How Long Can You Be Chased for a Council Tax Debt?

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Dealing with debt in the UK can feel like a big worry. Luckily, you’re in the right place. Each month, more than 170,000 people visit our website for advice regarding their debt issues.

This article will help you understand:

What happens if you can’t pay your council tax.
What council tax bands mean for you.
How to ask the council to forgive your council tax debt.
How not paying council tax may affect your credit score.

While it may seem like you’re alone in this struggle, it’s worth mentioning that the average council tax debt among those seeking support from Citizens Advice has remained stable at £1,100 over the last year.¹

We’re here to help you find the best way for you to deal with unpaid council tax from years ago. It’s never too late to start solving your money problems.

How Long Can You Be Chased for a Council Tax Debt?

Your council tax arrears will be statute-barred after six years, but it’s highly unlikely that your council will let that happen.

They will keep contacting you when you have council tax arrears and you refuse to acknowledge your debts.

When you don’t make payments towards the arrears, your local council will most likely take legal action against you.

If your local council does not contact you regarding your debts for over six years, you can dispute their claims. But as I mentioned, this is highly unlikely to happen.

Plus, the council tax dispute process is challenging, so I suggest you seek advice from a debt adviser first.

Is council tax arrears a CCJ?

No. You’ll get a liability order for non-payment of your council tax but not a CCJ. Plus, it won’t affect your credit score.

Council tax debt collectors

If you have never paid your council tax debt, you may have to deal with a debt collection agency not the council. Dealing with debt collection agencies in the UK is not a pleasant experience.

So, it’s important to know your rights and what a debt collector can and cannot do and the sort of council tax enforcement actions to expect.

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What happens when I refuse to pay Council tax arrears?

If your local council demands payment and you refuse, the authority has many powers to recover what you owe.

This is why council tax arrears should always be treated as a priority debt. In short, you should always take care of the arrears first before attending to other non-priority debts such as credit cards.

The importance of priority debts can’t be stressed enough.

Not only can the council send bailiffs (enforcement agents) come to your home to seize your goods, but they can also apply to a magistrate’s court and get a ‘liability order’.

If you’re facing a liability order, I suggest seeking out debt solutions that will fit your needs by filling out our debt form.

Debt advice services UK are invaluable when you’re not sure what to do.

Plus, a debt adviser will tell you about your rights if you feel you’re being treated unfairly. They can also advise you on the council tax debt recovery process and how to deal with it.

» TAKE ACTION NOW: Fill out the short debt form

What is a Statute-Barred Debt?

A statute-barred debt means it cannot be enforced through the courts anymore.

What this essentially means is that your creditors cannot pursue you regarding the debt. While the debt still technically exists, you won’t have to pay it.

Statute barred debts are covered by the Limitations Act 1980 in England and Wales.

In Scotland it’s the Prescription and Limitation (Scotland) Act 1973. And in Northern Ireland, it’s the the Limitation (Northern Ireland) Order 1989.

This limitation period is six years for most types of debt, but it’s twelve years for some other types of debt such as mortgages.

How do I know if a debt is statute barred?

Please note that there are strict conditions for the limitation period to be valid.

These are:

You do not have a County Court Judgment (CCJ) against you concerning a debt (not applicable with council tax debt).
You have not made an acknowledgement of the debt in six years.
You have not made any type of payment towards the debt in six years.

If all these conditions are met, then your debt will effectively become unenforceable.

This is why I suggest that you cooperate with your creditors whenever they contact you so that the matter does not escalate to court action.

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I’ve got unpaid council tax from years ago, what should I do?

Sometimes you might not even realise that you’ve got council tax arrears until a letter lands through your door asking you to pay your council tax bill.

This might happen due to a direct debit not going through, or perhaps you couldn’t afford to pay your council tax bill.

Either way, if you miss council tax payments, your local authority will be in touch to collect the council tax debt you owe.

Check out this online message posted on a popular forum

Source: Moneysavingexpert

Council Tax Debt Solutions

If you’re struggling with council tax arrears, it’s crucial to understand your options. Take a look at these debt strategies that can help you.

Debt Strategy	How It Can Help With Council Tax Arrears
Flexible Payment Arrangements	Local councils often offer the option to spread council tax payments over 12 months instead of the standard 10.
One-Off Payment	If feasible, pay council tax in full and potentially negotiate a slightly reduced amount.
Hardship Schemes	Council Tax Reduction (CTR) Discretionary Relief Hardship Funds Support for Vulnerable Individuals COVID-19 Specific Support Charitable Grants
Discounts and Exemptions	Check for eligibility for discounts (e.g., single-person discount of 25%) or exemptions (e.g., properties unoccupied due to the resident’s death, properties where everyone’s a full-time student, or a resident has severe mental impairment)
Deferred Payments	Some councils allow deferring payments wherein you’ll pay less now and make up for it later.
Challenge your Council Tax Band	If you believe your property’s council tax band is incorrect, you can challenge it to potentially lower future payments and refund previous overpayments.
Debt Solutions	Certain formal debt solutions like Debt Relief Orders (DRO), Bankruptcy, and Individual Voluntary Arrangements (IVA) can potentially write off council tax arrears,
Professional Debt Advice	UK residents can seek free advice from debt organizations and charities for council tax guidance tailored to their specific financial situation.

What are the consequences of not paying council tax?

If you owe money to the council, they’ll want payment within the current tax year. As such, you could end up with a bailiff visit and they could seize some of your possessions.

Not only this, the council could take a fixed percentage from your wages which is known as an ‘attachment of earnings’.

The council tax penalties in the UK for non-payment are severe.

Can I be Sent to Prison for Not Paying the Money I Owe to My Local Council?

If you’ve been refusing to pay your council tax, they will eventually send you a letter that will be a final notice for the payment.

You will then have 7 days to make arrangements to pay them.

If you don’t, they will pursue court action against you. The court will then decide whether you can afford to pay your local council or not.

If it’s decided by the court that you can afford to pay your local council, then a payment plan will be set up that you will have to adhere to.

If you refuse to stick to this payment plan and the court decides that you’re deliberately refusing to make the payments even though you can afford to, you may be sent to prison.

You can be sent to prison for up to 3 months for refusing to pay council tax even though you have the means to do so.

Please note that you cannot be sent to prison in Scotland, Wales or Northern Ireland but the power to imprison still exists in England.

However, refusing to pay council tax when you have the means to do so, carries serious consequences regardless of where you are in the UK.

What is local council tax support scheme?

The Council Tax Support scheme was set in place to help people on low incomes. The scheme reduces their council tax bills.

You can apply for it whether you are working or not, and homeowners are also eligible.

You must be liable for council tax to qualify.

A council also has the power to reduce a council tax bill or a previous debt whether in part or in full.

It’s known as a Discretionary Reduction and can be set in place for people liable for council tax but experiencing serious financial hardship.

If you’re struggling with debt, I suggest you find out about what council tax exemptions and reduction you could be entitled to.

FAQs

How long before council tax debt is written off?

Council tax debt will likely never be written off naturally as a CCJ against you means there is no set time where the debt drops off your credit file. Insolvency solutions can write off debt…

Can bailiffs force entry for council tax debt?

No. Bailiffs cannot force entry for council tax debts. They are only permitted to force entry for income tax debts or magistrate court fines.

Can I get help with council tax debt?

Yes. You should contact your council or a debt charity such as citizens advice or stepchange straight away to get help with council tax debt.

How do I get a council tax reduction?

Those with low income or on benefits will often receive a council tax reduction. You may also get a reduction in your council tax if you’re a single adult living alone. There is a 25% reduction in your council tax if you are the only adult living in your home. Some people are not counted when determining how many people live in a home; they are referred to as “disregarded people.” If none of the occupants are counted, there will still be a council tax bill, but it will be discounted by 50%. No council tax will be required of you if all of your household members are either students or severely mentally impaired. Inform the council if you are eligible for a discount because someone has moved out. You are entitled to the discount from the date the person moved out, regardless of when you informed the council.

References

Big Issue – Council tax debt in England