Council Tax

[gingerbiscuit19]

I've been really stupid and have ended up with £700 owing on this years council tax Bill. I've only realised when I've had the new council tax Bill through and there's a small note to say what the outstanding balance for this year is.

I'm absolutely terrified, I haven't got the money to pay it and I'm really worried it'll end up been deducted out of my wages which would be highly embarrassing because of where I work.

Before I ring them - does anyone know how they deal with this? Is it the fact that the outstanding balance is due by the end of the month and if I can't pay it goes straight to court? Or do they take repayment plan offers?

I've never received a letter to tell me I was underpaying so it's come as a shock.

Were you claiming a discount which has now lapsed? They might add it to next year's payment but normally a default is due immediately. Can you offer whatever you can now?

No I haven't been claiming any discounts. I think I've just been underpaying on my monthly instalments and they've never contacted me to tell me it was incorrect.

I'm planning to ring and offer them what I can now and see where it gets me, I was just wondering what the chances were so I can prepare myself.

Check this page from citizen's advice: www.citizensadvice.org.uk/debt-and-money/help-with-debt/dealing-with-urgent-debts/dealing-with-council-tax-arrears/ You can arrange payment plans but you need to sort ASAP as you don't just risk money being taken from you but you can go to prison for not paying council.

First things first is to ring them and check if this is genuine (take the phone number of their website not the letter itself) and if so what has caused the arrears? Were you paying by DD or just one off payments and you forgot.

Do ring them.
My local team are really good with people paying a little at a time, as long as they know that's what's happening. Its when people don't contact them and pay they come down hard.
I'm sure they'll help.

Thank you for your help - I don't have a direct debit set up so it's possible I've missed a couple of payments somewhere along the way. I know I've been really daft.

How did you get on with the council?

Mine allowed us to set up a dd split over the months and added on, I also pay mine over 12 months instead of 10 as find that easier to manage , they don't tell you that you can do that at my council unless you ask

Hello, I rang the council this afternoon but unfortunately they weren't much help. She advised to pay as much as I can before the end of the month and said she couldn't guarantee I'd be allowed to pay in instalments but it would be reviewed in April.

I had a similar situation OP. I owe £207 on this years and i said due to various reasons i’m really going to struggle to pay.
The chap I spoke to said pay whatever i can before end of month and then ask if the remaining balance can be merged into next years, did they not give you that option?

Thanks Linda, the lady I spoke to was very cagey. She didn't mention instalments for next year, just said to call back once I'd paid what I could. Maybe to deter me paying the minimum this month? I'm unsure. Fingers crossed!

I'd highly reccomend setting up a dd for the future installments to prevent this happening again

Have you checked that this is not a scam ?

Have you phoned or emailed your council directly ?

Most people pay their council tax monthly

Ask your council to send you a letter of how much the council tax should be per month

Check your monthly payments for this year it may have been merged. When I accidentally overpay it usually just gets taken off next year's bill so I assumed they would do the same with monies owed.

How can you miss a couple of payments and owe £700?
I think you need to pay as much as you can this month and hope they can put the outstanding on next years bill, if you owe too much they may not look it. set up a DD do it’s all done
Speaking as somebody who has been in debt please be more organised with your payments

I used to work in council tax many many years ago. I find it mad that you are offering money and they are not taking it. Completely crazy.

As we are at year end the 2020/2021 year pay what you can bearing in mind you will be starting 2021/2022 year from 1st April.

What should happen is that you agree and stick to (that is the important bit) any payment arrangement you make. They will likely want it in alongside this year's. So £70pm toward last year and whatever your payments are for this year.

Because you have been making payments I think there is a slight loophole in the system. What would happen usually (it probably hasn't changed) was you fail to make your monthly payment you get a reminder, you fail again at any point over that year you go straight to final reminder for the whole year to be paid, the person would usually ring, agree to monthly payments and pay.

If they didn't pay then they apply for a liability order from the magistrates court,(not a CCJ, nothing on your credit file) this is to prove that you are the person liable for council tax and it grants the council more powers to collect the money ie attachment of earnings or bailiffs.

Attachment of earnings is brutal and the rates are fixed. If you earn a monthly net salary of between £740 - £900 they take 7% and if you earn £900 - £1420 and they take 12%. It increases to 17% and 50% for figures higher than that.

You need to prioritise this any way you can, council tax is a local tax and they have far reaching powers to collect it in.

As a department we made every effort to help people when it got out of hand, we were kind and understanding. We had it day in, day out. You are not alone, this happens to lots of people. Just be prepared with payment plan offer.