Two Separate Tax Issues (Council Tax and Income Tax)

Conan1Sett

Hello,

I have recently been summoned to a hearing at the Magistrate's Court to explain why I have underpaid my Council Tax of the year 23/24. I was under the impression that I had in full. The discrepancy could have occurred around when I applied for Council Tax Reduction when I was unemployed. I believe that they miscalculated my Council Tax bill. I plan on requesting that they add the amount to this year's bill and I can continue paying monthly. I underpaid by £96, and they have included a summons cost, so an amount of around £125. Would they add it to the current year's bill if I requested? Or would they stipulate that I must pay the full amount ASAP?

Income Tax as well. I lost my job at a particular company where I was working through an agency. When I found another job, my tax code changed. My tax-free allowance was split with the two employers taken into account. I still have two tax codes, but one is not needed. How do I get onto the correct tax code? I have used my online Income Tax Account on Government Gateway to inform them that I have left the former employer. There was a popup stating that it could take 15 days for the "changes to take effect." Would these changes include my tax code correction?

Any guidance on these matters?

[Deleted User]

On the income tax front - that is what should be done. You could, of course, ring them to expedite matters. Try at 8am sharp. 

Brie

I have never heard of someone being called to Magistrate's Court for a bill of any sort including council tax without having received a few letters in advance.  CT in particular are practically notorious for sending out letter after letter to get things caught up.  Is it possible that you have moved and missed these?  Not sure how that would be possible unless you were not paying this year's as well (which you say you are paying....)  Normally the underpaid amount does just get added to the current bill and the monthly amount recalculated.  

And even if you are subject to the court fine in addition to the outstanding amount of CT you should be able to set up a payment plan particularly if you have a good reason for not being able to pay it all in one lump sum.

Brie

Sorry - to add - have you tried contacting the council to sort the tax out?  it's possible that the summons fine might get dropped if there's no need to actually go to court.  Certainly worth a try.  And you can ask at the same time why they didn't inform you sooner.

lincroft1710

How were you paying your CT? If by DD, you should not have any arrears.


As @Brie said, it would be most unusual if the council had not sent you letter(s) reminding you of the underpayment.

Conan1Sett

Brie said:

I have never heard of someone being called to Magistrate's Court for a bill of any sort including council tax without having received a few letters in advance.  CT in particular are practically notorious for sending out letter after letter to get things caught up.  Is it possible that you have moved and missed these?  Not sure how that would be possible unless you were not paying this year's as well (which you say you are paying....)  Normally the underpaid amount does just get added to the current bill and the monthly amount recalculated.  

And even if you are subject to the court fine in addition to the outstanding amount of CT you should be able to set up a payment plan particularly if you have a good reason for not being able to pay it all in one lump sum.

It doesn't seem to be a reminder of a non-payment as though it was a missed payment or a monthly payment that was short, but rather that it's a backdated sum from the previous tax year because they have made a recalculation based on when I ceased to receive Universal Credit and Council Tax Reduction.

In terms of a court fine. Is this likely? Ballpark figures, what kind of fine would be imposed for a shortfall of £96 when I do actually have a genuine reason that I didn't pay it?

Conan1Sett

lincroft1710 said:

How were you paying your CT? If by DD, you should not have any arrears.


As @Brie said, it would be most unusual if the council had not sent you letter(s) reminding you of the underpayment.

I received a letter informing me that my CTR had been removed. I was sent a new e-bill. Then the summons. That's it.

I use the online portal to manage my CT and before this event it was stating that my CT was up-to-date. Currently, it shows a balance of £35.02 from previous years charges. Seems to be a bit going on so I'm going to contact them in the morning at 8AM. I will get through and resolve it tomorrow and I might save myself a trip to court, God willing. 

Conan1Sett

lincroft1710 said:

How were you paying your CT? If by DD, you should not have any arrears.


As @Brie said, it would be most unusual if the council had not sent you letter(s) reminding you of the underpayment.

I pay manually using the online portal. 

I only received the summons. No reminders. I think that it's a case of being backdated. Perhaps where I am in error is failing to cancel my Universal Credit claim. I work on a somewhat as required basis and my hours of work are inconsistent, week-to-week.

lincroft1710

Conan1Sett said:

lincroft1710 said:

How were you paying your CT? If by DD, you should not have any arrears.


As @Brie said, it would be most unusual if the council had not sent you letter(s) reminding you of the underpayment.

I pay manually using the online portal. 

I only received the summons. No reminders. I think that it's a case of being backdated. Perhaps where I am in error is failing to cancel my Universal Credit claim. I work on a somewhat as required basis and my hours of work are inconsistent, week-to-week.

It's far easier to pay by Direct Debit. If you paid by DD the situation would never have arisen

Brie

lincroft1710 said:

Conan1Sett said:

lincroft1710 said:

How were you paying your CT? If by DD, you should not have any arrears.


As @Brie said, it would be most unusual if the council had not sent you letter(s) reminding you of the underpayment.

I pay manually using the online portal. 

I only received the summons. No reminders. I think that it's a case of being backdated. Perhaps where I am in error is failing to cancel my Universal Credit claim. I work on a somewhat as required basis and my hours of work are inconsistent, week-to-week.

It's far easier to pay by Direct Debit. If you paid by DD the situation would never have arisen

Whilst I agree completely I also know that not everyone can commit to paying by DD so it's normally been a better idea to pay regularly and when you know you have the money in the bank.  Particularly in the situation where income is not consistent.

lincroft1710

Brie said:

lincroft1710 said:

Conan1Sett said:

lincroft1710 said:

How were you paying your CT? If by DD, you should not have any arrears.


As @Brie said, it would be most unusual if the council had not sent you letter(s) reminding you of the underpayment.

I pay manually using the online portal. 

I only received the summons. No reminders. I think that it's a case of being backdated. Perhaps where I am in error is failing to cancel my Universal Credit claim. I work on a somewhat as required basis and my hours of work are inconsistent, week-to-week.

It's far easier to pay by Direct Debit. If you paid by DD the situation would never have arisen

Whilst I agree completely I also know that not everyone can commit to paying by DD so it's normally been a better idea to pay regularly and when you know you have the money in the bank.  Particularly in the situation where income is not consistent.

But unfortunately this has backfired on the OP