Please help, massive council tax arrears! SCOTLAND

RLH33

You really need to sit down and think hard about this debt and take the good advice offered here into account at the same time.

You say that you owe Council Tax on your existing home going back to 2006 - when did your ex live there and for how long? If he lived there, for example between 2006 and 2009 then he should be liable for 50% of the council tax bill for those 3 years. At £1300 CT per year that would knock nearly £2k off your bill.

In fact it may even be more than £2k as I assume £1300 CT is with your 25% single occupier discount so the bill for those years he lived there would have been full price more so his contribution may be more like £2,700.

mildred1978

pinklipy wrote: »

Mildred 1978,
I am not here to be judged on what goes on with my kids father, I'm sure lots of people on this site have complicated "relationships".

I'm sure they do too. It's why the benefits bill is so inflated

pinklipy wrote: »

After the rental income has been split between my sister and I, the mortgage, factors, insurance paid their is no income left to declare. Also you only have to declare over and above £2500, makes no difference as I don't make anything anyway.

Oh dear. Do you mean no tax returns have been made? Even if you don't profit you have to complete a tax return every year. They can fine you heavily if you don't.

pinklipy wrote: »

I will 100% put all my efforts and ££ to paying this off I am not expecting to live in luxury, all I meant was do they allow you any spare ££ for kids Xmas & birthdays. That's all.

They don't in bankrupcy, so I can't imagine they will here.

pinklipy

I am definatly taking on board all the advice from here and I'm very gratefull for it, thanks everyone.

My bill is broke down in amounts over the years so the year where we lived as a couple 06/07 has a lesser amount on it than the other years so I'm guessing they've already took off his share.

dancingfairy

Right o.k.
Firstly I would check the figures and check you do owe what they say. In England you are both responsible for shared council tax - there is no his and her half - nobody cares too hoots whether one pays the mortgage and the other pays the council tax bill. I'm not sure whether it is the same in Scotland so do check.
Secondly have the payments you've been making been taken into account as that could knock a fair bit off your debt if not already included?
Thirdly in bankruptcy you are allowed a life - there are set allowances for things (certainly in England) - you may be allowed say 200 a month for food - if you choose to only spend 150 or something then obviously you will have 50 pounds a month for emergencies or presents or whatever. Sure it won't give you a life of luxury but it isn't a take everything but the shirt off your back scenario either. Do check how it works in Scotland though.
Fourthly bankruptcy is not a certainty or anything. I would take advice from a Scottish specialist and I would look at making a decent proposal - ie this years council tax plus whatever you can reasonably manage towards the arrears. Obviously the experts in Scotland will tell you what is likely to be acceptable but at the end of the day you will need to wait and see what the outcome of your proposal is before you get in a panic about anything else.
Best of Luck
df

pinklipy

Thank you dancingfairy, I will definatley check that the payments I have been making have been taken into accruing and will also check the year where we were living as a couple. I see what you mean about £ hopefully I will be able to live cheaper than my ins/outs to save for special occasions. I am hopefully going to get an appointment at CAB on mon/tues even if they just help me put my proposal in writing.
Maby I should just offer £400 like he originally said and hope that I can pay it so that I don't have to go any further? Will they ask me for proof that I can pay that amount? Or am i better chancing that they might accept £300-£350?

pinklipy

Also from what I can read and have always thought as long as I am working and already in the PAYE system I dont have to fill out a tax return if I'm making less than £2500?

goodz

Are you getting any benefits that might be due to you? Might be worth checking.

Are you working? If so you might be eligible for working tax credits. Or if not working then, if you’re over 25 years old and, for instance, start an ebay business from home and do more than 30 hours a week then you might be eligible for working tax credits. Might be worth looking into.

I know how you feel. I got done for seven grand council tax, here in England. I had to max out the overdraft, get another loan and max out three credit cards to do it, terrible. But it got the council off my back. Bought me some time. But then I had to pay all that extra interest, what a killer. What a rubbish way of doing it. But I did it. Eventually. So if there’s no other way then maybe do some borrowing, if you can.

Also, while they were harassing and pressuring me I lobbed them a few extra bits here and there. So maybe start doing £150 or £200 if you can. Shows willing. And one time they assumed that the extra had been agreed as the new amount. Then you can say, look, this is killing me. I’m a single mum with another baby nearly due etc. But as you can see I’m taking this seriously and making the effort. I’m doing the best I can. Probably won’t make much or even any difference. But might be worth a try in case it does. Good luck.

pinklipy

Thanks goodz,
Yes I am working and recieving wtc and ctc and I will be going on mat leave in the next few weeks although my "wage" will go down I will be taking my 4 year old out of private nursery so it should equal itself out.
Did you manage to pay off the £7000 in one go or did they offer you any kind of payment plan? Thanks for replying and showing that you too have been through it albeit half of what I owe!
I know this isn't going to go away so really need to get my head together, just would of been easier in jan when I won't be heavily pregnant or spending £ on Santa, heyho. I just have to avoid any court action at all costs but I'm scared of what will happen if I committ to £400 then can't pay.
Should I ask on phone if they'd accept £300? Or all in writing?
Thanks

mildred1978

pinklipy wrote: »

Yes I am working and recieving wtc and ctc

You're claiming as a couple, right?

mildred1978

pinklipy wrote: »

Also from what I can read and have always thought as long as I am working and already in the PAYE system I dont have to fill out a tax return if I'm making less than £2500?

You need to declare the income regardless.

https://forums.moneysavingexpert.com/discussion/2218143

If you are employed, or getting a pension through PAYE, and your taxable income from property is less than £2,500, your tax code can be adjusted to collect the tax that you owe on your property income. All you have to do is to ask your Tax Office to send you form P810 to report your income each year.

Read more: What Everybody Ought To Know About Declaring Rental Income To The Inland Revenue http://www.taxfix.co.uk/forum/articles/what-everybody-ought-to-know-about-declaring-rental-income-to-the-inland-revenue.html#ixzz1eAKVWrSE