What happens if I don’t pay my Council Tax?

11 April 2008

Council Tax pays for local services, from policing to refuse collection. It’s a priority bill, which means paying it is even more important than paying your non-priority bills (such as credit cards or unsecured loans), as the consequences can be much more severe. If you don’t pay your Council Tax:

• You might be visited by bailiffs
• Money could be taken straight out of your wages / benefits
• The court might grant a Charging Order, which turns your debt into a secured debt (secured against your property)
• If the worst comes to the worst, the council might begin bankruptcy proceedings – or even try to have you imprisoned.

But your council won’t just take you to court as soon as you miss one Council Tax payment. They’ll start by sending you a reminder, and if you can pay then, no further action will be taken. If you don’t pay, they may ask the magistrates’ court to grant a liability order. Once a liability order has been granted, the council will be able to pursue ‘enforcement actions’.

Talk to the council
If you’re having problems paying your Council Tax, you should never suffer in silence. It’s very important that the council understands you’re unable (not unwilling) to pay your Council Tax bill.

So the first thing to do is contact the council, tell them about your financial situation and explain how you intend to pay off your Council Tax arrears. Drawing up a budget that shows your income and expenditure will help you calculate how much you can afford and (if necessary) prove that you’re paying your arrears as fast as you can.

Plus, if you contact the council you may find that you’re eligible for a Council Tax discount you didn’t know about. You might get a discount if there’s a disabled person living in your home, if there’s only one adult living in the property, or if you’re on a low income. These are just three examples – to find out more, contact your council. You may even be able to backdate a Council Tax discount.

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