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Demand for outstanding Council Tax from 2007 out of nowhere
kissinger
Posts: 60 Forumite
So today, completely out of the blue, I got a letter from Birmingham City Council saying that I owe £600 in Council Tax for a period of around 6 months in 2007 when I was a student and therefore (I assumed) not liable for Council Tax.
I thought this was very strange for a couple of reasons: firstly, because as far as I was concerned I was fully paid-up with regards my Council Tax and, secondly, because I've been in touch with Birmingham City Council, including the Council Tax department, numerous times over the past few years and not once have they mentioned that I had this debt outstanding. More worryingly, the letter says that they have been sending letters to my old address and that because they couldn't reach me the debt was passed onto Equita, their debt collection agency!
This leads me to suspect that I've been caught up in some kind of harebrained revenue-raising scheme cooked up by the Council in light of the de facto cap on Council Tax rises imposed by the government and the massive shortfall in the Council's budget. As I say, during that period I was a full-time student, not working or claiming benefits. The only possible explanation I can think of is that I finished one course and started another in summer 2007 and there might have been a short period between the two in which I wasn't actually taking classes, but my official graduation from the first course wasn't until December of '07, so I don't think that what's wrong. And besides, the Council Tax bill is for a much longer period than that would account for anyway (6 months, when the gap between courses was at most a month or two).
So anyway, what I wanted to ask is:
1) What are the rules regarding Council Tax liability and transitioning from one course of education to another? In my case doing the first course was a necessary prerequisite to doing the second.
2) Should I be worried about the fact that the debt was passed onto Equita? Here I'm mainly worried about possibly having accrued debt collection fees (even though, like I say, the letter I got today, which didn't mention any fees, was the first I had heard of this debt, so it seems a bit unfair for them to have added any additional charges already), the effect on my credit report, and bailiffs showing up at my front door. I did call the Council today and they seemed sympathetic to what I said and mentioned they would ask the collection agency to put a 'hold' on the account while I got the necessary documentation to the Council, and then when I called the collection agency later they said the account had been 'resolved', so I'm assuming the Council has already been in touch with them.
Thanks guys. Any advice at all would be great.
I thought this was very strange for a couple of reasons: firstly, because as far as I was concerned I was fully paid-up with regards my Council Tax and, secondly, because I've been in touch with Birmingham City Council, including the Council Tax department, numerous times over the past few years and not once have they mentioned that I had this debt outstanding. More worryingly, the letter says that they have been sending letters to my old address and that because they couldn't reach me the debt was passed onto Equita, their debt collection agency!
This leads me to suspect that I've been caught up in some kind of harebrained revenue-raising scheme cooked up by the Council in light of the de facto cap on Council Tax rises imposed by the government and the massive shortfall in the Council's budget. As I say, during that period I was a full-time student, not working or claiming benefits. The only possible explanation I can think of is that I finished one course and started another in summer 2007 and there might have been a short period between the two in which I wasn't actually taking classes, but my official graduation from the first course wasn't until December of '07, so I don't think that what's wrong. And besides, the Council Tax bill is for a much longer period than that would account for anyway (6 months, when the gap between courses was at most a month or two).
So anyway, what I wanted to ask is:
1) What are the rules regarding Council Tax liability and transitioning from one course of education to another? In my case doing the first course was a necessary prerequisite to doing the second.
2) Should I be worried about the fact that the debt was passed onto Equita? Here I'm mainly worried about possibly having accrued debt collection fees (even though, like I say, the letter I got today, which didn't mention any fees, was the first I had heard of this debt, so it seems a bit unfair for them to have added any additional charges already), the effect on my credit report, and bailiffs showing up at my front door. I did call the Council today and they seemed sympathetic to what I said and mentioned they would ask the collection agency to put a 'hold' on the account while I got the necessary documentation to the Council, and then when I called the collection agency later they said the account had been 'resolved', so I'm assuming the Council has already been in touch with them.
Thanks guys. Any advice at all would be great.
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Comments
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1) What are the rules regarding Council Tax liability and transitioning from one course of education to another? In my case doing the first course was a necessary prerequisite to doing the second.
You are a student only for the period you were attending a qualifying course of education - any gaps between courses do not count.
They are enforcement agents, not debt collectors. For them to have been instructed the council have already obtained a liability order from the magistrates court - this doesn't shown on your credit record.2) Should I be worried about the fact that the debt was passed onto Equita?
Only the council can tell you any more and what they have done.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.0 -
Did you have a council tax exemption form? My uni provided them and they had an end date on them. i doubt you'd still have this now, but were you provided one and did you give it to the council?
Can you prove your were a student during that time? If so I would get that documentation together and present it to the council0 -
Did you have a council tax exemption form? My uni provided them and they had an end date on them. i doubt you'd still have this now, but were you provided one and did you give it to the council?
Can you prove your were a student during that time? If so I would get that documentation together and present it to the council
It was so long ago that I can't remember, but I would have provided some kind of proof, whether that be the exemption form or something else. I sent them a copy of my graduation certificate so hopefully they will accept that as proof, but if not I will pay for some transcripts with start and end dates.
The thing that annoys me most about this though is that they had numerous opportunities to inform me of this debt over the years, but didn't, and let things get as far as the Magistrates Court.0 -
Im no expert (equally not very good with money) but can they prove this is your debt and also as its over 5 years old and they have not collected it, could this be classed as barred. Hopefully someone with a bit more knowledge will be able to help....Proud to have dealt with our debtsStarting debt 2005 £65.7K.
Current debt ZERO.DEBT FREE0 -
You are a student only for the period you were attending a qualifying course of education - any gaps between courses do not count.
But it seems to me there's a grey area there because when does a course end? When you graduate (which is what I assumed), when you get your final grades, when you take your last exam, or when you take your last class?
Regardless, if there was a period when I shouldn't have been classed as a student I'll gladly pay whatever's owed, but they should have billed me within months, not years of this happening. They are incompetent in my opinion. If they thought I owed them money then why didn't they ask for it on any one of the many occasions I was in contact with them in the intervening period? I still have saved email correspondence in my mailbox from BCC from early 2014 for example.0 -
Im no expert (equally no very good with money) but can they prove this is your debt and also as its over 5 years old and they have not collected it, could this be classed as barred. Hopefully someone with a bit more knowledge will be able to help....
http://www.cleardebt.co.uk/debt-advice/debt-help-guides/out-of-date-debt
Once a liability order is obtained they can chase the debt to your grave. The guidelines are if a council has not obtained a liability order and the council tax account is over 6 years old then the account should be written off except in case of fraud, mistakes and omission by the customer.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
I'm fairly certain July 31st is the academic cut off point for council tax purposes. At least it is with my own local council. And October 1st would be the start date so at least two month's worth of CT would be due between courses.0
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Im no expert (equally not very good with money) but can they prove this is your debt and also as its over 5 years old and they have not collected it, could this be classed as barred. Hopefully someone with a bit more knowledge will be able to help....
They won't bill someone without proof - the onus is then on the person to claim any discount/exemptions or update the council when they cease being liable for the charge.
The liability order is the court's agreement that the person being billed owes the money. Provided this order was granted within 6 years of the bill being issued then the balance remains due until it's paid or otherwise discharged, there is not limitation on it.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.0 -
Feral_Moon wrote: »I'm fairly certain July 31st is the academic cut off point for council tax purposes. At least it is with my own local council. And October 1st would be the start date so at least two month's worth of CT would be due between courses.
Which is fine with me. If they want me to pay for those two months I will do it. I just wish they had asked me for the money before getting the courts and bailiffs involved.
Although I am still left wondering why they're asking about a 6 month period? I also hope they will waive any charges they've applied given their own lateness in billing me and their incompetence in not being able to find me even though I'm a Council Tax payer and have been one for years.0 -
Which is fine with me. If they want me to pay for those two months I will do it. I just wish they had asked me for the money before getting the courts and bailiffs involved.
Although I am still left wondering why they're asking about a 6 month period? I also hope they will waive any charges they've applied given their own lateness in billing me and their incompetence in not being able to find me even though I'm a Council Tax payer and have been one for years.
There isn't an academic cut off date for entitlement to a student exemption for council tax purposes - providing you're on a qualifying course of education.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.0
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