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Council tax court order boss not paid money

My bil had a court order for council tax arrears to be taken out of his wages. This was done for well over a year but his boss who took the money never passed any of it onto the council so council have now started to pursue them again for money they have already paid. The boss has since gone bankrupt opening company up in his sons name. It has also transpired that he didn't pay quite a bit of their tax either. Council say they didn't receive the money so the fact that they paid it is not their problem they just want their money.

Any advice on what they can do next?

Thanks

Comments

  • Jules69B
    Jules69B Posts: 26 Forumite
    Do his payslips show the attachment of earnings being taken out? If so, you need to take all of them to the recovery part of your council who can then see it has been taken out of your wages. The Recovery section of the council will be able to see that you have adheered to the attachment and have to chase the Boss. This happened to my husband recently and the Council threatened his boss with legal action as it is a criminal offence to take the attachment and not pass it onto the council. There is a leaflet given out with your attachment that explains it all.
    Hope that helps
    Jules
    :embarasse
    Big things to sort out but today is the start of recovery and way to a new debt free life.
  • DVardysShadow
    DVardysShadow Posts: 18,949 Forumite
    Take this to the bankruptcy administrators immediately. As an employee, he is a preferred creditor to some extent and it could be argued that as the money was never paid to the council, that his wages were not paid in full. As I said, there are some limits on this, but it is best to get a claim in ASAP and argue later.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • td
    td Posts: 362 Forumite
    Part of the Furniture 100 Posts
    Thank you for your replies and sorry for my late response intried to improve my broadband signal and managed to mess it up completely.

    At the moment they are being made to repay, it is on wage slips but council not interested their line is that they don't have the money and it's not their problem. They are using their legal cover on their car insurance but I will print off your replies as an additional option. It turns out he's not paid employees tax or ni contributions either

    Thanks again

    Td
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The Recovery section of the council will be able to see that you have adheered to the attachment and have to chase the Boss. This happened to my husband recently and the Council threatened his boss with legal action as it is a criminal offence to take the attachment and not pass it onto the council. There is a leaflet given out with your attachment that explains it all.

    I've encountered this several times and the opinion of our legal team was that the council cannot take action regarding the amounts not paid against the employer as the employer is a 3rd party in the matter. Although they collect the money direct from the wages the actual debt is the employees and they are responsible for any balances not paid.

    The regulations require that an employer action the order and they can be fined for non-compliance however any money taken and not paid must be pursued by the employee against the employer.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
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