I think I’ve really messed up and now have a huge council tax debt

LaurenH22

Me and my boyfriend moved into a private rented house about a year ago. About 2 months after we moved in we still hadn’t received a council tax bill, so I rang our letting agent to see if there was anything I needed to do. She told me they’d informed the council that we had moved in and they would send us a bill when we needed to pay.
I checked online how long it takes to get your first bill and I read that full time students (which I am) are exempt from paying council tax so stupidly assumed that that meant our house was exempt and that was why they’ve never sent us a bill. It’s now a year down the line and I’ve received a household enquiry form for the electoral role and it says in the form that the house is registered as empty?! So now I don’t think the council know we’ve been living here for the past year (although I have been in touch with them regarding other things to do with this address, like ordering a bin etc) and its suddenly dawned on me about the council tax. After reading online I think we should still have been paying the tax although maybe at a reduced rate as I’m in full time education so we only have my boyfriends wage coming in and he’s self employed. I don’t know what to do!
I know I need to get in touch with them and let them know that we do in fact live here and have done for a year, but I’m terrified about how much trouble we’ll be in? Not to mention the fact that we now owe a years worth of council tax and I honestly don’t know how we will pay a debt like that on one small wage! By the time we pay rent, bills and food we don’t have any spare money left over. Ive started looking for a part time job but my physiotherapy degree is extremely full on And i don’t have much spare time. I also have to do unpaid clinical placements as part of the degree which can include 12.5hr shifts and change all the time so it’s hard finding a job flexible enough to work around that.
I’ve read horror stories of people being imprisoned for not paying council tax, I can’t believe how stupid I was to just assume we didn’t have to pay. I wish I’d just rang and spoke to the council myself instead of the letting agent but hindsight is a wonderful thing. Does anyone have any experience with anything like this? How harsh will they be when I tell them? It’s been a genuine mistake but I know they don’t take things like this lightly and am worried sick

bippityboppityboo

First off, well done for being willing to face this and congrats on the physio degree (my dream career!)

I'd recommend calling the council tomorrow and explain everything you have here, exactly as you said it. It's a genuine error, these things happen and you can now solve it. Also, from experience when my husband was exempt during is PhD, you will need something from the university confirming that you're in FTE. Most large unis should have an intranet page to allow you to request something electronically.

In terms of what you're likely to be due. First, find your council tax band. Then confirm what the annual charge was for that band on you local authorities website. You should be liable for 75% of this value.

With that said, I'm not sure how backdating with exemption/discount works. The person you speak to at the council will be able to confirm.

Good luck! x

ludds123

My son realised at the end of a years tenancy as a student that he (nor 5 housemates) had not registered with the council as a student and they received a 'scary' letter for the full amount. It was really simple to rectify this with confirmation from the landlord of tenancy dates plus submission of stùdent id number and uni details and the council backdated the discount to the start of the tenancy. Thought this may help you chill. If you still end up owing an amount for your partner they will be very happy, I'm sure, to arrange a payment plan.

Loulou24

First of all don't panic. Call the council and explain the situation. I'm sure that you will be able to organise a payment plan for the arrears and that you will be entitled to a discount. For the upcoming year of council tax you can also spread the payments out over 12 months rather than the typical 10 months which may also help to balance out costs and to budget ( this what I do for my council tax bill) . Good luck and let us know what they say!

CIS

As above, calling the council is the first step. You'd be surprised how often your sort of situation comes up with the council, I used to see it reasonably regular.

There's nothing to stop any student discount being backdated providing you can show that you meet the eligibility requirements. If you're on a low income and it's too late to claim council tax support retrospectively then I'd suggest a claim for a Section 13A reduction.

Somewhere along the line something has been amiss though, the council won't have sat on the charge and not done anything. Someone will have got a demand notice - either the landlord or the managing agent has been ignoring notifications from the council.

electic

I believe the single person discount is 25% (full time students are disregarded), so your boyfriend will be liable for 75% of the full council tax rate, not 50%.

CIS

electic wrote: »

I believe the single person discount is 25% (full time students are disregarded), so your boyfriend will be liable for 75% of the full council tax rate, not 50%.

The reduction would be 25% unless both parties can be disregarded.

bippityboppityboo

electic wrote: »

I believe the single person discount is 25%.

Eeek, I stand corrected - it is indeed 25% discount. Apologies!