If you are stuck in such a situation, here is what to do.

Mr. Alex Sharma has been diligent in paying his council tax manually every month upon receiving his salary. Following the annual rate increase in April, he unintentionally underpaid his instalment by £15. The Borough of Westhaven Council sent a reminder notice for the £15 shortfall, which required payment within seven days. Due to pressing personal matters, Mr. Sharma overlooked this notice. He has now received a final notice letter demanding not only the original £15 arrears but also the entire remaining balance of his council tax for the year, all to be paid within the next seven days. The letter states that if payment is not made, the council will apply to the magistrates’ court for a liability order. Mr. Sharma can pay the £15 immediately but cannot afford the full year’s amount in one lump sum. He is distressed that the council may reject a new payment arrangement due to this default.

Advice in such cases

In a situation like Mr. Sharma’s, the most critical action is to communicate with the council immediately. Ignoring the final notice will only lead to further legal action and costs.

• Contact the Council Promptly: Telephone the council’s revenues department as soon as you receive the notice. Do not wait.
• Explain the Circumstances: Calmly explain that the underpayment was an oversight, mention any mitigating personal circumstances without going into unnecessary detail, and reaffirm your intention to pay what is owed.
• Make a Clear Offer: Offer to pay the arrears (£15 in this case) immediately. Propose a sustainable and realistic payment plan for the remaining balance. Suggesting setting up a Direct Debit is highly advisable as it demonstrates commitment and prevents future missed payments.
• Highlight Your Payment History: Remind them of your consistent and good payment record up to this point, as this shows the default is an anomaly.
• Get it in Writing: After the phone call, send a follow-up email summarising the conversation and your offer. This creates a written record of your attempt to resolve the matter.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of 100 GBP to 400 GBP depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored.

Applicable Sections of Law

The collection and enforcement of council tax in England are primarily governed by the Local Government Finance Act 1992 and the Council Tax (Administration and Enforcement) Regulations 1992.

• Under these regulations, if a person fails to pay an instalment and does not pay the overdue amount after receiving a reminder notice, they lose their right to pay by instalments.
• The local authority is then legally entitled to issue a final notice demanding the full outstanding balance for the financial year.
• If this full amount is not paid, the authority can apply to a magistrates’ court for a Liability Order. This order confirms that you are liable for the debt and grants the council further enforcement powers. It is a civil matter and does not result in a criminal record.

If you are the complainant

From the council’s perspective, they are the complainant (or applicant) in this process. Their primary objective is the collection of public funds necessary for local services. They have a statutory duty to collect council tax and will follow a prescribed, automated process. While they have the right to demand the full annual sum, their main goal is to recover the debt efficiently. Court action is a last resort. Therefore, they are generally receptive to reasonable and credible payment proposals as it guarantees recovery without the additional administrative burden of enforcement.

If you are the victim

As the individual receiving the notice (the debtor), your priority is to prevent the situation from escalating. You must be proactive. You have the right to negotiate a payment arrangement with the council. While you have lost the statutory right to pay by instalments, the council can use its discretion to agree to a new arrangement. If a summons for a liability order hearing is issued, you have the right to attend court. However, a defence is only valid on very limited grounds, such as the bill being incorrect, already paid, or you not being the liable person. Inability to pay is not a legal defence against the granting of the order itself, but it is a crucial factor when negotiating a repayment plan.

How the police behave in such cases

The police have absolutely no involvement in the recovery of council tax arrears. This is a civil debt matter between you and the local authority. Enforcement is carried out by the council, and if necessary, by civilian Enforcement Agents (previously known as bailiffs), who are authorised by the court but are not police officers.

FAQs people normally have

• Will the council agree to a new payment plan? In most cases, especially for a first-time default and where there is a history of good payment, councils are very likely to agree to a new arrangement. They prefer guaranteed income over costly enforcement.
• What happens if a liability order is granted? Once the council has a liability order, they can use several methods to recover the debt, including instructing Enforcement Agents, obtaining an attachment of earnings order (deductions from your salary), or making deductions directly from certain benefits.
• Can I stop the process by just paying the small amount I originally missed? No. Once the final notice demanding the full year’s balance has been issued, that entire amount is now legally due. You must contact the council to agree on how it will be paid, even after paying the initial arrears.

What evidence is required?

When negotiating with the council, it is helpful to have a simple income and expenditure summary ready to demonstrate what you can realistically afford to pay each month. Keep a record of all your communications, including dates of calls and copies of emails. If you were to defend a liability order in court (which is rare), you would need concrete evidence, such as a tenancy agreement showing you were not resident, or bank statements proving the tax had already been paid.

How long will the investigation take?

This is a debt recovery process, not an investigation. The issue can be resolved with the council very quickly, often within a single phone call and a follow-up email, if you act promptly. If it progresses to court, the summons will state the hearing date, which is typically several weeks after the final notice is issued, giving you a window to negotiate a settlement and have the court action withdrawn.

Advocate Sudhir Rao, Supreme Court of India