Never Paid Council Tax - Consequences If You Don't Pay!

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Facing council tax debt can be a worry, but luckily; you’ve come to the right place for answers. Each month, more than 170,000 people visit our website for guidance on debt solutions.

In this article, we will explain in simple words:

Steps to take if you find it hard to pay your council tax.
What council tax bands mean.
How to ask the council to clear some of your council tax debt.
How not paying council tax may change your credit score.
The legal problems that can happen if you don’t pay your council tax.

StepChange reports that over half of their clients contacted by bailiffs were struggling with council tax arrears, and many of them expressed feeling unfairly treated.¹

We know this can be concerning, but we are here to guide you through all you need to know about council tax and debt.

Let’s dive right in and discuss your options.

If You Don’t Pay Your Council Tax, What Will Happen?

If you are in arrears with your council tax, and you ignore the requests from the local authority to pay the balance for the year, the council can approach the court to have a liability order issued.

When this happens, you may have legal costs added to your council tax bill as well. Also, the court can apply an attachment of earnings order and start collecting the debt from your pay.

If you are receiving some forms of benefits, these can also have council tax debt deductions taken from them.

These benefits include:

Universal Credit
Pension Credit
Jobseeker’s Allowance
Income Support.
Employment and Support Allowance

In some cases, such deductions may leave you with less money than you need to live. In such instances, you can ask the council if they would be willing to take less in deductions each month.

In many cases they will be happy to reach a compromise, but not always.

If you refuse to pay your council tax, you could be given a three-month prison sentence.

Council Tax Debt Solutions

Dealing with council tax arrears can be concerning and scary. But don’t worry, there are different debt strategies that can help you. These are:

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 a debt solution could help

Some debt solutions can:

Stop nasty calls from creditors
Freeze interest and charges
Reduce your monthly payments

A few debt solutions can even result in writing off some of your debt.

Here’s an example:

Situation

Monthly income	£2,504
Monthly expenses	£2,345
Total debt	£32,049

Monthly debt repayments

Before	£587
After	£158

£429 reduction in monthly payments

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Who Has To Pay Council Tax?

In general, your council tax bill is calculated based on at least two adults residing in the premises. Married couples or partners are jointly responsible to pay the council tax.

Some people are not counted towards the headcount for council tax, as shown below.

Children under the age of 18.
A person on an applicable apprenticeship.
Young people (18 to 19) who are in full-time education.
Somebody attending college or university full-time.
Anyone under the age of 25 who is getting Education and Skills Funding Agency funding.
Anyone studying to be a nurse.
People with severe mental illness.
A carer who lives in.
A registered diplomat.

The amount of council tax you have to pay, depends on the council tax band that is derived from the value of your home.

The table below shows what these bands are.

Property Value	Council Tax Band
Up to £40,000	A
Over £40,000 and up to £52,000	B
Over £52,000 and up to £68,000	C
Over £68,000 and up to £88,000	D
Over £88,000 and up to £120,000	E
Over £120,000 and up to £160,000	F
Over £160,000 and up to £320,000	G
Over £320,000	H

If you think that there has been an error, you might be able to challenge your tax band.

You can challenge your council tax band online but you will need to have supporting evidence that proves there has been a mistake.

What if You Miss a Council Tax Payment?

If you are late paying your council tax, before you go into arrears, your local authority will send you a reminder, and ask you to make payment within 7 days.

As long as you make payment within 7 days everything will be fine. However, the council will only allow you to do this twice a year.

If you don’t pay your council tax within 7 days, or you are late paying for a third time in a year, then the council will take away your ability to pay in instalments, and want you to pay the remainder for the year in one lump sum.

What if You Cannot Afford To Pay Your Council Tax?

If you cannot afford your yearly council tax, you can apply to the council for a one-off discount. They may or may not grant this.

In some cases, you may be eligible for a reduction in council tax. For example, if you are a low-income family or you are on benefits.

If you live alone, you should be able to have your council tax reduced if it has been calculated on more than one occupant. Additionally, you may be able to get help paying your council tax in the form of Council Tax Benefit.

Thousands have already tackled their debt

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How do I appeal my council tax bill?

If you think that your council tax bill is wrong, you need to write to your council and tell them why you think that your bill is incorrect. You can find out who your local council is here.

Your council will then reply to you within 2 months.

This reply will either:

Tell you you are correct, your bill is wrong, and a new bill will be sent.
Tell you that the bill is right and explain why.

If the council replies and says that your bill is wrong, you must carry on paying the amount on your old bill until a new one comes.

If you wish to appeal your council’s decision, or you don’t get a reply within 2 months, you can appeal to the Valuation Tribunal. This is a free services but you need to pay for your own costs.

For your appeal to be valid, you need to:

2 months of the council telling you their decision
4 months after you first wrote to the council about your council tax bill.

If the Valuation Tribunal agrees with you and says that the council was wrong, your new bill will be sent along with your monthly adjustments.

» TAKE ACTION NOW: Fill out the short debt form

Will Council Tax Arrears Affect My Credit Score?

Yes, council tax arrears can affect your credit score because it can lead to legal action.

This is because companies use your credit file to see if you are a ‘high-risk’ customer – someone who might have difficulty paying their bills on time. If you have a CCJ for any debt, including council tax, you have had such trouble paying back your debt that someone had to go to court about it.

If you have an earnings arrestment as well, you:

Haven’t paid off your debts according to your original credit agreement
Got taken to court over your lack of repayment
Got a CCJ against you
Didn’t pay according to the terms of the CCJ
Forced your creditor to go back to court for an earnings arrestment.

Understandably, companies are going to be reluctant to give you credit!

After 6 years, it is no longer visible on your credit report, and you should find it easier to get credit again.

In some cases, the court may sanction bailiffs to visit your home and collect the debt.

If you can’t or won’t pay, the bailiffs will take goods from your home, to be sold off against the debt. Although the bailiff may allow you to pay them in instalments, but this is not guaranteed and you should not rely on this option being available.

As you can clearly see, it really does not pay to ignore your council tax arrears.

You will have to pay them some way, either voluntarily, or through a court order that enables the council to tax money from most forms of income you may have.

The best advice here is to speak to the local authority and try and arrange an affordable repayment schedule before things go too far and the court gets involved.