C. tax liability order included in BR but council recharged

get_me_out

Went BR last August and a liability order for council tax was included that council held for all council tax to April this year.

They have now filed a second liability order for the council tax from Aug last year to April this year.

I did'nt think they could recharge this as the previous order included ALL tax until April this year.

Any one advise please

JCS1

BR would only cover council tax to the date of the BR Order, you would still be liable for council tax from that date.

fatou256

i found this form the technical manual

33.194B – Council Tax (amended November 2008)
Council Tax is a local tax set by local councils to help pay for local services URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter33/part8/Part%208%20notes.htm#12"]Note 12[/URL. There is one council tax bill for each dwelling, whether it is a house, bungalow, flat maisonette, mobile home or houseboat, and whether it is owned or rented. Generally speaking the occupier(s) of the property are the liable person(s) for the payment of the tax with some limited exceptions URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter33/part8/Part%208%20notes.htm#13"]Note 13[/URL .
Council tax is charged on a yearly basis from 1 April each year URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter33/part8/Part%208%20notes.htm#14"]Note 14[/URL but the liability to pay council tax is determined on a daily basis URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter33/part8/Part%208%20notes.htm#15"]Note 15[/URL The billing authority is required to make a demand for payment of the council tax separate to the notification of the amount of council tax and the tax becomes due when that demand is made but most council tax payers agree a statutory monthly payment scheme for payment of council tax URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter33/part8/Part%208%20notes.htm#16"]Note 16[/URL.
Any amount due and unpaid under the instalment agreement prior to the insolvency order is an unsecured debt in the proceedings URL="http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter33/part8/Part%208%20notes.htm#17"]Note 17[/URL. If the bankrupt's council tax is up to date under the instalment agreement at the date of the bankruptcy order, no amount is provable in the bankruptcy as it relates to future occupation of the dwelling. The bankrupt is liable to pay council tax after the date of the bankruptcy order. Where a liability order has been obtained by the council, prior to the bankruptcy order being made, then the whole debt as notified within the liability order becomes due and it is therefore a provable debt as defined in paragraph 40.12.

JCS1

In that case, send the extract fatou has found and see what the council response is. It looks like it was changed November 2008, so not all councils are probably aware.

fiveyearplan

Not all councils act in the same manner either.

fatou256

v ery true fiveyear plan i have some issue with my council ... it seems that they don't even act within their own rule and there is little we can do about it .

debt_doctor

fiveyearplan wrote: »

Not all councils act in the same manner either.

It is required by insolvency legislation. The whole debt for the current year is provable if a final bill or liability order has been issued.

Even more so with water bills, Unless you are on a meter, your entire current year should go in to your BR, action taken or not.

DD

get_me_out

Thank you all for the advise. Will get onto my council now.