What happens if I don't pay my Council Tax?
What will happen if I do not pay my Council Tax?
If you have problems paying your Council Tax at any stage of the process shown below we will consider making an arrangement with you, but you need to give employment and income details.
We are not legally obliged to make payment arrangements, and only consider them as part of our effort to ensure that all Council Tax payers are treated fairly and objectively.
This approach to collecting the Council Tax enjoys cross party political support in Leicester as we try to increase the amount of Council Tax we collect each year.
We will try to help you if we think you may not be claiming any discount, exemption or Benefits you are entitled to.
To see a flowchart of what happens if Council Tax is not paid, click here.
Bills & Reminders
A bill is sent for the annual charge (1st April – 31st March) and you then have the right to pay by up to a maximum of ten monthly instalments. If you miss a payment we will take action to recover the money.
We will send a reminder notice for any unpaid instalment shortly after it is due. The overdue amount must be paid within seven days.
If the overdue amount is not paid, you will lose the right to pay by instalments after a further seven days. No further reminders will be sent and we will send you a Court summons that includes at least £50 costs that you will need to pay in addition to the charges that are due.
If you bring your account up to date within seven days of the reminder you can still pay by monthly instalments as shown on your bill.
If you fall behind again we will send a second reminder asking you to bring your account up to date. If the overdue amount is not paid, you will lose the right to pay by instalments. No further reminders will be sent and we will send you a Court summons that includes at least £50 costs that you will need to pay in addition to the charges that are due.
If you bring your account up to date within seven days of the second reminder you can still pay by monthly instalments as shown on your bill, but
No more than two reminder notices will be sent in the year.
If you bring your account up to date after the second reminder but do not pay as shown on your bill for the third time, you will be sent a final notice for the year’s charge that is due. If the overdue amount is not paid we will send you a Court summons that includes at least £50 costs that you will need to pay in addition to the outstanding charge.
The Summons & Liability Order
If you are sent a summons you will also have to pay at least £50 summons costs. This is the amount the Court has agreed we can charge you for the time and cost it takes to produce and issue the summons.
We will give you at least fourteen days notice of the Court hearing date. We will take no further action if the outstanding charge and costs are paid before the hearing.
You do not have to go to the Court if you know the Council Tax charge is correct, but you have not paid it. You can go to Court if you do not agree the charge is payable for any of the following reasons:
When the Magistrates agree that the unpaid charge is correct and payable they will grant a liability order against you for non-payment.
We will send you a letter that confirms the liability order has been granted, how much you now owe, and that you now need to give certain financial information within 14 days. It is a criminal offence not to give these details. The letter will also show the bailiff costs you may be charged if we need to ask them to collect the Council Tax for us (see below). If you pay in full within the fourteen days you will avoid the possibility of being charged bailiff costs.
Dependent on the financial information given, our next action will be one of the following enforcement options:
OPTION 1: Attachment of Earnings
We can contact your employer to take money direct from your salary or wages to pay the charge outstanding. The amount taken will be based on how much you earn, and your employer can be fined if they fail to make the deductions.
OPTION 2: Deductions From Income Support / Job Seeker's Allowance (JSA)
We can contact the Department of Works & Pensions (DWP) to take a set amount of money direct from your benefit to pay the charge outstanding.
OPTION 3: Bailiffs
If the first two options are not effective we will ask a bailiff firm to collect the charge for us. From this stage you will need to discuss any payment issues directly with the bailiffs instead of us, but the bailiff will work within a code of conduct we have agreed with them.
You will have to pay more costs if the bailiffs are used, and the amounts are shown on the letter sent to you after the Magistrates granted a liability order against you (see above).
The bailiffs will try to make an arrangement with you to pay the charge outstanding, but if this cannot be done, or you do not pay as agreed the bailiffs can remove goods from your home to sell at auction to raise the funds to pay the charge.
OPTION 4: Insolvency
If the above options are not effective and you owe more than £750.00 we can enter a petition against you to have you declared bankrupt. Your home could be sold if we have to take this action.
OPTION 5: Charging Order
If you have a debt of £1,000 or more and you own your home, we can apply to the County Court to place a charge on your home so you will have to sell it to pay what you owe us.
OPTION 6: Committal Proceedings
We will ask the Magistrates’ Court to summons you to appear at the Court to explain why you have still not paid the charge. If we have to do this you will be charged a further £10.00 costs.
If you do not come to Court a warrant for your arrest (backed with bail) will be issued. You will be charged a further £40.00 costs for the issue of the warrant.
The Court will look at your income and expenditure and order you to make set payments to us. If you fail to pay as ordered you will be arrested and the Magistrates will consider imprisoning you for up to three months.
If you have problems paying your Council Tax at any stage of the process shown below we will consider making an arrangement with you, but you need to give employment and income details.
We are not legally obliged to make payment arrangements, and only consider them as part of our effort to ensure that all Council Tax payers are treated fairly and objectively.
This approach to collecting the Council Tax enjoys cross party political support in Leicester as we try to increase the amount of Council Tax we collect each year.
We will try to help you if we think you may not be claiming any discount, exemption or Benefits you are entitled to.
To see a flowchart of what happens if Council Tax is not paid, click here.
Bills & Reminders
A bill is sent for the annual charge (1st April – 31st March) and you then have the right to pay by up to a maximum of ten monthly instalments. If you miss a payment we will take action to recover the money.
We will send a reminder notice for any unpaid instalment shortly after it is due. The overdue amount must be paid within seven days.
If the overdue amount is not paid, you will lose the right to pay by instalments after a further seven days. No further reminders will be sent and we will send you a Court summons that includes at least £50 costs that you will need to pay in addition to the charges that are due.
If you bring your account up to date within seven days of the reminder you can still pay by monthly instalments as shown on your bill.
If you fall behind again we will send a second reminder asking you to bring your account up to date. If the overdue amount is not paid, you will lose the right to pay by instalments. No further reminders will be sent and we will send you a Court summons that includes at least £50 costs that you will need to pay in addition to the charges that are due.
If you bring your account up to date within seven days of the second reminder you can still pay by monthly instalments as shown on your bill, but
No more than two reminder notices will be sent in the year.
If you bring your account up to date after the second reminder but do not pay as shown on your bill for the third time, you will be sent a final notice for the year’s charge that is due. If the overdue amount is not paid we will send you a Court summons that includes at least £50 costs that you will need to pay in addition to the outstanding charge.
The Summons & Liability Order
If you are sent a summons you will also have to pay at least £50 summons costs. This is the amount the Court has agreed we can charge you for the time and cost it takes to produce and issue the summons.
We will give you at least fourteen days notice of the Court hearing date. We will take no further action if the outstanding charge and costs are paid before the hearing.
You do not have to go to the Court if you know the Council Tax charge is correct, but you have not paid it. You can go to Court if you do not agree the charge is payable for any of the following reasons:
- The property the charge is for is not in the Valuation List that shows all the residential properties in the City. (You do have to pay if you have an appeal outstanding against the Council Tax band for your home that is shown in the List.)
- The Council Tax has not been set correctly.
- The Council Tax bill did not show the correct instalments you needed to pay.
- The charge has been paid.
- Over six years have passed since the Council Tax charge became due.
When the Magistrates agree that the unpaid charge is correct and payable they will grant a liability order against you for non-payment.
We will send you a letter that confirms the liability order has been granted, how much you now owe, and that you now need to give certain financial information within 14 days. It is a criminal offence not to give these details. The letter will also show the bailiff costs you may be charged if we need to ask them to collect the Council Tax for us (see below). If you pay in full within the fourteen days you will avoid the possibility of being charged bailiff costs.
Dependent on the financial information given, our next action will be one of the following enforcement options:
OPTION 1: Attachment of Earnings
We can contact your employer to take money direct from your salary or wages to pay the charge outstanding. The amount taken will be based on how much you earn, and your employer can be fined if they fail to make the deductions.
OPTION 2: Deductions From Income Support / Job Seeker's Allowance (JSA)
We can contact the Department of Works & Pensions (DWP) to take a set amount of money direct from your benefit to pay the charge outstanding.
OPTION 3: Bailiffs
If the first two options are not effective we will ask a bailiff firm to collect the charge for us. From this stage you will need to discuss any payment issues directly with the bailiffs instead of us, but the bailiff will work within a code of conduct we have agreed with them.
You will have to pay more costs if the bailiffs are used, and the amounts are shown on the letter sent to you after the Magistrates granted a liability order against you (see above).
The bailiffs will try to make an arrangement with you to pay the charge outstanding, but if this cannot be done, or you do not pay as agreed the bailiffs can remove goods from your home to sell at auction to raise the funds to pay the charge.
OPTION 4: Insolvency
If the above options are not effective and you owe more than £750.00 we can enter a petition against you to have you declared bankrupt. Your home could be sold if we have to take this action.
OPTION 5: Charging Order
If you have a debt of £1,000 or more and you own your home, we can apply to the County Court to place a charge on your home so you will have to sell it to pay what you owe us.
OPTION 6: Committal Proceedings
We will ask the Magistrates’ Court to summons you to appear at the Court to explain why you have still not paid the charge. If we have to do this you will be charged a further £10.00 costs.
If you do not come to Court a warrant for your arrest (backed with bail) will be issued. You will be charged a further £40.00 costs for the issue of the warrant.
The Court will look at your income and expenditure and order you to make set payments to us. If you fail to pay as ordered you will be arrested and the Magistrates will consider imprisoning you for up to three months.
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