment. Once a liability order has been obtained in time, its enforcement is not automatically barred when the original bill reaches six years old. Ask the council for the order date and a breakdown, and get advice about the particular enforcement action. Scotland has a different recovery system.

See regulation 34 for the liability-order application limit. Get advice about the actual order and recovery action before relying on limitation.

Does it affect credit rating?

Local authorities will not send information about your council tax arrears to any of the credit rating agencies. This means your council tax debt will not affect your credit score. 

This isn’t an excuse not to pay your council tax bill. 

References

1. Big Issue – Council tax debt is spiralling across England as households struggle with cost of living crisis