Council tax arrears
Falling behind on council tax is common, and there are usually steps you can take. Here’s where you could start.
What council tax arrears are
Your council bills you for council tax, usually in monthly instalments. If you miss one, it may send a reminder, and if you still don’t pay, ask for the rest of the year’s bill at once.
Council tax is a priority debt: the council has strong powers to collect it, so it usually comes before cards and loans.
This guide covers England and Wales. Scotland and Northern Ireland follow different rules.
What can happen if it isn’t paid
The council usually takes these steps in order, and each may add costs. Getting in touch early often helps.
Reminders and a final notice
If a reminder isn’t dealt with, you may lose the right to pay by instalments and be asked for the full year’s bill.
A court order
In England and Wales the council can apply to a magistrates’ court for a liability order, which may add court costs to what you owe.
Ways the council can collect
With a liability order, the council may use enforcement agents (bailiffs), take payments from your wages or some benefits, or in some cases apply for a charging order against a property.
More serious steps
For larger sums, a council can ask for bankruptcy. That’s uncommon.
What you can do now
Open the letters
Check what the council says you owe, for which years, and any date by which you need to reply. Keep every letter.
Check the bill is right
Ask whether you’re in the right band, and getting every discount or exemption you could qualify for, such as the single-person discount.
Ask about council tax reduction
Many councils offer a reduction if you have a low income. It may be worth applying even if you work.
Contact the council early
Explain what you can afford to pay each month and ask for an arrangement. Councils often prefer an agreed payment to the cost of further action.
Don’t borrow to pay it
A new loan or card to pay council tax could leave you with a harder debt. Get advice first.
When to get help
Speak to a debt adviser if you’ve had a liability order, a notice of enforcement or a bailiff’s letter, owe other debts too, or can’t see how to afford what the council asks.
Signs it may be time to talk to someone
- A liability order or court papers have arrived.
- A bailiff has written or visited.
- You owe council tax and other bills at the same time.
- Paying it would leave too little for food, rent or energy.
Free, impartial advice is available from MoneyHelper, StepChange and National Debtline. MoneyHelper
General information, not advice. Rules can differ in Scotland and Northern Ireland.
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