Council tax
Recovery Policy
Contents
1.Recovery process up to court action / 3
2. Recovery process after court action / 6
2.1 Request for financial information
2.2 Attachment of earnings
2.3 Deductions from benefits
2.4 Bailiff action
2.5 Insolvency action
2.6 Charging Orders
2.7 Committal proceedings
3.Assistance for customers / 13
4.External specialist service providers / 13
5.Hardship / 14
6.Write offs / 14
7.Gone away (absconders) / 14
8.Costs / 15
APPENDICIES
A –Enforcement team code of conduct / 16
B –Council tax recovery process flowchart / 23
Part 1 – Bill to Liability Order
Part 2 – Liability Order to results
Part 3 – Type of results
1 / Implications of bankruptcy / 27
Definition
In this policy ‘we’ or ‘our’ means Kirklees Council.
IntroductionWe will send you anannual council tax bill in Marcheach year containing a monthly paymentplan.
We offer a number of different payment methods and dates for you to choose from. We promote payment by direct debit, as it is the most efficient payment method. It also helps you to avoid missing instalments and being subjected to recovery action.
If you want to change your instalment date you must contact us. If you make regular payments, but not on or before the instalment date, we will take recovery action against you as your payments are late.
Don’t worry if you have a change in your circumstances which affects how much you have to pay. As soon as you give us all the details we need, we will send you an amended bill with your new instalment plan.
1. Recovery process up to court actionWe have a timetable for recovery action and will send reminders for late instalments on a dailybasis.
No more than three reminders will be issued in a financial year; two instalment reminders and one final reminder.
1st reminderIf you don’t pay an instalment, or you pay it after the due date, we will send you a reminder. The reminder gives you seven days to bring your account up to date.
Your options:
- Pay the amount as instructed
You can continue to pay your bill in monthly instalments.
-Don’t pay the amount within seven days
We will send you a summons (see below).
2nd reminderIf you miss a second instalment, or you pay it after the due date, we will send you another reminder. The reminder gives you seven days to bring your account up to date.
Your options:
- Pay the amount as instructed
You can continue to pay your bill in monthly instalments.
- Don’t pay the amount within seven days
We will send you a summons (see below).
Final noticeIf you miss a third instalment, we will send you a final notice.This means you will have to pay the remaining annual charge in full immediately.
Your options:
- Pay the amount as instructed.
You won’t receive anything else from us until your next bill is due, or until you have a change in your circumstances which will effect the amount you have to pay.
- Don’t pay the amount
We will send you a summons (see below).
SummonsesSummonses for non-payment are issued on a monthly basis.
If you don’t pay as instructed by your reminder, or final notice, we will ask the Magistrates’ Court to send you a summons. The cost of sending the summons is added to your bill.
The summons demands the full amount of council tax for the remainder of the year, plus additional costs, therefore is due to be paid in full immediately.
Your options:
- Pay the full amount of the summons, including costs, before the hearing date
You do not have to attend court. No further action will be taken.
- Make a payment arrangement with us before the hearing.
In this case you do not have to attend court, but we will ask the Magistrates to grant a ‘Liability Order’ to secure the debt (explained below). Costs will be added to your bill for this action.
Providing you keep to the payment arrangement, we will stop further recovery action after you receive a copy of your Liability Order.
If you are unable to pay immediately, and you don’t make an arrangement with us, you should follow the instructions on the summons and attend court to explain why you have not paid your bill.
At courtAt the court hearing, we must satisfy the Magistrates we have followed the correct procedures ie. sending a bill, reminder and summons to your property, or your last known address. We must also confirm you are liable for council tax, and the debt is outstanding.
If the Magistrates are satisfied with the evidence we present they will grant a ‘Liability Order’.
A Liability Order is a decision by the court confirming that you are liable to pay council tax and have not done so in accordance with the law. It gives us powers to recover the outstanding debt using other methods eg. to:
-ask for your financial information,
-take money directly from your wage. This is called an Attachment of Earnings Order.
-take money directly from your benefits eg. Income Support or Job Seekers Allowances
-ask bailiffs to remove your goods and sell them to pay the debt
-start insolvency proceedings
-seek a charging order against your property
-start committal proceedings for your imprisonment for up to 90 days.
Your options:
- Attend the hearing to make an arrangement to pay
Please speak to one of our staff, available in the reception area on the day. In the majority of cases, we will still ask the Magistrates to grant a Liability Order, and include the costs for doing this in your arrangement. You will receive a copy of this order through the post.
If you prefer, you can make an arrangement over the phone at any time before the court hearing. If you make an arrangement there is no need to attend court.
- Attend the hearing to speak to the Magistrates
You will need to register your attendance with our staff who will be in the reception area on the day. Please arrive at least 15 minutes before your hearing time. The Magistrates may not grant a Liability Order if you can provide a valid defence, such as:
- we have not demanded the council tax as the law sets out,
- you have already paid the amount on the summons,
- you are not the person liable for council tax,
- more than 6 years have passed since we sent you a bill for the amount,
- we have already started bankruptcy or winding up proceedings against you.
Please note, it is not a valid defence against non-payment if youare unable to pay,have applied for council tax benefits, or have appealed to the Valuation Office against your council tax valuation band.
- Don’t attend court
Provided the Magistrates are satisfied with our evidence, they will grant a Liability Order in your absence. A copy of this order will be sent to you at your last known address. We will take further action against you to recover the debt. We may have to add costs to your bill for this action.
2. Recovery process after courtOnce we have a Liability Order we will send you a copy which also includes a ‘Means Enquiry form’. This asks you to supply details about your income and expenditure. You have two weeks to complete it and return it to us.
If you don’t complete and return the means enquiry form within two weeks, or provide false information we can take action against you. This may result in a fine of up to £1,000. We could also decide to recover the money in another way.
You still have the option of contacting us to make an arrangement to pay at this point, but you must give us your income and expenditure details as well.
Attachment of earningsWe can ask employers to make deductions directly from your salary or wages, to pay your council tax debt. The Council can issue up to 2 Attachment of Earnings Orders in respect of Council Tax arrears at the same time
We will send you a copy of the order(s) we send to your employer.The amount of the deduction depends on how much you earn.
Table of deductions from monthly earnings for each order issued
Take home(net) wage / Percentage we can deduct / Amount to be deducted (£)
Under £300 / 0% / Nil
Over £300 but under £550 / 3% / 9.00–16.47
Over £550 but under £740 / 5% / 27.50 –36.95
Over £740 but under £900 / 7% / 51.80–62.93
Over £900 but under £1,420 / 12% / 108.00–170.28
Over £1,420 but under £2,020 / 17% / 241.40–343.23
Over £2,020 / 17% of the first £2,020plus 50% of the rest / 343.40
plus 50%of therest
Table of deductions from weekly earnings for each order issued
Take home(net) wage / Percentage we can deduct / Amount to be deducted (£)
Under £75 / 0% / Nil
Over £75 but under £135 / 3% / 2.25–4.02
Over £135 but under £185 / 5% / 6.75–9.20
Over £185 but under £225 / 7% / 12.95–15.68
Over £225 but under £355 / 12% / 27.00–42.48
Over £355 but under £505 / 17% / 60.35–85.68
Over £505 / 17% of the first £505, plus 50% of the rest / 85.85plus 50%of the rest
Your employer can deduct a further £1.00 per order for each time they make a deduction to keep towards their administration costs.
Your employer is responsible for making deductions until the amount of the attachment of earnings order is paid in full, or we instruct them to stop.
You must tell us within two weeks of any changes in your employment.
Your options:
- Pay your debt in full.
Please contact us so we can instruct your employer to stop making deductions.
- Allow deductions to be set up.
Your debt will be paid by deductions from your wage for as long as you continue to work for the same employer.
If you find you can’t afford these deductions, you must give us details of your household’s income and expenditure so we can calculate if it’s possible to reduce the deductions.
Deductions from benefitsWe can ask the Department for Work and Pensions (DWP) to make deductions directly from your Income Support, Jobseekers Allowance, Employment Support Allowance, Universal Credit or certain Pension Credits
Aset amount of money deducted will be sent to us each month and will continue until your council tax is paid in full.
You must tell us within two weeks of any changes in your benefit entitlement.
Your options:
- Pay your debt in full.
Please contact us so we can instruct the DWP to stop making deductions.
- Allow deductions to be set up.
Your debt will be paid by deductions from your benefit for as long as you remain on the same benefit.
Bailiff actionWe can instruct bailiffs to collect the outstanding council tax debt from you if you fail to:
- complete and return the means enquiry form,
- make a suitable payment arrangement, or
- pay as arranged.
Our bailiffs, who visit cases within Kirklees, are certificated through the County Court and abide to a Code of Practice (see Appendix A).We also use external bailiff companies for cases where the visiting address is out of the Kirklees area as well as certain cases within the Kirklees area.
When our bailiff visits you, they will ask you for full payment. They will also ensure you are receiving benefit or discounts you may be entitled to, and will give you advice on all aspects of council tax.
The bailiff can add a set fee to your bill for each time they have to visit you. See section 8 for more details.
Your options:
- Pay in full, including any costs
The bailiff will give you a receipt for your payment.
- Can’t pay in full immediately
The bailiff will normally make a payment arrangement with you. Additional costs may be added to your bill, but provided you pay as arranged, no further action will be taken.
Arrangements can be covered by a ‘walking possession’ agreement. This is where the bailiff records an inventory of your goods that is equal to the amount of your debt.You will be asked to sign the walking possession agreement. Additional fees will be added to your bill for this action but providedyou pay as arranged there will be no further costs.If your goods are subject to a walking possession agreement you cannot dispose of them without the bailiff’s permission.
If you fail to pay as arranged and you have signed a walking possession agreement, the bailiff may re-enter your property, by force if necessary, to take the goods listed on the inventory. You will be charged for the removal and sale of them.
If the bailiff believes that you may intentionally dispose of your goods, they may take ‘close possession’ of them. This means the bailiff will stay with the goods until either full payment is received or the goods are removed to auction.
The bailiff may visit your property with a van to enforce the Liability Order by removing goods. If a van is used, additional costs are added to your bill.
If the bailiff believes there is insufficient goods to clear the debt, or that there is no prospect of peaceful entry to the property, they will send a `Nulla Bona` certificate to us and we will consider alternative recovery options.
Insolvency actionWe may decide to take insolvency action against you for non-payment of your council tax if the debt is more than £5000 and our attempts to attach earnings, deduct from benefits or remove your goods have been unsuccessful.
If we take bankruptcy action, you could lose your home and possessions to pay for your council tax debt.
We will send you a letter warning of bankruptcy proceedings and give you a last chance to make a payment arrangement before bankruptcy action starts. We will also advise you of the implications of bankruptcy.
Your options:
- Make an arrangement to pay.
Provided we accept your arrangement you could avoid further recovery action and costs.
- Don’t make a payment arrangement to pay
We will serve a ‘Statutory Demand’ on you. This is an important document and tells you what to do next. If you are in any doubt about your position you should seek advice immediately from a solicitor or your nearest Citizens Advice Bureau.
If you disagree with the demand, you only have 18 days to apply to the court to have it ‘set aside’, and only 21 days before we may present a bankruptcy petition.
If you do not make a payment arrangement after the service of a Statutory Demand, or if your case is not set aside, we will send you a bankruptcy petition.
The council’s legal department will be instructed to issue bankruptcy petitions on our behalf. Costs will be incurred if a petition is requested. At the County Court hearing we will ask these costs to be passed onto you.
Charging OrdersCharging orders are used when attempts to attach earnings, deduct from benefits and remove your goods have been unsuccessful.
If you own your property and your debt is more than £1000 we may decide to apply for a charging orderto be placed on the land charges register. This is similar to a mortgage and means we can recover your outstanding council tax debt from the proceeds of sale, should you sell your the property at a later date.
We can enforce the sale of a property subject to a charging order, to recover monies owed if a repayment offer is not made. However, this would be the exception rather than the rule.
Committal proceedingsCommittal action is a last resort and we encourage you to contact us immediately if you are having difficulties paying your bill.
If the bailiffs have been unable to remove goods to pay for your debt, and we think other recovery options are inappropriate, we can ask the Magistrates’ Court to send you a summons to attend a committal hearing.
This means we will ask the court to decide whether to send you to prison for not paying your council tax.
At the hearing, our representative will confirm to the Magistrates that a Liability Order has been granted, and that the bailiffs have been unsuccessful in removing your goods.
The Magistrates will then ask you why you have not paid your council tax bill and will decide whether you have deliberately refused to pay or had the means to pay your Council Tax but haven’t done so. This is known as ‘wilful refusal’ or ‘culpable neglect’. They will also ask whether you can make an offer of repayment.
If you cannot make a repayment offer, a court official will ask you questions about your income and expenditure. This is called a ‘means enquiry’. It helps the court decide whether you are able to pay and, if so, what you could afford to pay as an arrangement.
The Magistrates and our representative will ask you questions. You will also have the chance to ask us questions.
The Magistrates then leave the courtroom to make their decision.
There are a few decisions the Magistrates can make:
1. Court order with suspended sentence
You will be ordered to pay a set amount, for example £80 a month, and told that if you do not keep up the payments, you will go to prison for a set amount of time (up to 90 days).