Penalty for Not Paying Council Tax – Best And Worst Case

Struggling to pay your council tax can be a worry. You may be scared about what happens if you don’t pay, but don’t fret; you’re in the right place for answers.

Each month, more than 170,000 people visit our website seeking advice on their debt problems, so you’re not alone.

This article will explain in a simple way:

• What to do when you can’t pay your council tax.
• How council tax bands work.
• How to ask the council to write off your council tax debt.
• What not paying your council tax means for your credit score.
• What the law says about not paying council tax.

We understand how hard it can be when you can’t pay your bills. This guide is here to help you understand your options and rights and what you can do to improve your current situation.

Let’s get started.

What are the consequences of not paying council tax?

There are no consequences for missing a single council tax payment if you catch up within seven days of a reminder. However, failing to catch up could lead to:

1. Having to pay all your council tax owed for the remainder of the year
2. Being subject to a liability order and paying a court fee
3. Having to deal with (expensive) bailiffs or having money taken from your income

Can you go to jail for unpaid council tax?

It’s possible to be sent to prison for not paying your council tax, but this is rare. 

Prison sentences for unpaid council tax are reserved for cases when people have the means to pay but deliberately don’t pay. 

You’re highly unlikely to be sent to prison for failing to pay council tax when you have financial problems. 

What happens if you miss one council tax payment?

If you miss one council tax payment the local authority will send you a notice asking you to pay your council tax arrears within seven days. 

This notice will arrive around two weeks after the missed payment, but it could be advantageous to contact the council yourself and explain your situation. 

Do you get fined for paying council tax late?

You won’t be fined for missing one council tax payment if you pay within the seven-day deadline given.

However, if you miss the deadline to catch up on your payment, or if this is the third time you’ve been late to pay in one tax year, the council will send you a final notice. 

The final notice requests you to pay all the council tax due for the rest of the financial year, which can be significant. 

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Council tax recovery process

The council debt recovery policy is the same across local authorities. You can understand the full council tax recovery stages below. 

1. Council tax reminder

If you miss a payment, the council will send you a reminder to pay. The reminder will be a letter and should arrive within two weeks of the missed payment date. It will tell you to catch up within seven days.

2. Final notice

If you don’t pay the missed payment within seven days, the council will send you a final notice letter. You’ll be sent a final notice without a reminder letter if the missed payment was your third this tax year. 

The final notice will ask you to pay all of the remaining council tax for the rest of the tax year. You will be asked to pay this within seven days. 

3. Liability order

If you don’t pay all of your council tax for the rest of the year within seven days, the council will apply to the court for a liability order. There is a court fee to do this which you’ll be obligated to pay. The liability order gives the council authority to enforce debt collection.

4. Enforcing debt collection

Once a liability order has been issued, the council can force you to pay by:

1. Getting money taken from your income
2. Using enforcement officers, also known as bailiffs

» TAKE ACTION NOW: Fill out the short debt form

Can bailiffs come for not paying council tax?

Yes, with a liability order the council can employ bailiffs to come to your home and collect full payment. 

Alternatively, the bailiffs might try to seize control of your goods with the intention of selling them at an auction to raise money. The funds would then be used to pay your debt to the council.

Bailiffs charge expensive fees for their service and these are passed on to you, which can significantly increase your debt. 

If you are facing a bailiff visit, keep in mind that they can’t force entry. This means that they can’t enter your property unless you give them permission or you leave your doors open.

Can you have money taken from your income?

Yes, the council could have money taken from your income to clear the council tax arrears after gaining a liability order from the court. 

The court can request that money is taken from your employment income or from benefit payments, including Universal Credit and Pension Credit. 

Can council tax debt be written off?

Yes, council tax debts can be written off by a court if it decides this is the best course of action, although this is rare. 

These debts can also be legally unenforceable – which is almost the same as having it written off – if the council hasn’t taken legal action to recover the debt after so many years.

In England and Wales, council tax debts are automatically unenforceable after six years. Whereas in Scotland the time period for the council tax debt to be unenforceable is 20 years. 

It’s quite rare for a local authority to sit idle on one of these debts for so long, so these debts don’t often get to the stage of becoming unenforceable. However, it’s not completely unheard of, as this forum post evidences:

Source: https://forums.moneysavingexpert.com/discussion/2814988/council-tax-arrears