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Council Tax - selling house

Hi

First of all I have been stupid and forgot about a couple of letters about owing for this year's council tax, partly as I have been complacent due to my house being on the market for 6 months (of which I informed the council back in December and paid up last year's tax despite not living there).

Now I have received a magistrates summons to pay this year's full amount. Its made me very nervous and feeling stupid.

My question is, while I will be calling the council first thing Monday to sort out, am I still likely to be in a position to negotiate a deal to pay what I owe this year so far and then monthly payments given my house is sold subject to contract (I could send them some proof), rather than the full amount? I want to preempt their likely stubbornness to pay the full amount.

Thank you
Steve
«1

Comments

  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    They will probably want the lot whatever you say - you're not "in desperate straits" and poor and renting .... so they "expect to squeeze you until the pips appear".

    The deal is: Here's your bill, you can pay it in installments if you wish ...but the minute you're late with ONE you OWE THE LOT.

    "Computer Says No" is what I bet you'll be up against.

    Go and see what they say, but be prepared for them to be an immovable mountain.
  • Stkp61
    Stkp61 Posts: 4 Newbie
    Thanks.
    What if they do ask for the lot and then the new buyer moves in, in July? Presumably I would get a refund from July onwards?
  • Stkp61
    Stkp61 Posts: 4 Newbie
    Also if I went to court hearing (not ideal) and showed them I have a buyer, would they perhaps refuse the courts application for liability order?
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 19 May 2018 at 4:51PM
    Stkp61 wrote: »
    Also if I went to court hearing (not ideal) and showed them I have a buyer, would they perhaps refuse the courts application for liability order?

    They could not refuse the application - until such time as the council tax account is actually updated the last council tax demand notice issued is regarded as being correct.
    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.
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Stkp61 wrote: »
    Hi

    First of all I have been stupid and forgot about a couple of letters about owing for this year's council tax, partly as I have been complacent due to my house being on the market for 6 months (of which I informed the council back in December and paid up last year's tax despite not living there).

    Now I have received a magistrates summons to pay this year's full amount. Its made me very nervous and feeling stupid.

    My question is, while I will be calling the council first thing Monday to sort out, am I still likely to be in a position to negotiate a deal to pay what I owe this year so far and then monthly payments given my house is sold subject to contract (I could send them some proof), rather than the full amount? I want to preempt their likely stubbornness to pay the full amount.

    Thank you
    Steve

    Strictly speaking you are required to continue paying as per the last demand notice which was issued, any council tax due from this is to be paid to until you are instructed otherwise. Whether or not the council will agree that the summons will be withdrawn is up to them, they don't have to withdraw it and can continue ahead with enforcing it as provided for by legislation.

    They will very likely ask why you didn't contact them when the reminder notice was issued to discuss the issue at that point.

    Obviously, once it does sell the council tax will be recalculated at that point and you will be issued with a revised demand notice - any overpayment at that stage would be repaid.
    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.
  • John_Jones
    John_Jones Posts: 208 Forumite
    Stkp61 wrote: »
    Hi

    First of all I have been stupid and forgot about a couple of letters about owing for this year's council tax, partly as I have been complacent due to my house being on the market for 6 months (of which I informed the council back in December and paid up last year's tax despite not living there).

    Now I have received a magistrates summons to pay this year's full amount. Its made me very nervous and feeling stupid.

    My question is, while I will be calling the council first thing Monday to sort out, am I still likely to be in a position to negotiate a deal to pay what I owe this year so far and then monthly payments given my house is sold subject to contract (I could send them some proof), rather than the full amount? I want to preempt their likely stubbornness to pay the full amount.

    Thank you
    Steve
    It is not really stubbornness, you owe the full amount now, and council tax is a debt that can result in a prison sentence if not paid.

    Is there no way that you can raise enough to pay on Monday?
  • fatbelly
    fatbelly Posts: 23,739 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    There seem to be two options:

    1. You pay in full now, get them to abandon the court process, and get a refund when your sale completes.

    2. You let it go to liability order then immediately contact the council for a payment plan. This would save you parting with a lump sum and should avoid bailiffs but would leave you liable for the court and liability order costs which, with my council, is a total of £80.
  • sourcrates
    sourcrates Posts: 32,538 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    John_Jones wrote: »
    It is not really stubbornness, you owe the full amount now, and council tax is a debt that can result in a prison sentence if not paid.

    Is there no way that you can raise enough to pay on Monday?


    The OP is not refusing to pay, just trying to whey up the best option for there circumstances.


    No one wants to pay more than they should, even if it will be refunded at a later date.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • John_Jones
    John_Jones Posts: 208 Forumite
    sourcrates wrote: »
    The OP is not refusing to pay, just trying to whey up the best option for there circumstances.

    No one wants to pay more than they should, even if it will be refunded at a later date.
    It does not matter what they want, that is not how council Tax works. You lose your right to pay in instalments once you are in arrears.
  • sourcrates
    sourcrates Posts: 32,538 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    John_Jones wrote: »
    It does not matter what they want, that is not how council Tax works. You lose your right to pay in instalments once you are in arrears.


    Fully aware of that, but deals can still be struck, the council has complete discretion as to how it deals with council tax and its collection.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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