What Happens if I Don’t Pay my Council Tax Arrears?
If you are struggling to pay your council tax arrears, knowing what could happen next can help you take the right steps before things escalate. Council tax arrears affect hundreds of thousands of households across England and Wales each year, and understanding the process is the first step towards resolving the situation.
What Happens When You Fall Behind on Council Tax Arrears
When you miss a council tax payment, your local council will typically follow a set process. Initially, you will receive a reminder letter giving you around seven days to pay. If you miss a second payment, the council may send a final notice requiring you to pay the full year’s council tax in one go.
If you still cannot pay, the council can apply to the magistrates’ court for a liability order. This is a court order confirming that you owe the council tax and giving them legal powers to recover the debt.
The Liability Order and Court Summons
Before the court hearing, you will receive a summons stating how much you owe and when the hearing takes place. At this stage, we strongly advise contacting your council to try to arrange a repayment plan. You cannot negotiate a plan at the hearing itself, so acting early is essential.
If the prospect of dealing with the council feels daunting, Council Tax Advisors can negotiate on your behalf and help you reach an agreement before the court date.
What Can the Council Do After a Liability Order?
Once a liability order is granted, your council has several options to recover the council tax arrears:
- Send bailiffs (enforcement agents) to your home to collect the debt or take goods. Read more about what powers bailiffs have
- Apply for an attachment of earnings order, instructing your employer to deduct money directly from your wages
- Deduct money from certain benefits
- Apply for a charging order against your property, which could eventually lead to forced sale
- In extreme cases, apply to make you bankrupt or even seek a prison sentence (up to 90 days)
The GOV.UK guidance on council tax arrears provides further detail on the enforcement steps your council can take.
Can You Go to Prison for Council Tax Arrears?
Imprisonment is extremely rare and is used only as a last resort. The council must prove to a magistrate that you have wilfully refused to pay (not simply that you cannot afford to). If you are genuinely struggling financially, this outcome is very unlikely, but it is still important to engage with your council rather than ignoring the situation.
How to Deal with Council Tax Arrears Before It Gets Worse
The best way to avoid escalation is to act quickly. Here are some practical steps you can take:
- Contact your council as soon as you realise you cannot pay. Many councils will agree to a payment plan if you reach out early
- Check whether you are eligible for council tax reduction or support
- Check if your council tax band is correct, as you may be paying more than you should
- Contact Council Tax Advisors for free help negotiating with your council or dealing with bailiffs
Get Free Help with Council Tax Arrears Today
Council Tax Advisors specialise in helping people across England and Wales deal with council tax arrears. Whether you have received a reminder, a court summons, or a visit from bailiffs, our team can step in and help negotiate an affordable solution on your behalf.
Our service is completely free of charge. Contact us today to get the support you need, or read our latest council tax arrears update for the most recent changes.
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This article provides general information only and does not constitute financial or legal advice. For free, confidential debt support, contact StepChange or Citizens Advice.