Council Tax underpayment docked from wages without permission

cepheus

A friend has recently received a letter informing him that he has underpaid his council tax and that a sum will be deducted from his wage each week to allow for this. The total amount owed, the dates and reasoning behind the underpayment was not stated in the letter. His local town hall suggested to him that he would need to pay typically £45 per week which is a substantial proportion of his wages. The letter appears to assume he received an earlier letter which may have contained the details so the deductions could be imminent. However his wife (who he has been living with for about 5 years) got an almost identical letter earlier this week. Both letters were addressed to them individually. He normally pays council tax by cash and has never agreed that any sum can be taken out of his wages.

I don't have any more information since I don't have access to the letters and he lives some distance away. He has tried the Citizens advice, an 0845 number (presumably the Council), and has enquired about legal aid without any luck.

The main issue is that he cannot afford to pay £45 per week rather than the total amount.

Can the Local Authority force his wage to be docked without permission?

Can he stop the payments through his employer?

Does he have any legal rights to agree on a lesser amount each week and if so who should he contact?

McKneff

Yes the locasl authority has the right to do this. It will not be £45, no amount can be announced at any given, it can be different every week depending on his earnings. It will be a percentage so that if he does overtime he will pay more,
The CAB should be able to tell him what the percentage is

mackemlass29

I have heard of council tax being deducted following an attachment of earnings order,where there has been non payment of council tax.I'm just confused as to how the council found out where your friend was employed.The deductions are normally worked out on a percentage of your wage so they are affordable.The employer has a legal requirement to follow the councils instructions,I suggest your friend contacts the council if making the payments will cause them hardship.

cepheus

£45 is 25% of his wages and he is very worried! Perhaps he was given the incorrect information. I think he deserves an explanation why the money is being taken out. Shouldn't he have been asked first?

McKneff

i can find out tomorrow just what the percentage is but it is nowhere near 25%. Yes, i think he has been given incorrect information and tell him to try not to worry too much

cepheus

Thanks for this Annie, could you find out if it is just the wage, or total household income including child benefit

McKneff

Off the top of my head it is just a percentage of the wage.
but i will check

pink_princess

Hi it is just his wage .im not sure on the percentage .
some-one i work with has an attachment of earnings and they said that its around £7 per hundred that she earns.(sorry takes home)
HTH
PP

CIS

Hi, I work in council tax recovery.

The Attachment of Earnings can only be set up after a Liability Order was granted by a magistrates court. The council need no permission from the tax payer as the AOE is issued on the basis that a tax payer hasn't paid and therefore the court order was required to obtain payment.

The deduction to be taken are set in law but are calculated by the employer, the council merely supply a copy of the appropriate regulations however in this case it does appear that they are giving him an option of payment to avoid the AOE being issued.

If he can't agree to the £45 per week then an AOE will be issued however be aware that if the AOE doesn't bring in a sufficient payment then it can be withdrawn at the council's discretion and then most likely issued to a bailiff for collection.

Weekly Net Earnings

Not exceeding £75 0%
Exceeding £75 but not exceeding £135 3%
Exceeding £135 but not exceeding £185 5%
Exceeding £185 but not exceeding £225 7%
Exceeding £225 but not exceeding £355 12%
Exceeding £355 but not exceeding £505 17%
Exceeding £505 17% on earnings up to £505 then 50% on the remainder

The key point is that he has no choice over the recovery used , its the council's choice, and if an AOE is issued then the employer is legally obliged to take it from any wages untl its discharged or withdrawn.

If he has any queries then he needs to speak to the council as they are the only ones who can advise him exactly what the debt is.

cepheus

If he can't agree to the £45 per week then an AOE will be issued

He hasn't agreed to anything he only knew about it last week, but he seems to think the deduction will be immediate and without any permission! Does he need to sign anything before they do this?

Assuming the list is the AOE, then he should be paying about £10 to 13 per week which he would agree to if given a choice. Sounds like someone has confused month with week!

pink_princess

It will be within the next two pay packs and he won t have a choice and won t hear anything else either.He does not have to sign anything or agree to anything .
Just when it happens it happens .I think the letter to your friend and the employer are sent at the same time.