Council Tax Debt Advice | Fresh Start UK

What are council tax arrears?

If you have missed council tax payments, you’re considered to be in arrears, which means that you owe money to your local council. Council tax debt is very common and councils can quickly start further action to recover this by issuing a County Court Judgement (CCJ) against you and potentially using enforcement agents to collect outstanding amounts.

Key facts about council tax

Council tax arrears work differently to other forms of unsecured debt

Councils can apply for CCJs quickly when owed money

Bailiffs can be instructed to repossess goods to settle the amount owed

Once legal action has started, councils can get employers to deduct money directly from debtors’ wages

Managing council tax arrears

What happens if you miss a payment?

Councils typically send out payment reminders approximately two weeks after a payment is missed. If this debt is settled within seven days, you don’t have to do anything else and you will be able to continue paying this bill in instalments throughout the year.
If you fail to pay within seven days, or if this is the third time you’ve been late with payments within a year, you will be sent a final notice. This will instruct you to pay all your council tax for the rest of the year within seven days.
If you fail to pay following the final notice, councils can apply to the courts for permission to begin debt collection proceedings, which could involve taking money from your wages or sending bailiffs to your home or business.

What to do

Don’t wait for the council to contact you if you have missed a council tax payment. Get in touch with them straight away to discuss your situation.
Consider seeking debt advice to gain control of your finances.
If you are unable to repay the arrears, a debt advisor may be able to explore other options available to you.

Council tax bailiffs

Have greater powers than debt collectors
Can visit your home
Can remove goods from the property
Can clamp vehicles at the property

How to make an offer

You are able to make an offer of payment to the council at any point before enforcement action is used.
Work out how much you can afford to offer each month and send in your budget and offer of payment as soon as possible.
If your offer is refused, start making payments immediately to prove that it is affordable and you are able to reduce your arrears in this way.
Always include the council tax reference number and the liability order number, if there is one.

What Bailiffs...

Councils typically send out payment reminders approximately two weeks after a payment is missed. If this debt is settled within seven days, you don’t have to do anything else and you will be able to continue paying this bill in instalments throughout the year.
If you fail to pay within seven days, or if this is the third time you’ve been late with payments within a year, you will be sent a final notice. This will instruct you to pay all your council tax for the rest of the year within seven days.
If you fail to pay following the final notice, councils can apply to the courts for permission to begin debt collection proceedings, which could involve taking money from your wages or sending bailiffs to your home or business.

Don’t wait for the council to contact you if you have missed a council tax payment. Get in touch with them straight away to discuss your situation.
Consider seeking debt advice to gain control of your finances.
If you are unable to repay the arrears, a debt advisor may be able to explore other options available to you.

What Bailiffs...

Have greater powers than debt collectors
Can visit your home
Can remove goods from the property
Can clamp vehicles at the property

You are able to make an offer of payment to the council at any point before enforcement action is used.
Work out how much you can afford to offer each month and send in your budget and offer of payment as soon as possible.
If your offer is refused, start making payments immediately to prove that it is affordable and you are able to reduce your arrears in this way.
Always include the council tax reference number and the liability order number, if there is one.

How can I manage council tax debt?

Council tax debt should never be ignored as the problem can escalate very quickly and enforcement action can be taken. If you ignore these arrears, it’s likely that you will be taken to court quickly, which will involve court costs and bailiff fees being added on top of your debt.

If you can’t settle your arrears, ask the council if they’ll allow you to pay in smaller amounts. A budgeting tool can help you work out how much you can afford to pay back each month. You may also wish to consider seeking impartial debt advice if you're struggling with council tax debt.