Non payment of council tax: Questions.

SpikeyKitten

Hi,

First off, apologies if this is in the wrong section.

Times are tough for me financially and it's looking like I won't be able to afford my council tax going forward. I can barely make my rent and basics. And as a single person living in low-value social housing, the ever-increasing council tax is unfair and unsustainable.

I'm self-employed and income is sporadic. And being self-employed I'm not eligible for benefits due to an assumption that I earn more than I do. But I tick along. It's sad that work no longer pays. I would be much better off on benefits, but I'm not eligible and I actually enjoy working so not an option unless forced to.

So I have two questions regarding non-payment. The first is regarding bailiffs and my work van (which also contains my materials and tools). I know the law about bailiffs regarding entering your property etc. Just don't let them in. And to be honest, even if they did get in. I have nothing of value, (typing this on an easily-replaced twelve year old cheap laptop!). And as I live in an upper floor flat with no lift, then I'm guessing they'll not be wanting to remove my washing machine etc 😅

But can they take my work van? That would put me on the streets as I wouldn't be able to earn my rent. I read somewhere that work vans are exempt. But I'm worried it's a case of they'll still take it, then it's up to you to fight for it back. By which time I'll be bankrupt. For clarity it's a twenty year old van which I own, valued at £800.

The second question is regarding prison. I see that the maximum sentence is three months. So would that be three months of every year? (three months per yearly unpaid bill?) So I'd need to find a way of paying rent whilst in prison? And what happens if you still can't pay once you've been released? Straight back for another three months?

Statute of limitations: If you couldn't afford to pay council tax, would the debt be unenforceable after six years like other debts? So, assuming you couldn't afford to pay it for the rest of your life, the debt would kind of 'reset' with every new year if that makes sense? Maxing out at the six years sum that is enforcable. Not that it makes much difference, £10k or £100k, I still can't afford to pay. But say for example, I won the lottery in twenty years, would the amount to be paid be the last six years, or the full twenty?

I have mental health issues that I struggle with (privately), so I could in theory give up work in order to claim benefits and thus be exempt from rent and council tax. But this would have to be an absolutely last resort. I enjoy working and have worked hard to build up a business from nothing with the cards I've been dealt. And it actually helps with my mood and self-respect, even if I'm not as effective at earning as I'd ideally like due to my 'issues'.

Any info gratefully taken on board. Thanks.

Gandalf644

https://forums.moneysavingexpert.com/discussion/6657187/non-payment-of-council-tax-questions

Have you spoken to your local council?

Council Tax Reduction schemes do vary from council to council areas, however your council can do a check to see if you are entitled to any 'Council Tax Reduction' on low income grounds (you don't have to be on benefits to do this).

It is worth giving it a try. You may find out you do not have to pay full council tax anyway.

sourcrates

Its not a good idea to be taking the sort of action you are considering taking.

Yes the bailiffs can take your van, and you would then have to provide reasons for them not to sell it.

CT is not subject to the limitation act, but it is subject to the:

Council Tax (Administration and Enforcement) Regulations 1992

The council have six years to apply for a liability order, and they are usually much more on the ball than that, so its unlikely to reach the 6 year limit before enforcement action will be taken.

Each new financial year you are liable creates a new debt, you could end up owing a lot of money, prison is a last resort, and not something to be welcomed.

It may be unfair and unjust, but its the law of the land and if you simply don`t pay it, you will have the full force of the law descend upon you, l would urge you to re-think your strategy on this one.

RAS

One of the more difficult things about Council Tax is that by law it has to be paid in full in April. This Council rescinds the option of paying by instalments if you fall two months behind and will go for a liability order around month 3.

That increases the amount you owe and bailiffs and their fees come close behind. Go into the next year in debt and that's another liability order and set of bailiff fees. It's very difficult to get out of the spiralling debt.

You need to talk to a debt advisor and to a benefits advisor local to your area. With CT the exact rules are made locally.

CliveOfIndia

"And being self-employed I'm not eligible for benefits due to an assumption that I earn more than I do"

Surely you must have accounts or tax returns that prove how much you earn, even if it's variable? I'm not sure why they're making assumptions about your income, it should be simple enough to prove.

"as a single person living in low-value social housing"

Are you getting the single-person discount? Admittedly it's not a huge amount in the grand scheme of things, but every little helps.

ManyWays

@cliveofindia after a year of being self employed, the DWP expects people to be making more in profit that the "minimum income floor", see https://www.gov.uk/government/publications/universal-credit-and-self-employment-quick-guide/universal-credit-and-self-employment-quick-guide

RAS

The OP may be referring to the Minimum Income Floor, which is around 35 hours at minimum wage. If they report a self employment income below that, they can be assessed as if they have earned the minimum income.

AIUI this rather depends on which work group and whether the OP is considered in gainful self employment.

fatbelly

Yes I think the OP is worrying about the Minimum Income Floor, which was introduced into Universal Credit to give a minimum level of earnings expected if someone is self employed.

When UC was introduced, one benefit that was not brought into it was Council Tax Support. Instead, each council had to come up with their own plan, given the government's framework that the overall funding of the scheme must drop 10% and you can only apply your new scheme to working age people.

Hence, councils where there were a high percentage of retired people, like Cornwall or Torbay, had to devise harsh schemes to balance their books.

When the concept of MIF was introduced for self-employed people, some councils happily adopted it into their scheme, some delayed introducing it and some never have done.

So unless you ask, you won't know.

There are also hardship payments -again these differ from council to council, and Section 13A writeoffs. I think it better to explore these options rather than think about how to deal with bailiffs and jail time.

SpikeyKitten

https://forums.moneysavingexpert.com/discussion/comment/81902129#Comment_81902129

Hi,

Yes I've spoken to them previously. They said that I need to be claiming Universal Credit in order to even qualify for any help. I can't claim UC due to the assumed minimum income floor. So I'm kind of trapped.

SpikeyKitten

https://forums.moneysavingexpert.com/discussion/comment/81902265#Comment_81902265

Hi,

Yes, it's about the 'assumed minimum income floor' with UC for self-employed people. They just assume you're earning full-time money then say: you're not eligible for help because we say that you earn too much.

Yes, I do get the single occupier discount of 25%. Such as it is.

fatbelly

Op - I don't think that can be true. There shouldn't be a requirement to claim UC in order to claim CTS. They are two separate benefits. Have a look on their website. Also put your figures into

https://benefits-calculator.turn2us.org.uk/