In partnership with the Insolvency Network

Council tax in arrears

Council tax is the only debt in the UK that you can go to jail for not paying (but only if non-payment is wilful refusal or grose neglect), the maximum term is three months. Because of the implications of not paying council tax letting this debt mount up is really not a good idea.

If you miss council tax payments you can lose option to make monthly payments and your council could insist that you pay off the balance for the year in full.

If you have been reading the other pages on types of debt you will probably already know that we would strongly advise anyone who is having difficulty paying to contact their lenders or in this case the local council. As with all types of debt if you owe money on your council tax there are special arrangements for people who are having difficulty paying but you cannot come to these arrangements if your council do not know that you are having trouble.

If you agree to make smaller payments its really important that you are realistic with what you offer to pay as if you are given the opportunity to make reduced payments you must not miss them. If you cannot come to an arrangement or if you do and miss them falling back into arrears then the council can take out a Liability Order, this is a demand from the courts that you pay the full amount plus any expenses that have been incurred trying to collect them.

If you ignore a liability order the council are likely to take action against you, this could take one of a number of forms:

Your council may instruct your employer to deduct regular payments from your wage to pay owed tax.
Your council could arrange to have your benefits reduced to reclaim unpaid tax.
As a more extreme measure bailiffs could be sent to your property to seize property to sell, although they cannot turn up unannounced this can be a very unpleasant experience. If you receive a letter stating that bailiffs are going to pay you a visit you should contact your council and the bailiffs to try to come to an arrangement immediately.
Ultimately if your council tax is not collected your council could apply for a warrant committing you to prison, this would be done though the Magistrates Court. This is an absolute last resort and will only be taken if all other methods have failed.

If you are in trouble with you council tax or think you might be in the future and need any advise then please give us a call, request a callback or send us an email below, we are here to help and will offer you impartial advice.

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