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If you have received letters from us regarding unpaid council tax you may be wondering what you should do and what could happen next.
Below is a list of the types of letters we send out and what they mean.
Why is it sent? - A bill will show how much council tax you owe for the year and will normally show what instalments you should pay and when. They are normally sent at the start of the financial year, or if your tax alters during the year, for example, due to changes in council tax benefit or if you move address.
What should I do? - Pay the instalments on or before the due dates.
What if I cannot pay as billed? - Pay as much as possible as regularly as possible. If you are paying less than the due amount or paying after the due date then you will receive further notices. We will not put recovery action on hold at this stage unless there are exceptional circumstances.
Why is it sent? - This is sent because our records show that you have fallen behind with your payments. This usually means you have not paid an instalment on time or that you paid less than you should have done. It may also be sent if you still owe money from a previous year.
What should I do? - You should bring your account back up to date within the specified time. If an account is brought up to date and payments are kept up to date, no further letters will be sent.
What if I cannot do this? - If you do not bring your payments up to date you will lose your right to pay by instalments. No further reminders will be issued and the next document you will receive will be a court summons for the full balance on your account. Court costs will be incurred at this stage.
If you are unable to pay as required you must contact us immediately.
Why is it sent? - It is usually sent because you have had a First Reminder, brought your account up to date and then fallen behind again.
What should I do? - You should bring your account up to date within the specified time and keep it up to date.
What if I cannot do this? - If you do not pay within the specified time you will lose the right to pay by instalments. No further reminders will be issued and the next document you will receive will be a court summons for the full balance on your account. Court costs will be incurred at this stage.
If you are unable to pay as required you must contact us immediately.
Why is it sent? - This is normally sent if you have had a Second Reminder, brought your account up to date and then fallen behind for a third time. This letter will not be asking for the instalments that have been missed. This letter will cancel your right to pay by instalments and you will be asked to pay the remaining balance on your account in full.
What should I do? - You must pay the balance on your account in full within the specified time. If you pay the account in full you will not be sent any more letters.
What if I cannot do this? - If you do not pay the account in full you will be sent a Magistrates' Court Summons (see below). If you cannot pay in full you should pay as much as possible as regularly as possible. The Council Tax staff will not re-instate instalments unless there are exceptional circumstances, nor can they set up arrangements at this stage.
Why is it sent? - This is sent to tell you that because you are in arrears the Council is going to Court to obtain a Liability Order against you. This is a legal document which states how much you owe us and it gives us the power to send your account to the Bailiff or order deductions to be made at source from your wage or DWP payments (if this happens, you do not have the power to decide how much is taken from your wages - it will be a set amount decided on a percentage basis, for instance a 12% deduction from a net wage of £1000 per month.
Costs of £80 will be added to accounts at Summons stage.
There is no need for you to attend the court hearing if you agree that the balance is due and want to make a payment arrangement. If you have a valid defence, for example, you have paid the bill or you are not liable for the tax, then you should attend the hearing or contact the council tax office before the court date. Please note that if you have a claim for council tax benefit or an appeal against your valuation band which has not been resolved, these matters are not recognised as valid defences against the issue of a liability order.
What should I do? - You must pay in full before the Court date. If you pay the balance in full (including costs) before the Court Date you will not be sent any more letters.
What if I cannot do this? - If you cannot pay before the Court Date, but wish to make an arrangement to clear your account please contact us straight away. Any arrangement that you make will still include the costs, but if you keep to the arrangement we will not take any further action against you. The Council Tax staff will not cancel a summons even if you bring your account up to date.
Once an account has been to Court there are five basic courses of action that we may take, depending on what we believe is the best way to secure payment. These are:
1 - Make an arrangement
You can make an arrangement to clear your arrears by making regular weekly, fortnightly or monthly payments.
Arrangements can be made by post, telephone or by visiting one of our offices. It is normal policy to make arrangements that will clear the arrears before the end of the financial year. Arrangements that go beyond this date are at our discretion.
If an arrangement is broken, we will take one of the following courses of action.
2 - Bailiffs
The Council may pass your account to the bailiff for collection. Any arrangements for payment on accounts held by the bailiff must be made direct to the bailiff's offices and not the council. Equally, any queries about bailiff fees must be addressed to the bailiff. Once an account is passed to the bailiff we will not ask for it to be returned unless there are exceptional circumstances.
Council Tax Bailiff Fees (PDF File, 197kb)
Example Bailiff Letters (PDF File, 24kb)
3 - Attachment of Earnings
If you receive an Attachment of Earnings Order (AOE) your employer will also have received a copy. The AOE instructs your employer to make deductions from your wage and send the money direct to the council. Your employer has no discretion as to whether they make deductions - the AOE is a legal document and an employer can be prosecuted if they do not make deductions. You cannot cancel an AOE - once it is issued it can only be stopped by either:
a) payment in full or
b) we instruct the employer to withdraw the AOE (though this is rarely done, and only under very exceptional circumstances).
We can issue a maximum of two AOEs against you. If two are issued they are run simultaneously and not one after the other (you will have two deductions made from your wage each week/month).
4 - Deductions from Income Support / Job Seekers Allowance / Employment Support Allowance
If you are in receipt of Income Support, JSA, ESA or Guaranteed Pension Credit, we can ask the Department for Work and Pensions (DWP) to deduct money from your benefit at source and send it directly to the Council. Only one deduction order can be set up by the Council at any one time. The deductions are currently £3.55 per week. As with an AOE the deductions will only end if payment is made in full or if we agree to withdraw the Order.
5 – Other Remedies
Where no other form of recovery has been successful, the Council may commence proceedings to have you either committed to prison or declared bankrupt.
If you receive a committal warning you must make an arrangement to clear the debt. If committal action is taken it will be for the amount of Council Tax owed and any bailiff / court fees.
Failure to make payments or an arrangement for payment could ultimately result in you being committed to prison for a maximum of three months.
If a liability order has been granted for over £750, the Council can petition for your bankruptcy. You will be served with a Statutory Demand giving you 21 days to clear the debt in full. If you cannot pay, the Council would seek to make you bankrupt. This action, if successful, will affect your credit rating and may lead to you losing your home and any other assets which you own.
Remember - we are not just here to collect money, we are here to try and help you. Please contact us at any time if you are having problems paying your Council Tax.
A number of local and national advice services may also be able to help with financial issues.
For customer comments:
Newark and Sherwood District Council