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Original poster

10k backdated unpaid council tax, what do I do?

275 replies

CTfuckup · 15/06/2021 13:27

Been living in staff accom for over 7 years, was never informed I had to pay council tax, moved in at 19, believed it fell under the business address as I didn't have a postal address of my own I.e post doesn't come to my house, private bin collection not council. My rent has come straight out my salary. I've saved hard and I've just bought my first house, contacted council to arrange to pay council tax for house and it's all come about that I owe them £10k. I don't have it, I've just spent every penny of my savings on a house deposit, my monthly outgoings are about to sky rocket as staff accom was cheap and all inclusive and I'm now paying mortgage, CT, bills etc for the first time. What do I do? I have a toddler who is in very expensive nursery. I work all the hours I can. I've cried all day.

OP posts:
Woeismethischristmas · 15/06/2021 14:00

Did they know you were living there before you told them. I’m assuming business was paying commercial rates plus water plus refuse collection. Have they decided because you’ve told them you were resident there you now owe x?

Original poster
CTfuckup · 15/06/2021 14:00

@viques

If you haven’t had a council tax bill or utility bills for nearly eight years how have you given proof of address for things like bank accounts, mortgage applications, nursery applications, phone accounts, credit cards etc etc?
Payslips from my employer, letters from HMRC, bank statements, credit card statements etc. All of these have the address of the business on as like I said I don't have a personal postal address.
OP posts:
FindingMeno · 15/06/2021 14:02

I would be investigating this.
If you were eligible to pay council tax how come you were never pursued in all those years?
Something isn't quite right here.

AdaColeman · 15/06/2021 14:03

Surely the business would have paid council tax on their property?

Are they demanding the whole amount of the council tax for the entire property from you? Or have they assessed a proportion of the entire amount as being your liability?

Were you employed aa a Caretaker?

Egeegogxmv · 15/06/2021 14:03

Someone else has messed up here and they're trying to make you pay for it🤨

HmmmmmmInteresting · 15/06/2021 14:03

Didn't Dominic Cummings recently have this situation and it got written off? Just googled and it was for £50K

QforCucumber · 15/06/2021 14:04

This isn't correct, if the annexe doesn't have it's own address then there is no council tax to pay on it as there is no address for it.

You would not be liable for the business rates on the property as that would cover the business.

MissyB1 · 15/06/2021 14:07

Yeah I’m thinking this is a fuck up from the council tax office and there isn’t actually any debt to pay.

Imaystillbedrunk · 15/06/2021 14:07

Honestly I’d argue this with them. You’re supposed to receive a council tax bill every year, they should l chase you immediately if you late with a payment, take you to court etc. Sounds like a mess up if you were expected to pay and they haven't sent a bill or started court proceedings.

I’m assuming you lived in a boarding school/hotel? Get some advice.

Original poster
CTfuckup · 15/06/2021 14:08

They've paid business rates, the council are trying to backcharge the accommodation as a property in its own rights for the 7 years I've lived there so not included in the business rates. Apparently the person who lived in the accom before me (when it was a different business) paid council tax. Me moving out seemed to bring it councils attention. I have never paid council tax anywhere before this is the first place I lived after leaving my parents house so completely oblivious to the process but neither me or my employer have been chased for it once until I flagged that I'd left the property.

OP posts:
BarbaraofSeville · 15/06/2021 14:10

Don't pay anything without fighting it. You might not be liable and even if you are, a starting point for repayment would be over a good few years as it's certainly not reasonable to expect you to pay faster than you can afford.

What sort of accommodation was it? What facilities did you have?

Where was your postal address for voting, bank account etc?

Did you never think about this before, or did you reasonably believe that the accommodation you were in was either not subject to council tax, or paid for by your employer?

Is anyone else in this position - did you have colleagues who also lived in? Did you have a written employment contract that included your accommodation? What were you paid? There's a limit to what can be taken from your wages for accommodation without breaking NMW legislation.

A few things to look at there.

HasaDigaEebowai · 15/06/2021 14:11

This isn't correct, if the annexe doesn't have it's own address then there is no council tax to pay on it as there is no address for it.

That isn’t true at all!

FindingMeno · 15/06/2021 14:12

OK, so you need proper advice on this.
You have done nothing wrong.
The council surely need to accept responsibility at some level for not issuing a council tax demand to anyone, if nothing else.

Hppymum123 · 15/06/2021 14:12

Was it army housing?

Heyha · 15/06/2021 14:13

I'd definitely recommend CAB, they are great. In the meantime I'd go back to the council and ask them for copies of all the communication they made to try to contact the occupier of the property (ie, you) during those seven years in order to collect the council tax. I bet they won't find any, it will stall things a little while they look and give you time to get proper advice.
You can also use the Shelter website to find our what sort of tenancy you had if it isn't clear from your paperwork- certain agreements have different terms to normal service tenancies, which may help you.

LarsErickssong · 15/06/2021 14:14

@viques

If you haven’t had a council tax bill or utility bills for nearly eight years how have you given proof of address for things like bank accounts, mortgage applications, nursery applications, phone accounts, credit cards etc etc?
This is becoming a big issue as more and more people are living with parents to save a deposit before purchasing their first home. My sister has just been in this position and luckily as there were elections last month the mortgage company have accepted her poll card as proof of ID.
TerribleCustomerCervix · 15/06/2021 14:16

The advice to go to Citizens Advice is spot on.

You could also contact your local MP and see if their staff can look into it for you.

Heyha · 15/06/2021 14:17

@CTfuckup

They've paid business rates, the council are trying to backcharge the accommodation as a property in its own rights for the 7 years I've lived there so not included in the business rates. Apparently the person who lived in the accom before me (when it was a different business) paid council tax. Me moving out seemed to bring it councils attention. I have never paid council tax anywhere before this is the first place I lived after leaving my parents house so completely oblivious to the process but neither me or my employer have been chased for it once until I flagged that I'd left the property.
So in that case they should have been in touch as soon as they stopped getting payments from the previous occupants. If nobody had paid it before I could understand you being missed but if they've had CT from a property then it stops they have cocked up in not trying to make contact during the time you were living there.

As others have said get expert advice as you don't want to get saddled with a bigger problem but I bet this comes down to who blinks first!

altoran · 15/06/2021 14:22

I am assuming the council did not know you were living there and may not have known there was any accommodation on site, hence no council tax bill.
Get advice because although there will be a liability for council tax, the issue is whether you or your employer should pay it. In the meanwhile tell the council that your employer paid all bills for the accommodation and you are seeking advice, as you do not think you are liable for them. It will depend on your contract.

UnChatNoir · 15/06/2021 14:22

@Hppymum123

Was it army housing?
Not sure if the RAF is the same, but if you live in RAF accommodation, a council tax charge is added automatically to your rent, and they take it away from your monthly pay.
Justwingingit2005 · 15/06/2021 14:23

Not sure if this is any help or not but we know someone whose relative who is living in an annexe type thing but same address and utilities are billed to main house but they were told CT needed to be paid on the annexe thing just like TV licence as its behind a closed lockable door.

FindingMeno · 15/06/2021 14:24

If you are in a union, you may find you have a free legal advice line, op.
Do not cough up anything until you have had sound advice.

redastherose · 15/06/2021 14:25

A debt not under a deed cannot be pursued more than 6 years later so the Council should write off the first 1.5 years if you were there for 6 years.

redastherose · 15/06/2021 14:26

Sorry that should say there for more than 6 years at the end.

Motnight · 15/06/2021 14:27

Good luck Op, sounds as though it is not as clear cut as you were led to believe.