Council Tax - Heellpp pls

jambo10

About 8 weeks back I received a council tax arrears and removal notice from 2 and 3 years ago there was 3 accounts with debt on.

I spoke with the baliff company who advised that if I pay the smallest off in full (still £600!) he would be able to put the other two on hold to give me some time to sort it... I honestly thought i had paid my bills and didnt expect this years on!

Anyway I paid one acct in full and offered to pay £100 per month towards the accounts still remaining and provided a total breakdown of my income and expenditure.

The baliff is actually a nice chap and pleasant enough to speak with and seems to be helpful and understanding of the situation. However .. I cannot say the same for the Council behind it all.

My problem is that the council are saying that I have to pay £270-350 per month as a minimum towards it as they have worked out my income over a 12 month period to be higher than I am stating I can afford per calendar month.

Now I understand that in a 5 week month (because I am a temp) I would get one extra weeks pay so therefore could pay more (which I have offered to do) however it does not mean that my maintenance from my children rises with extra weeks in the month nor does my child benefit etc.

For instance this month is 5 weeks but as there have been bank holidays and i was in hospital for a week (which i have proved) I have not been paid for that time off.

What do I do if they simply wont accept that on a 4 week month I cant pay more but of course if I earn it I will? i also have the issue that I have 3 children 5 and under with another on the way and dont need any more stress on me when I am prepared to pay.

I have explained to both the council and the baliff (again he was understanding) that the only asset that could be levied is my car which would not clear the balance in full and would also mean my twins couldnt get to school 6 miles away nor could I get to work leaving me in a worse situation.

Any advice appreciated ... do they have to accept what I offer seeing as it is reasonable?

CIS

do they have to accept what I offer seeing as it is reasonable?

They don't have to agree a formal payment arrangement with you, the problem is that 'reasonable' differs depending on which side you look at it from.

sistafromanothermista

jambo10 wrote: »

About 8 weeks back I received a council tax arrears and removal notice from 2 and 3 years ago there was 3 accounts with debt on.

I spoke with the baliff company who advised that if I pay the smallest off in full (still £600!) he would be able to put the other two on hold to give me some time to sort it... I honestly thought i had paid my bills and didnt expect this years on!

Anyway I paid one acct in full and offered to pay £100 per month towards the accounts still remaining and provided a total breakdown of my income and expenditure.

The baliff is actually a nice chap and pleasant enough to speak with and seems to be helpful and understanding of the situation. However .. I cannot say the same for the Council behind it all.

My problem is that the council are saying that I have to pay £270-350 per month as a minimum towards it as they have worked out my income over a 12 month period to be higher than I am stating I can afford per calendar month.

Now I understand that in a 5 week month (because I am a temp) I would get one extra weeks pay so therefore could pay more (which I have offered to do) however it does not mean that my maintenance from my children rises with extra weeks in the month nor does my child benefit etc.

For instance this month is 5 weeks but as there have been bank holidays and i was in hospital for a week (which i have proved) I have not been paid for that time off.

What do I do if they simply wont accept that on a 4 week month I cant pay more but of course if I earn it I will? i also have the issue that I have 3 children 5 and under with another on the way and dont need any more stress on me when I am prepared to pay.

I have explained to both the council and the baliff (again he was understanding) that the only asset that could be levied is my car which would not clear the balance in full and would also mean my twins couldnt get to school 6 miles away nor could I get to work leaving me in a worse situation.

Any advice appreciated ... do they have to accept what I offer seeing as it is reasonable?

Hi, ask them for a means test form. Fill this out and request a meeting with someone from the council to discuss. They can't take from you what you haven't got! The government legislation means they can't take it all leaving you nothing to live on!

CIS

The government legislation means they can't take it all leaving you nothing to live on!

There is nothing in legislation to govern the amount the council can ask for - there's no legal requirement for the council to accept any payment arrangement at this stage other than full payment (payment arrangements aren't even mentioned in legislation).

HappyMJ

and now looking at it from my side...... No judge in any court will commit you to prison for offering a fair and reasonable amount to the council for your arrears. If the council steadfastly refuses your payment and the offer is fair and reasonable you will not be committed to prison and is highly likely the debt will be remitted by the judge. I would recommend offering the same amount as the council is entitled to take through an attachment of earnings order which varies from 0% on earnings up to £75 per week and up to 17% of your net income (after tax, NI and pension) on income between £355 and £505 a week. If you work full time and are on minimum wage then the rate is 7%. Part time it would most probably be 5%.

Your child benefit and child maintenance although it goes to you is for the child and is excluded from your income. The only income that counts is your own personal income such as income support, job seekers allowance or your wages. Even working tax credit is excluded.

CIS

Your child benefit and child maintenance although it goes to you is for the child and is excluded from your income. The only income that counts is your own personal income such as income support, job seekers allowance or your wages. Even working tax credit is excluded.

There's nothing to stop the council from counting tax credits etc as income when making payment arrangements.

HappyMJ

CIS wrote: »

There's nothing to stop the council from counting tax credits etc as income when making payment arrangements.

The council might count it but the court in a commital hearing will allow expenses such as extra groceries and clothing equal to the tax credits to offset it so it makes no difference. You already know I pay nothing towards council tax arrears despite working full time and claiming tax credits and the council does nothing. My payments towords court fines are £10 per month due to my low income and that just took some fairly hard negotiation with the court to get the payment so low to avoid commital.

CIS

The council might count it but the court in a commital hearing will allow expenses such as extra groceries and clothing equal to the tax credits to offset it so it makes no difference

Its nowhere committal yet.

HappyMJ

CIS wrote: »

Its nowhere committal yet.

It's with the bailiff who have admitted they can't take anything as the only available asset will not clear the debt so the debt if unpaid will return to council for further enforcement. The council are insisting that a large unaffordable payment is made and the threat is committal if it is unpaid. Even if an attachment of earnings order is given the payroll officer of the OP's employer can only deduct the percentages given. They cannot deduct any more than that if other income exists. The council cannot deduct any money from HMRC payments such as tax credits and child benefit. So the only real threat remaining is committal if the debt goes unpaid and that won't happen as the OP is offering a fair and reasonable amount which is being refused by the council.

doobiesis_2

How much do you actually owe? seems a lot from what you're saying

simon_mdp

Hi,

Council's are almost always hard on financial statements and they will push for more than you can afford especially once it's gone to bailiffs.

The usual response is at that stage is to direct you to the bailiffs anyway, so you very lucky you've got a reasonable one - for now.

In short, you're unlikely to get an affordable deal with either the bailiffs of the Council.

Consider taking matters into you own hands and look at a Debt Relief Order or an Administration Order to legally write off or at least severely restrict the CT debt - especially if you have other debts.

Best Regards