Council Tax Refund :- entitlement confirmed and used without authorization

Mersey_2

CIS wrote: »

Council Tax as a liability becomes due in full on day one of the account however the council have to give your statutory right to whatever instalments are required. Very few councils will offer any discount for paying in advance, there may be the odd one but I've never come across them.

I'm sorry, but it simply does not become "due" (in its legal terms in civil matters) on 1st April. That is simply the starting point from which it can be requested.


I respect your experience in council tax matters; but, I think this explains why councils often get this wrong - they often simply misuse the word 'due' in some standard letters. Indeed when CLG Secretary, Eric Pickles pledged to direct councils to stop doing this, along with four other blatant misuses suggesting enforcement when in fact no debt existed at the time of the letters.


Here it is in simple terms (for others as you may realise this):


1. In order for something to be due, it has to be a debt.


2. It cannot be a debt on 1st April, therefore it is not due then.


3. It cannot be pursued in Court on 1st April as it not a debt.


Indeed it's only when a resident falls into arrears - ie owing pro rata - on their monthly payments, that a Council can issue a reminder letter, then, if necessary a Court summons. [Although again, most must be system-generated, as errors appear commonplace. Last year, my local paper found that two were issued to children, one for the sum of £1.15 and 18 to residents who were in fact in credit]


As for discounts for payment of the year ahead's Council Tax "in advance" [this word usage makes the point above also], in my area, four councils offered discounts in 2011 (the most recent figures to hand from the LGO), although one has since ended this. Although at 2.5% it's little surprise that so few residents took advantage of this great offer. Perhaps they should have wasted more £ on adverts: 'Why not pay your Council Tax in advance before you die. You know your Council is worth it.'


I have to say I'm slightly alarmed if council staff believe like you appear to that the monthly payments are a mere nicety. They are not. They are the very proof of credit or arrears and as such whether a debt in fact exists. No Council has ever successfully recovered the year's Council Tax in advance - they simply could not as it not due and as such not a debt.

lincroft1710

Mersey wrote: »

2. It cannot be a debt on 1st April, therefore it is not due then.

Why can it not be a debt on 1st April?

CIS

Legislation requires the council issue a demand notice for the full amount which is due and then provide the same with a provision to allow payment by instalment as per legislation. If the instalment is not made then provision will be lost (allowing for required reminders etc) and it reverts to the whole of the outstanding balance to be paid.

Para 27 of Mohammed v Southwark sets it out nicely

"However, local councils do not collect council tax on a daily basis or (generally) in arrears. They issue demands at the beginning of the financial year for which the tax will fall due, and claim payment on account, based upon an assessment of how much tax the resident will be liable to pay, on the assumption that he will remain in residence for the whole of the financial year. Individuals will usually pay sums on account of their council tax liability by instalments, although they may be allowed to make payment of the whole assessed amount in one lump sum. Whatever form the payment takes, the taxpayer inevitably pays the bulk of the tax in advance and on account of a liability that is expected to accrue in future. That explains why the Council was able to seek a liability order in respect of the whole of the financial year 2005-2006 in June 2005, and why it sought a liability order in August 2006 which included sums in respect of the period from August 2006 to 31st March 2007. A liability order can only be sought in respect of sums which are already payable and remain unpaid in whole or in part."

http://www.bailii.org/ew/cases/EWHC/Admin/2009/311.html