Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

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:
MzHz · 15/06/2021 15:40

[quote TollgateDebs]Here's the guidance - www.gov.uk/expenses-and-benefits-accommodation/whats-exempt[/quote]
That’s about income tax, not council tax

CT is paid to local authorities not to HMRC

Londonlady33 · 15/06/2021 15:41

I live in employer provided accommodation and the employer pays all bills except council tax. We then pay rent and council tax. I also don’t have private bin collection and our post goes to the main business office rather our house. I don’t want to be mean but council tax doesn’t just pay for bins, so I think that’s a silly excuse for thinking you didn’t need to pay.

I’m sure the council will agree to a payment plan but very surprising they haven’t tried to get hold of the money before now!

L0bstersLass · 15/06/2021 15:42

@CTfuckup

I've just had an email from my company saying that in the small print of all rent agreements including mine it says that we are liable for any council tax if that property requires it, mine is the only accom that does which is why others who live there didn't pay either but I do. I still don't understand though as no one ever sent me a bill, statement or asked me for it. Work never mentioned it. I moved into the accom from my parents house I didn't know I had to phone the council I hadn't done anything like it before. Can I really be liable for this much money for not knowing I needed to phone them? I fully appreciate that you can't play dumb and get out of things, but that's never been my intention and the second I moved into a property where I knew I was liable for my council tax ie my own house I phoned them to arrange to do so. It's all just a huge miscommunication somewhere. I'm so upset
Does the small print of your rent agreement say that? I wouldn't take their word for it. It may be something they've added since yours was signed.

Others have lived there and not paid, just you? That strikes me as very odd?

placemats · 15/06/2021 15:44

I moved home in the last 4 years but was a previous council tax payer and let them know my new address - they were late to send me a bill but that's another matter (never the less I was furious). There was an unpaid gas bill for the previous owners - developers - in the thousands but after ringing the gas company they told me not to worry and it would be written off.

In the mid 90s we moved into our bought home in London (Brent) and the council did try to get us to pay for unpaid council tax from the previous owners. We had no idea of their new address and refused to pay. They didn't take it further when we gave them copies of our moving in date and contract of buying from the solicitor. I was under the impression even then that Council Tax 'officials' were basically debt collectors in a local civil service setting.

MrsMoastyToasty · 15/06/2021 15:45

Do you have your tenancy agreement? What dies it say? Don't rely on your landlords/employer's say so.

excuseforfights · 15/06/2021 15:45

My friend had something similar. They sent her a letter asking if she lived at the address, and said CT hadn't been paid for 4 years.

She never replied and never heard from them again.

plumpuddisnice · 15/06/2021 15:45

What @NotATreacleTart said. I used to work in the CTax department and there is something not right about this.

After the last occupiers left, the CTax dept would have created an account with the owners being liable and possibly awarded an empty and unfurnished exemption for 6 months or until a new occupier moved in, ie you. So you really need to know who has been liable on their system for the last 7 years, because it must have been someone, and if not they should have been investigating who should have been liable. Sounds like the council has been massively incompetent here. You need to fight this.

starfishmummy · 15/06/2021 15:45

Can I really be liable for this much money for not knowing I needed to phone them

I'm afraid so.

But do check your own copy of the contract for the rental, because if it does say you are liable and you signed it then you really don't have a leg to stand on. If it doesn't

BarbaraofSeville · 15/06/2021 15:47

The OP will probably have to work quite hard to get a payment plan. Council tax is a priority debt and they can be really mercenary.

However, if you engage with them and send a budget statement to prove that you can only pay a certain amount, they should accept it, or the judge will tell them to, if they take you to court.

You've done debt management before. Hopefully you have learned how to put together a sensible sustainable budget and not give into pressure to pay an unaffordable amount that leaves you short for essentials.

A lot of contact details on Moneysavingexpert:

www.moneysavingexpert.com/loans/debt-help-plan/

GreyhoundG1rl · 15/06/2021 15:47

Can I really be liable for this much money for not knowing I needed to phone them
Unfortunately, yes. Ignorance of the law is no defence.

UnChatNoir · 15/06/2021 15:49

@excuseforfights

My friend had something similar. They sent her a letter asking if she lived at the address, and said CT hadn't been paid for 4 years.

She never replied and never heard from them again.

They gave up that easily? Confused
Atalune · 15/06/2021 15:49

I don’t think you’re liable.

Where is your tendency agreement- of any sort form this property? Any paperwork look it out now and check it over.

I think the CT are changing their arm here. Don’t roll over on this, get advice and get checking! Also back dating for so long seems onerous. Have you looked on the money saving expert forum? Someone else may have had a similar situation.

Don’t fret it will work out. Even if you pay £1/week it will be ok.

Atalune · 15/06/2021 15:50

Chancing their arm

GreyhoundG1rl · 15/06/2021 15:50

@excuseforfights

My friend had something similar. They sent her a letter asking if she lived at the address, and said CT hadn't been paid for 4 years.

She never replied and never heard from them again.

I don't believe that for a moment.
xsjrx · 15/06/2021 15:51

You need an original copy of your contract, did you sign and return it to your company so they could keep it on file when you started?

Like a PP said your company could have changed the agreements since then so I would want to see the original to make sure. I would not take liability or set up a payment plan at moment until you fully get to the bottom of things and find out all the info/have the necessary documents - contract, banding, where repayment letters were sent, when they were sent etc so you have a better picture of what might have occurred and where you stand then.

BarbaraofSeville · 15/06/2021 15:51

Question for the people who work in council tax - don't they write to every residential property every year to confirm occupancy for council tax purposes? We certainly get an annual letter, despite living here for over a decade with no changes to occupants.

So shouldn't such a letter been sent to the OP? Although if it's been sent to 'the occupier' at her employer's address, anything could have happened to it, although you would have thought that in all that time, they would have caught up with the OP a lot quicker than they have done.

MossRock · 15/06/2021 15:52

Bluntness the council need to be billing people too so the lack of bills, demands or inspections for a residential property is an issue. There will be many people who are unaware of their statutory liabilities through no fault of their own, just through youth and inexperience plusMH issues etc, living abroad, and we aren’t mind readers so the state needs to be doing their part to make people aware.

Also that the OP shared an address with a business and does not have her own post box so cannot be 100% sure that all her post will be given to her. Young people are often vulnerable to this type of live-in situation where the employers know what’s what but leave the young person to flounder.

The point about not leaping to admit liability is to make sure that she only takes responsibility for what is her fault, not take the blame for other people’s mistakes.

I’m pretty sure that it was lack of bills and inspection that were the reasons my friend was not deemed liable. They had been told by the dodgy developer and dodgy letting agent that all bills were included and the building under redevelopment with no separate utility supplies even, so she had no reason to think that she had to pay CT.

Loubiemoo · 15/06/2021 15:52

Was it military accommodation OP? Tax is included in your rent. You pay the national average so that you are not disadvantaged.

I think you need proper legal advice before you talk to them. Do not admit any liability until you have.

SpaceRaiders · 15/06/2021 15:52

She never replied and never heard from them again.

She better be very careful that debt collector doesn’t come out of the woodwork.

excuseforfights · 15/06/2021 15:52

They gave up that easily? confused

I don't believe that for a moment.

We are very close, she showed me the letter.

vixeyann · 15/06/2021 15:53

This seems really odd. If you hadn't paid in that time, they wouldn't have just left it. It would have gone through numerous det collection agencies, who would have visited the property repeatedly and, finally, you would have a CCJ against you. If you've just completed on a house, I am really surprised that nothing has come up on your credit report.

excuseforfights · 15/06/2021 15:53

@SpaceRaiders

She never replied and never heard from them again.

She better be very careful that debt collector doesn’t come out of the woodwork.

She moved out of that property in 2016 so getting close to statute of limitations I think?
plumpuddisnice · 15/06/2021 15:54

OP seek advice, check your rental contract and as stated previously you need to find out who they've had as liable all these years and if they've written to them, if so how can many times etc.

If you get no where with the above, there is the ombudsman who you could make a complaint to. If it is the councils incompetence it will at least flag it up with the ombudsman. Link here www.lgo.org.uk/make-a-complaint/fact-sheets/benefits-and-tax/council-tax

Maskless · 15/06/2021 15:54

First of all DON'T BE SCARED!

If they never wrote to you in 7 years with a CT bill, how would you know you had to pay it? You were just a teenager.

They can't take your house, and they can't put you in prison! Stop panicking!

Explain in a letter what you've told us here and they will work out a way for you to pay it off monthly. Any problems, contact your local councillor.

Moonshine11 · 15/06/2021 15:58

Why has no one been sent to your door within those 7 years?! They are normally very quick when it hasn’t been paid.

Swipe left for the next trending thread