Council Tax Arrears
Council Tax Arrears
Local Authorities will normally ask for your council tax bill to be paid over 10 monthly instalments. If you find that you cannot pay the amount owing, take the following action:
- Look at any possible reduction - see below. Make any claims immediately.
- Keep paying as much as you can afford.
- Contact your local Council and make an arrangement which you can afford. It may help if you use your Personal Budget Sheet to work this out.
- If you are in receipt of Income Support or Income based Job Seekers Allowance, you can ask the Council to make deductions from your benefit.
Can the Bill be Reduced?
Firstly check if you can get a reduction in your bill. The following schemes are available:
Council Tax Benefit
You can apply for this if you are on a low income or on Income Support/Job Seekers Allowance. Request a claim form from your local council office.
Single Persons Discount
You can claim this when there is only one adult living in the home. Request a claim form from your local council office.
Severely Mentally Impaired
A person will be exempt from payment on these grounds if he or she is in receipt of one of the following benefits and is confirmed as being severely mentally impaired by their GP or hospital doctor.
- Incapacity Benefit
- Severe Disablement Allowance or Invalidity Pension
- Attendance Allowance
- Higher or Middle Rate of the care component of Disability Living Allowance
- Income Support where the Applicable amount includes a disability premium
This list is not exhaustive and other benefits may be taken into account. Please contact the council tax department for clarification.
An application form for this scheme can be obtained from your local council tax department.
What Happens if Payments are not Made?
If you fail to keep to a repayment arrangement the next step will be for the council tax section to ask the Magistrates Court to make a Liability Order. This Order states that you owe the Council Tax and haven't yet paid it.
Once an Order has been made and you fail to make regular payments then the Council has various options available to them to collect the arrears owed. These include:
- Deductions from wages or benefit
- Bailiffs taking away goods
The last resort is to ask the Magistrates Court to consider whether you should be sent to prison.
At this Point it is Best to Seek Further Advice
If a Council Tax baliff comes to your property, it is advisable not to let them in. Do not sign anything that you are unsure about or that you do not understand. If you are dealing with a Money Advice Agency ask the baliff to contact your adviser. If not, seek further advice.
From: e-insolvency.co.uk, 8th February 2006