If you miss a council tax payment and don’t repay what you owe, you’ll be in arrears to your local council. They will then be free to take legal action against you to recover the money owed.
It’s normal to worry about the potential legal consequences of council tax debt but in most cases, prison will only be used as a last resort and if every other method of debt collection has been unsuccessful.
What happens if you don’t pay your council tax debt?
There are many things that can happen if you don’t pay your council tax debt. Because it’s considered a priority debt, the consequences of not paying can be severe.
Here are some of the things that can happen if you’ve been served with a final notice and you still don’t pay your local council what they are owed:
Send bailiffs to your home
The first thing likely to happen when you don’t pay your council tax debt is that your local authority will send bailiffs (officially called enforcement agents) to your home. This will incur further costs, which you’ll need to pay if you don’t make payment straightaway.
Before your local council can do this, they must apply to the court for a liability order. This is a legal demand for payment that gives them additional powers to collect the debt and sometimes requires a court hearing.
However, bailiffs must serve you with a reminder notice giving you at least seven days’ notice that bailiffs before visiting you and can only visit between the hours of 6am and 9pm.
Take the money from your wages
The next thing your local council is likely to do when you don’t pay council tax debt is to take a fixed percentage from your wages before you get paid.
This is known as an attachment of earnings order and will remain in place until your total debt has been repaid.
Legally, you must be left with at least 60% of your wages after all deductions have been made.
Secure the debt to your home
One of the more serious consequences of not paying your council tax debt is being served with a charging order, which secures the debt to your home.
This means that, if you sell or remortgage your home before the debt is repaid, the money will go towards paying your creditors first (including interest and costs).
The council might also force the sale of your property, using the money made to repay what you owe.
Make you bankrupt
If you owe at least £5,000 in council tax arrears and the debt has been accruing for some time, your local council can apply to make you bankrupt on your behalf.
They might do this if they know you have many high-value assets that can be sold to recover payment of the debt.
However, this is only ever used as a last resort and after other methods of debt recovery have proven unsuccessful.
How much debt do you have?
Can you go to prison for council tax debt?
There are various things that can happen when you don’t pay your council tax debt, ranging from enforcement action to bankruptcy.
However, if you owe council tax debt and the situation has escalated or gone on for some time, you risk imprisonment for up to three months.
This only usually happens if the court decides that you’ve deliberately refused to repay what you owe or have gone to great lengths to avoid making up for the money you’ve missed.
Therefore, while not impossible, it’s extremely rare that you will be served a prison sentence for unpaid council tax and you’ll be given various opportunities to repay what you owe before this stage, including making reduced payments until the debt is repaid.
What should I do if I can’t afford to pay council tax?
Everyone experiences financial difficulties from time to time, but if you’re worried you won’t be able to afford your next council tax payment, it’s important to do something about it sooner rather than later.
Regardless of your circumstances, there is always help available.
Here are some of the options available to you if you can’t afford your council tax:
Inform your local authority
The first thing you should do if you can’t afford your council tax is to inform your local council. They might give you a council tax reduction or let you pay your council tax over 12 months instead of 10, meaning you pay slightly less each month.
Check your benefit eligibility
Checking your benefit eligibility can give you peace of mind that you’re claiming the maximum financial help you’re entitled to – especially if you’ve experienced a sudden financial emergency you weren’t expecting, like a job loss.
Seek free debt advice
If you’ve struggled with debt for some time and don’t know how you should deal with it, don’t hesitate to reach out for free advice from an expert. They can help you understand the extent of your debt and determine what your next steps should be.
“No fuss, just simple, honest advice. Communication is good and they make the process as easy as they can.”
Conclusion
Council tax is considered a priority debt, which means there can be serious legal consequences for not paying it.
However, while you can go to prison for up to three months for unpaid council tax debt, this will only happen in extreme circumstances and after every other form of legal action has been taken.
It’s important to do whatever you can to prevent missed council tax payments, such as informing your local council of your financial situation and reaching out for free debt advice.
