Question about very old council tax debt.

Rw0004

Hi,

first time poster and looking for some council tax debt advice if possible. 

A number of years ago (10+) I’d accrued a large council tax debt spanning 4 years after being largely unable to work due to my little one going through lengthy hospital treatments. Once things got back to normal I set up payment arrangements with the debt collection company and cleared all of the debts (or so I though). I received a letter from my local council last week advising that I owe them for 2010/2011. My initial thought was that it would have been cleared along with the rest as it spanned from 2009-2013. I responded to the letter advising that I’d paid everything with the debt company and that regardless, the debt was over 10 years old so would surely be statute barred. 

They’ve since responded to say that this debt unfortunately wasn’t transferred to the debt company along with the others and they eventually sent it to them in 19/08/2015 and the debt company subsequently sent it back to them a year later (don’t know why as they never contacted me). They go on to say that they’ve sent me numerous letters since them offering payment arrangements, but the letter received last week was the first (I learnt in this ordeal to never mess with council tax so would have responded right away). They’ve then asked me to contact them to clear the debt. 

My first thought is that this is way too old for them to be enforcing, but I don’t know the rules well enough. 

Can anyone offer some advice before I respond to them? 

sourcrates

This is from National Debtline -

Council tax

A council should not go to the magistrates’ court and ask for a liability order for council tax more than six years after the council tax became due. This is under Regulation 34(3) Council Tax (Administration and Enforcement) Regulations 1992.

The cause of action (when the limitation period starts running) for council tax, is when the council first sent a bill to you. Unreasonable delays in sending bills could be grounds for making a complaint to the council and, if unresolved, the Local Government Ombudsman. Contact us for advice.

So it depends on what actions the council have taken, and when.

CIS

Rw0004 said:

Hi,

first time poster and looking for some council tax debt advice if possible. 

A number of years ago (10+) I’d accrued a large council tax debt spanning 4 years after being largely unable to work due to my little one going through lengthy hospital treatments. Once things got back to normal I set up payment arrangements with the debt collection company and cleared all of the debts (or so I though). I received a letter from my local council last week advising that I owe them for 2010/2011. My initial thought was that it would have been cleared along with the rest as it spanned from 2009-2013. I responded to the letter advising that I’d paid everything with the debt company and that regardless, the debt was over 10 years old so would surely be statute barred. 

They’ve since responded to say that this debt unfortunately wasn’t transferred to the debt company along with the others and they eventually sent it to them in 19/08/2015 and the debt company subsequently sent it back to them a year later (don’t know why as they never contacted me). They go on to say that they’ve sent me numerous letters since them offering payment arrangements, but the letter received last week was the first (I learnt in this ordeal to never mess with council tax so would have responded right away). They’ve then asked me to contact them to clear the debt. 

My first thought is that this is way too old for them to be enforcing, but I don’t know the rules well enough. 

Can anyone offer some advice before I respond to them? 

The council are likely correct on this one, based on what you have posted. The Limitation Act doesn't quite work in the way you have outlined, it's more technical in how it works.

The 6 year figure built in to the council tax (administration and enforcement) regs 1992, as a replacement for the Limitation Act provisions, is the length of time a council have to obtain a liability order from the point the money becomes due. The monies only become due once a demand notice has been issued (for various reasons the demand notice may be issued after the fact).

Once a liability order has been granted then it becomes unenforceable after 20yrs in Scotland but in England and Wales it remains due indefinitely.

fatbelly

If you can afford this, it sounds like you will have to pay it. It does sound odd that it was treated differently from years either side but it doesn't really give you any legal argument against liability.

Have they given you a breakdown of the figure for that year or just the bottom line?