Council Tax Problem - Court Case

amz84uk

I have a council tax problem which dates back several years of unpaid tax. When the Poll Tax was replaced with Council Tax, I had filled in the necessary forms with the assistance of my Local Neighbourhood Centre, who also validated the forms. The form asked for the oldest family member living at the residence (my mother), and for this reason - we were exempt from paying Council Tax.

Recently, the Council Tax Officials have realised that although my mother is the oldest family member living at our place, she does not own the property - so are asking for payment now from me - as I own the house, and my mother (now in her 90's) lives with me.

I was questionned under caution by the Tax Inspector to clear this mis-understanding in Nov 07. They have agreed off-the-record that this wasn't made clear in the annual Council Tax letters, as they asked for any changes to the property, etc - and there hadn't been any changes, but they need to recoup all the unpaid bills, which I totally agree with and understand.

The tax going back several years has amounted to approx £10,000 and I have asked for a breakdown of this, aswell as any tax rebate that I may be eligble to - as I was unemployed for a period. They have provided a breakdown, but are not willing to help me with any tax-rebates that I may be eligible to receiving. I am willing to repay the Council Tax, and agreed to pay £200 per month, but the Tax Office has refused to accept my offer. I am currently in heavy debts with the usual mortgage, credit cards, etc and my income just about covers my expenditures. The case has now gone to the Magistrates Court, and I have to appear on 13 Feb.

I would like to know what are my options, and what are the likely outcomes of this case?

All help is greatly appreciated.

alwaysonthego_2

I would go to cab and they may be able to speak to the court on your behalf.

If you are in debt you need to be able to present this to the court. The cab will help you fill out an expenditure sheet that you can take to court. I would ask to be referred on to the debt worker at the cab because it will go in your favour in court. it will prove that you are serious about sorting out your debts.

The court could make an order for money to come out of your wage directly, but do go to the cab

DaisyFlower

Advise the judge you are willing to make payments of £200 a month and see if he accepts - his is unlikely to make you pay the balance in one go and will usually agree to a payment plan. I do think he will make an attachment of earnings though due to the amount and seriousness of the matter.

As for benefits relief, you may not qualify if you didnt apply within the time limits so they are correct not to make deductions for that. You need to look into that yourself and see if it can be backdated. CAB may be able to help you with that.

"They have agreed off-the-record that this wasn't made clear in the annual Council Tax letters" - not sure what you mean by this, I have never seen any information that implies council tax is waived if you have an elderley relative living with you.

a11waysindebt

I have been in a similar situation but for £3,000

I downloaded a budget sheet and took it to my council.


The budget sheet showed I could only afford £10.00 a month whilst they wanted £80.00 in arrears paid every week.

They point blank refused me and send it would go to court,I explained that the same budget sheet would be used in court and the judge could well find in my favor.The agreement then was to pay off £10.00 a month and keep up to date with current payments.

CIS

I have a council tax problem which dates back several years of unpaid tax. When the Poll Tax was replaced with Council Tax, I had filled in the necessary forms with the assistance of my Local Neighbourhood Centre, who also validated the forms. The form asked for the oldest family member living at the residence (my mother), and for this reason - we were exempt from paying Council Tax.

For the purposes of Council Tax you would not be exempt on the basis of you mother beinf in her 70's or 80's (at the time). Council Tax has no age exemptions other than being under 18.

If an exemption was applied, you need to clarify which one it was , otherwise I'm inclined to suspect that the form which was completed was a Council Tax benefit form rather than for Council Tax.

CIS

They point blank refused me and send it would go to court,I explained that the same budget sheet would be used in court and the judge could well find in my favor.The agreement then was to pay off £10.00 a month and keep up to date with current payments.

The Council in your case decided to re-consider and accept an arrangement - they didn't have to.

You where lucky - unless a Court Hearing is held for committal to prison at no stage does a magistrate become involved in the procedure with regards to the ability to pay.

At the Liability Order hearing the magistrate can only rule on your liability for the Council Tax due , not the ability to pay.

After this stage the Council need to have issued it to a bailiff (who returns it un-collected) before they can put you in front of a magistrate for committal - only at this stage can the magistrate rule on ability to pay.

amz84uk

Thanks for all the replies.

a11waysindebt - Were you summoned to the Magistrates Court, and if so, what questions were you asked? I have completed a income/expenditure budget sheet, which shows a shortfall of approx £380 every month - all of which is increasing my credit call bills. I have proof of heavy credit card bills and no savings, which I will be taking to the court.

CIS - Can you clarify whether my case at the Magistrates Court on 13 Feb will result in Prison, or will the outcome be a firm decision on the Council Tax due, followed by another hearing for Ability to Pay? Although I am disputing the total amount due, I am willing to accept this as I don't think I'll be granted any rebate - seeing as it's been over several years.

My main concern is Prison, but am willing to negotiate a repayment plan of £200 per month, and hope that my credit card companies will accept some repayment plan aswell.

Finally, I have equity on my property - does the Council have the power to make me re-mortgage my house?

Thanks again for all your responses.

CIS

CIS - Can you clarify whether my case at the Magistrates Court on 13 Feb will result in Prison, or will the outcome be a firm decision on the Council Tax due, followed by another hearing for Ability to Pay? Although I am disputing the total amount due, I am willing to accept this as I don't think I'll be granted any rebate - seeing as it's been over several years.

What stage your at depends on far the recovery process has proceeded - is the court date on 13 Feb the one shown onyour summons notice ? If so its for the Liability Order hearing.

The process of recovery is this :

Reminder - a reminder is issued for the missed payment

Court Summons - warning that a Liability Order will be requested on the full balance

Liability Order Hearing - to iisue a Liability Order, at this stage the magistrate will only rule on whther you are correctly laible for the Council Tax requested if you wish to dispute it ( They wont rule on any dispute over the balance due).

Post Liability Order - the council will decide whether to make an arrangement, attach your earnings/benefit or send to the bailiff.

Bailiff Return - if the bailiff cannot recove the balance they return the case to the council.

Post Bailiff Return - the council will now have extra legal powers to take a charge on the house, issue a bankruptcy petition or go for committal.

The Council cannot make you re-mortgage to pay your outstanding arrear but once they have the Liability Order they negotiate more readily as they have the legal backup if you default on any arrangement.

silvercar

Finally, I have equity on my property - does the Council have the power to make me re-mortgage my house?

No, because they don't have the power to force a lender to give you the money. It could be that due to someone's circumstances no lender is prepared to give them the money.

They could well have the power, through court, to put a charging order on your house. This would prevent you selling your home without repaying the charging order from the proceeds, but wouldn't force a sale.

DUKE

About 15 years ago I was in council accomodation and working for peanuts. I simply didn't pay my council tax as I didn't have the money to. Eventually I went to sort it out (although I only owed £80), and I agreed to pay back £5 weekly. Unfortunately the stinkers still summoned me to court (I didn't bother attending). I ended up having to pay court costs too. I did go to CAB and the lovely bloke who I saw went absolutely mad and told me that if I'd left it and not agreed to pay, the courts would've probably only taken 50p a week from me, rather than £5. They can't take off you what you haven't got and paying a small amount is better than paying nothing at all. My story is different to yours but hopefully you'll get it sorted soon, but do go to CAB.

CIS

I did go to CAB and the lovely bloke who I saw went absolutely mad and told me that if I'd left it and not agreed to pay, the courts would've probably only taken 50p a week from me, rather than £5. They can't take off you what you haven't got and paying a small amount is better than paying nothing at all

Unfortunately CAB where most likely wrong on that - before it got to a stage where the court decided on payments then it would have had to have gone past the bailiff satge . For all CAB advise people regularly that the council's have to accept an offer they don't advise people first of all it has been have been to a bailiff first and that even then the council can go for bankruptcy instead of committal - if it doesn't go for committal then a magistrate does not get to adjudicate on an offer of payment.