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.

Don’t panic!

Even if the worst comes to the worst you can pay it in little instalments.

However, firstly don’t admit liability. The first thing you want to do is try and get your employer to take responsibility. Check your contract, and talk to citizens advice.

If it’s clear from your contract you should paying it, then it will be reduced by 25 % for a single person - but you should also see if you can get say half of it written off. Talk to CAB to see if they can help negotiate or failing that an organisation like step change can can negotiate for you. It is really normal to get big debts like this reduced so the person isn’t under the cosh for a crazy number of years - so push hard for that - the CT would rather get some than none.

Whatever you do have to pay, contact step change and they’ll work out an amount that won’t threaten your house or childcare.

I don’t think CT hits your credit rating, so talk to CAB to make sure it doesn’t - it was a mistake so it shouldn’t.

Try not to worry it’s an arse but it will work out OK

If you did , indeed, sign an agreement that requires you to pay council tax if it applies, surely the employer was aware you weren't paying it? If the previous tenant was paying council tax, I assume they didn't have their own personal address either.
Some sort of paperwork must have followed up when the previous tenant left. To the business address.
Surely the employer must have some sort of duty to pass post meant for you, as the occupier, on to you?
So many questions!

@FindingMeno

If you did , indeed, sign an agreement that requires you to pay council tax if it applies, surely the employer was aware you weren't paying it? If the previous tenant was paying council tax, I assume they didn't have their own personal address either. Some sort of paperwork must have followed up when the previous tenant left. To the business address. Surely the employer must have some sort of duty to pass post meant for you, as the occupier, on to you? So many questions!

This is true - surely if the bills were going to your employer, then they would either show a bill accruing and not being paid, and letters about non payment, or they would show that the house was still being charged as unoccupied.

And why do YOU have to pay but everyone else is

Anyway, there are a few things to get it recalculated. If it was an annexe or flat, the banding sounds high - check that it is only for the bit you lived in.

secondly 25% can be wiped straight away because of single occupancy.

Thirdly - your wage at 19 may be low enough to have been eligible for council tax rebate - certainly worth looking at as well

surely the employer was aware you weren't paying it?
How would they know?

@GreyhoundG1rl because the ops post is going to them and because I'm working on the assumption that if she wasn't getting correspondence from council tax, they were.

[quote FindingMeno]@GreyhoundG1rl because the ops post is going to them and because I'm working on the assumption that if she wasn't getting correspondence from council tax, they were.[/quote]
Ah, right.

I suspect the business had extended empty property relief. So they were paying nothing and the council wasn’t chasing either . There’s going to be some noise in there that’s caused this.

The op signed to say she’d pay the tax, didn’t notify the council she was moved in, the empty property relief stayed, the business did nothing as it was her responsibility and seven years later this is the outcome as she’s now told them she was living there for that time.

Have worked in this area previously including in resolution

I would check with the council as to when the accommodation was registered as a separate domestic property with the valuation office.

Has anyone lived there prior to you. If not find out if the property was registered as liable for Council Tax.

Once you have this information speak to your council tax department to try and find out what has happened. Be aware that if the business was paying it and then it was discovered that they were not liable for the accommodation then you will be liable for the council tax from the time you started living there. Also the council will not be able to give you information on the business account.

Be aware that Council Tax has what is called a liability hierarchy and as the tenant/occupier you would be liable from the tenancy start date.

When you have the information speak to CAB/councillor/MP and look into requesting a write off of the historical debt under Section 13A LGFA due to severe financial difficulties.

Best of luck just make sure you keep in contact with the Council Tax department every step of the way to try to minimise additional recovery of the debt.

Would you really expect a 19-year-old to check through her tenancy agreement with a fine-toothed comb? If she wasn't aware of Council Tax she wouldn't have been looking to find it buried in the contract as needing to be paid? I think the employing organisation should have sent a covering letter with the tenancy agreement drawing attention to the CT payments due going forward?

OP still hasn't answered the salient question about how she knew the previous tenant had paid CT? As I'd have thought that would be key.

as staff accom was cheap and all inclusive
Hmmm, irregardless of whether CT is due to be paid to the council (and it may well be), if this ‘all inclusive’ was a clause in OPs employment contract, that would certainly imply it isn’t OP that is liable to pay it.

That is to say although, as occupier, the council would be entitled to be holding OP liable, there would surely be some comeback for OP on the employer

@placemats

Fraudulence never happens anywhere does it ClarisseMcClellan

Everyone, everywhere is squeaky clean.

Perhaps our scam calls don't exist at all.

Don't follow your logic there, I said that it's supremely unlikely that as the OP contacted the council, gave all her info and they then realised that she owed back CT there could possibly be a scam.

Perhaps you could expand on how you get from that to I don't think fraud happens and that everyone is squeakly clean.

Only a fool would think that scam calls don't exist but that has nothing to do with this very specifc niche situation I'm sure you'll agree

I think you need to move on from this being unfair/you didn’t know etc. you are in this situation now, contact the council and get some legal advice on options to get some of it written off etc.

I am a US citizen and lived abroad my whole adult life, no one told me about a specific tax filing requirement related to foreign accounts so I never did. 10 years later I found out about it. Not filing carried up to a $10k/year fine and possible jail time. Fortunately the gov never pursues ordinary people for this if you do back filing so I didn’t have any problems. It was super scary snd stressful and I felt like SOMEONE should have told me. The reality is, it’s part of being a grown up to figure this stuff out and more importantly, grow up and deal with it once you do find out about it. So stop whining and just get some advice to deal with it!

@DentonsFringeArnottsWaistcoat I agree. Particularly if the accommodation part had been registered empty for any period, surely the employer should have let the Council know once it had become inhabited again (which would have set the chain in motion for OP to become aware that she was liable for CT).

Would you really expect a 19-year-old to check through her tenancy agreement with a fine-toothed comb

Yes most students at this age have to do this as they move into rented.

surely the employer should have let the Council know once it had become inhabited again

No that’s the ops responsibility. Just like if you move house it’s not your job to tell the council who has moved in. It’s the new owner or tenants job. The landlord doesn’t do it either,

After a Tax credit and housing/Council tax benefit nightmare about 6 years ago, I ended up owing the council £7k. I just set up a Direct Debit for £10 a week and they leave me alone apart from every once in a while asking me to pay more.. I ignore and carry on paying £10 a week. The courts won't give you a CCJ if you are paying something and the council are unlikely to take you to court anyway as you are making an effort.

Okay, I stand corrected. FWIW I'm not sure most students would necessarily do this. I had to remind DS about proving their CT exemption when they moved into their first student rental in Year 2. He wouldn't have had a clue otherwise.

@NewModelArmyMayhem18

Okay, I stand corrected. FWIW I'm not sure most students would necessarily do this. I had to remind DS about proving their CT exemption when they moved into their first student rental in Year 2. He wouldn't have had a clue otherwise.

Him being clueless wouldn't absolve him of any liability 🤷🏻‍♀️

WEll there wouldn't have been any liability because they're all students!

They have to have billed you. I’d ask for an official write off.
Make sure you ask for a hold to be put on it on the meantime.

@NewModelArmyMayhem18

WEll there wouldn't have been any liability because they're all students!

I meant any potential liability. As in op's case. Inability to understand the issues is no defence.

Sorry op missed the part where the previous occupier paid CT.

It may well be that if there was a gap between the last occupier leaving and your tenancy starting that a empty property discount/exception was applied and not removed. Normally these things have a 2 year review built in but it may have remained on the system.

It does seem as though an issue exists in regards to you not receiving a bill. I would also question why you do not have your own postal address separately to the business as this should be registered with the valuation office. Ditto not having bins etc

Something seems amiss. The advice re contacting CAB/Councillors/MP still stands re historical debt you may be liable for you have nothing to lose in requesting a write off under LGFA ( local government finance act).

Don't forget that many solicitors will give you a free half-hour consultation, but go prepared to make the most of it.

Fab advise

Most solicitors won’t actually give you a free consultation. Certainly not for this type of thing