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Council Tax is the tax you have to pay on your home and is a priority debt. The amount you pay depends on the value of your home dependant on the band your home is in.
Non payment of Council Tax can have serious consequences. Your Council Tax should be dealt with immediately to prevent the severe consequences.
There are several possibilities for paying your Council Tax bill:
- Pay the whole amount in one lump sum by cheque at your local council offices.
- Pay your bill by direct debit over ten months, or by Girobank Transfer.
- Pay your bill monthly or at shorter intervals over the counter at your local council offices in cash with a payment card.
- Pay your bill with a swipe card at your local council offices.
What to Do If You Are Struggling
If you are struggling with your council tax repayment you should contact your local council and offer to make reduced payments. These reduced payments should comprise of your normal payment and some towards the arrears.
You should qualify for a discount of 25% from the local authority if you are the only adult living in your property.
You will qualify for Council Tax Benefit to pay all or part of the bill if you or your family only has a low total income. It is important to claim this as soon as possible as backdating is generally not allowed.
Also, check whether you can get discounted Council Tax. You may be able to if you are:
- On a low income
- Are the only adult in the house
- Living with students
- Living with adults who are severely mentally disabled
What Action Can the Council Take
If you have made arrangements to make payments on your council tax arrears and then fail to keep up with the arrangement, your council can use the law to demand the full amount you owe, plus any costs. In this case, you will receive a Liability Order and have to go to a court hearing and explain your situation.
If you are ordered to make payments you can’t afford, you should continue paying what you can and apply to the court for a reduction.
Worst case scenario
If you ignore the liability order, your council can take action by:
- Ordering your employer to deduct a regular amount from your wages for your Council Tax
- Sending bailiffs to your home to take your valuables for resale
- Applying to make you bankrupt
- Evicting you from your property if you are a council tenant
- Taking you to court which may result in a custodial sentence
If you do not have sufficient funds to make a repayment offer you will need further advice.
For immediate expert advice on helping with council tax arrears contact a Debt Plan Direct adviser who will help you work out a repayment schedule.
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