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

[CTfuckup]

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.

@BarbaraofSeville you will receive an annual bill. If a CTax bill hasn't been going to the OP's previous address either addressed to her or the owner, there must of been a bill being sent somewhere.

Op needs to find out where these bills have been sent to and in who's name.

@Moonshine11

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

Exactly. Some years ago DP was pursued for non payment of business rates (failing business, we had no money) and the bailiffs were round our house repeatedly.

So even if the council don't have direct contact with you by mail, they've overlooked an awful lot of their normal procedures as I would have expected them, or the bailiffs, to have been at your doorstep in under 7 months of non payment, not after 7 years.

Can I add that although we didn't have to pay that bill in Brent, they did 'get us' in the end and we got a small charge for a couple of days for the previous occupancy. Brent even went to Camden to see if we had any extra arrears - we hadn't.

Justto be clear, a CCJ will not be awarded against you and non paid Council Tax does not affect your credit score. Council Tax arrears go through the magistrates court not the County Court. But it is a priority debt and you can technically go to prison for non payment.

@BarbaraofSeville exactly! I’ve known of bailiffs to someone’s door before.
It just doesn’t add up op. You seen to get legal advise

Would you have gotten single person discount or any council tax benefit it might be possible to apply these.

Tbf though, most people know that they have to pay CT & wouldn't need telling.

And although she wasn't told that she needed to pay it, she also wasn't told that she sisn't need to!

That said, it is odd that nothing speculative has been sent out since the previous occupant paid CT.

@placemats

It could be a scam.

I would want a detailed summary from the council. If they have never issued a bill, then I can't see that you could be liable for the debt.

See CAB but be aware that this organisation does give standard replies that are available on the webpage and they take down lots of details.

Personally, I'd see a solicitor.

A scam by whom?

Are you suggesting that the council is deliberately lying about CT being due or that someone somewhere is pretending to be the council.

I can't see how that could be the case

@Bluntness100

The onus is on the occupier to tell the council, not for the council to catch the occupier. If they were told the property was empty and then the op never told them she’d moved in and her rental agreement says she’s liable then the error is hers. Arguably the council could have kept checking but it doesn’t absolve the op of the debt.

Even if the council were told the property was empty council tax would have to be paid by whoever owns the property.

My parents' house is empty because they both died but we are still having to pay council tax.

No way would a council just not receive a penny of council tax for 7 years and not do anything. They would be chasing after a couple of months

"....didn't receive basic things like bin collection or even post..."

FYI This shows where one councils council tax is spent. It's a lot more than the bins!

OP, I wouldn't panic just yet. Hopefully it will get sorted out. Even if it's a long payment plan.

How did you come about being aware that you had to use the business address as your own, op?
Did your employer tell you that?

I wonder whether the employing company were paying it but it's come up in an audit (and they've realised their error).

OP was there a gap between the previous resident moving out and you moving in? And if so do you know how long? How do you know the previous tenant did pay CT? And if they did why did you think you didn't need to?

@diddl

Tbf though, most people know that they have to pay CT & wouldn't need telling.

And although she wasn't told that she needed to pay it, she also wasn't told that she sisn't need to!

That said, it is odd that nothing speculative has been sent out since the previous occupant paid CT.

Not necessarily, I had no clue about council tax when I was a student. I know now students don't pay, but had I moved into staff accommodation I would have continued to have no clue about council tax.

ClarisseMcClellan

People have been sent letters regarding non payment of bills and they have been very convincing.

What needs to be known by the OP is:

Did the letter include detailed previous letters of non payment. If this hasn't been included then I would be immediately calling the council and asking them to furnish me with detailed information and expecting that before any payment is made.

OP do not give out any of your bank details unless there is a verified paper trail.

I'm currently putting to Action Fraud a case of egregious scam phone calls to both my land line and my mobile.

I think the bit that everyone seems to forget is the word tax this is a government tax collected locally. The powers are far and wide and frankly having worked for them at times terrifying.

As @plumpuddisnice has said, those of who have worked in council tax and business rates know something weird has gone on here. The OP needs to speak to CAB because someone has been liable on that account for 7 years, maybe not paying anything but definitely liable, named and the bill sent every year with it saying if there is any change you need to let us know.

There are set procedures for the bill, when it is sent out (every year) the fact that it is a 10 month arrangement rather than 12, if you do a weekly payment plan for your current ctax year it is confirmed by letter and they have to send a letter accompanying this to say that this is a deviation from the standard 10 months as it is all legislation based. The whole bill, reminder, final reminder (full balance due) summons to court is all the same across the country or it was when I worked there.

Once that summons goes out to you to summon you to court we were allowed to agree a payment arrangement but only with the Liability Order going through (what the court grants).

That is the far reaching piece the council need to go guns blazing. This grants them to either take it directly from your earnings or send in the bailiffs. The Attachment of Earnings order is a set percentage and they can take 2 years previous council tax at the same time. Here is how much they can take, this is not who I worked for just the first google hit but honestly, always pay your council tax www.northampton.gov.uk/info/200028/council-tax/996/council-tax-attachment-of-earnings

As an example for the non-link clickers if your net weekly earnings are exceeding £225 but not exceeding £355 they can take 12% straight from your salary but they can issue 2 orders at once so they take more money. They want it in and want it in quickly.

I will say that as an employee we would bend over backwards to help people, there is a difference between can't pay and won't pay. Can't pay we do everything we can. Won't pay, you need to change your priorities bill wise.

I'm suspecting this ties into you not having a postal address/ being told you haven't got a postal address.

@NewModelArmyMayhem18

I wonder whether the employing company were paying it but it's come up in an audit (and they've realised their error).

OP was there a gap between the previous resident moving out and you moving in? And if so do you know how long? How do you know the previous tenant did pay CT? And if they did why did you think you didn't need to?

I wondered if this was the case too.

@placemats

ClarisseMcClellan

People have been sent letters regarding non payment of bills and they have been very convincing.

What needs to be known by the OP is:

Did the letter include detailed previous letters of non payment. If this hasn't been included then I would be immediately calling the council and asking them to furnish me with detailed information and expecting that before any payment is made.

OP do not give out any of your bank details unless there is a verified paper trail.

I'm currently putting to Action Fraud a case of egregious scam phone calls to both my land line and my mobile.

But this all stems from the OP speaking to the council, she hasn't had a letter out of the blue. It can't possibily be a scam unless a council employee has a side hustle of opportunistic trying it on.

And ime Action Fraud are absolutley useless, they won't do anything about scam phone calls. I don't actually know why they exist, I once sent them full contact details for someone who tried to scam me and they didn't even bother to acknowledge the contact never mind follow it up

I presume the business just paid business rates and an annex that was accommodation is liable for council tax. I would get some advice as perhaps your employer will be liable

Did you sign the agreement and have you kept a copy?

Sorry Action Fraud - my landline
7726 my mobile - though I have blocked and reported to my provider and it has stopped.

I would be very suspicious of this:

Recently purchased a house - contacted council to set up payment for council tax.

Get a bill for £10,000 arrears.

This really really needs someone legal to go through this. Op, you must seek legal advice.

Try and contest it in every way you can. You could ask your previous employer whether people have to pay it. Contact Stepchange, they might have some ideas to contest it.

If you do end up having to pay it, they'll set you up a relatively reasonable payment plan.

@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?

How do you think anyone does who does not pay their own bills e.g. lodgers?

Fraudulence never happens anywhere does it ClarisseMcClellan

Everyone, everywhere is squeaky clean.

Perhaps our scam calls don't exist at all.