What happens if I don't pay my council tax

Have you received a reminder because you have missed at least one Council Tax instalment, or you have not paid your Council Tax in full?

Then you must bring your account up to date. You need to pay the amount shown on your reminder, which includes any amounts due within the next 7 days. The deadline for this to be paid is within 14 days of the date on your reminder.

If you do not bring your account up to date, you may lose the right to pay by instalments. No further reminders will be sent to you and we may apply for a magistrates’ court summons.

If you would like to speak to someone about your arrears or to set up a payment arrangement then please visit Struggling to pay your council tax.

When we sent your council tax bill, we told you how much you had to pay and by when. If you haven’t paid as requested, we will take action to recover the amount outstanding.
 
The magistrate's court will issue a summons if:

• you don't pay anything.
• you have failed to keep your instalments up to date.
• pay some but not the entire bill.

The summons is a legal notice that we are applying for a liability order.

If you receive a summons it will detail a payment arrangement. If want to set up a Direct Debit, or a different payment arrangement please use the Special Payment Arrangement form.

Important:

• The only way to stop the court granting a liability order is to pay the full balance before the court date
• If you choose to pay by arrangement instead, we will still apply for a liability order
• As long as you keep to the arrangement, we will not take further recovery action

If you are unable to pay your council tax, you should contact us immediately. The earlier you contact us, the less likely it is that you will have to pay extra costs. Contact us on 01902 551166.

A liability order is granted by the court and gives the council legal powers to recover unpaid council tax.

This includes instructing:

• your employer to take money direct from your pay.
• the Department for Work and Pensions to take money direct from your benefits or pension credit.
• Instructing enforcement agents to collect the debt. This will cost you more money, you could lose your belongings which are sold to pay your debt (see below for further information on enforcement agents).

We can also consider:

• Bankruptcy proceedings
• Putting a charging order on your property if you own your home and enforce a sale
• Applying to Magistrates' Court for a warrant to send you to prison.

If you are unable to pay your council tax, you should contact us immediately. The earlier you contact us, the less likely it is that you will have to pay extra costs. Contact us on 01902 551166.

If you are employed, we may ask your employer to take money directly from your wages. This is called an Attachment of Earnings Order.

• This can only be set up after a liability order has been granted by the court
• Your employer must deduct a percentage from your net pay (after tax and National Insurance)
• The amount deducted depends on how much you earn
• Your employer may charge a £1 administration fee per deduction
• Payments continue until the debt is cleared

Your employer is legally required to make these deductions once the order has been issued.

You can read more in our guidance notes for taxpayers.

Important:

• An attachment of earnings is only for the debt covered by that liability order 
• It does not pay your current Council Tax charges

If you receive a new bill, you must:

• Pay the amounts shown on that bill yourself
• Continue to pay these instalments in addition to any deductions from your wages

A new Council Tax bill is issued every April for the new financial year. You must pay the new year’s charges to avoid further recovery action.

If you receive certain benefits, we may be able to ask the Department for Work and Pensions (DWP) to take money from your payments.

• This can only be considered after a liability order has been granted by the court
• A fixed amount may be deducted regularly
• Payments are sent directly to the council

We may not always take this action. It will depend on your circumstances and the amount you owe.

Important

• Deductions from benefits are only for the debt covered by the liability order 
• They do not pay your current Council Tax charges

If you receive a new bill, you must:

• Pay the amounts shown on that bill yourself
• Continue to pay these instalments even if deductions are being taken from your benefits

A new Council Tax bill is issued every April for the new financial year. You must pay the new year’s charges to avoid further recovery action.

If payment is not made, the liability order may be passed to accredited enforcement agents to collect the amount you owe, plus any extra charges (see below).

The enforcement agent must:

• carry official identification at all times
• carry written authorisation to act on behalf of the council
• produce the above items if asked to identify themselves
• issue an official receipt for payments.

If you receive a letter or a visit from an enforcement agent, you should contact them urgently to discuss your options for repayment as additional enforcement agents' fees will be added (see below).

If your account is with an enforcement agent, you must make payments directly to them.

The enforcement agents currently used by the Council are:

• Bristow & Sutor - 0871 677 0070
• Rundles - 08456 585030
• Newlyns - 01604 633001

Any enforcement agency acting on our behalf will behave professionally; follow set procedures; have an internal complaints procedure and not take inappropriate action.

Any enforcement agency acting on our behalf will behave professionally; follow set procedures; have an internal complaints procedure and not take inappropriate action.

Stage 1 - Compliance

• This fee is added to your debt when your account is referred to an enforcement agent for collection.
• Charge: £79

Stage 2 - Enforcement

• If you do not arrange to pay the enforcement agent or arrange to make payment and then do not pay as agreed, the enforcement agent will visit you and this fee will also be added to your debt.
• Charge: £247
• An additional 7.5% may be charged on the value of the debt over £1,900 

Stage 3 - Sale

• If you do not sign a Controlled Goods Agreement when an enforcement agent visits your property, or you do not pay as agreed after signing a Controlled Goods Agreement, the enforcement agent can remove and sell your goods and you will be charged this fee.
• Charge: £116 
• An additional 7.5% is charged on the value of the debt over £1,900 

Seizing assets

When an enforcement agent visits, you will have to pay a further fixed fee of £247 plus 7.5% for any debt due that is over £1,900. Even if you pay in full at this stage, you will still have to pay all the costs.

If you are unable to pay in full, the enforcement agent can make the decision to take control of your goods. The enforcement agent may enter into a Controlled Goods Agreement, where the agent makes a list of your possessions that is equal in value to your debt. This means that you cannot dispose or sell them without the enforcement agents' permission. These will then be sold at public auction.

Obstructing an enforcement agent or interfering with controlled goods is now an offence for which you can be arrested and sent to prison.

Bailiffs can take luxury items, for example, a TV or games console.

They can't take items such as:

• goods on hire purchase
• goods which are rented
• items necessary for use in connection with your employment or education - 'tools of the trade' if their value is less than £1350
• household necessities for the family, such as:
  • beds and bedding
  • children's toys
  • children's equipment
  • cooker and cooking utensils
  • food
  • medical equipment
  • table and chairs
  • some lighting or heating appliances
  • refrigerator
  • ironing equipment
  • a vehicle used to carry a disabled person which is displaying a valid disabled person's badge.

Visit GOV.UK for more information about enforcement agent powers and removal of goods.

Depending on your circumstances, we may also consider:

• Charging orders (securing the debt against a property you own)
• Bankruptcy proceedings in more serious cases
• Committal to prison, if the court decides you have refused to pay without good reason