Council tax enforcement
A local authority can take steps to enforce a council tax debt using enforcement agents, attachment of earnings, a charging order, bankruptcy, or committal to prison.
Methods of council tax enforcement
A liability order allows a local authority to enforce unpaid council tax using methods set out in regulations.[1] The local authority can:
obtain information about the taxpayer's financial circumstances
make an attachment of earnings order to deduct sums from wages
make deductions from welfare benefits
instruct enforcement agents
apply to court for a charging order
apply to court to make the taxpayer bankrupt
In England, the local authority can also begin proceedings to commit the taxpayer to prison.
Multiple enforcement methods
Local authorities can only use one method of enforcement at a time for each liability order. [2]
Enforcement of joint liabilities
Where a taxpayer is jointly liable for council tax, a local authority can only pursue one party at a time.[3]
Taxpayer duty to supply information
A liability order gives a local authority the power to demand information from the taxpayer regarding:[4]
their employment
their earnings, or expected earnings
sources of income other than employment
details of any existing Attachment of Earnings Order
details of whether there is anyone who is jointly liable for the council tax under the liability order
The local authority must issue a notice to request this information. Once the notice is issued the taxpayer must comply within 14 days.[5] The taxpayer can inform the local authority if they do not possess the requested information.
The taxpayer's failure to comply with this duty without reasonable excuse is a criminal offence. Providing false information is also a criminal offence.[6]
Attachment of earnings order
An attachment of earnings order instructs the taxpayer's employer to deduct sums from their earnings and to pay the deducted sums to the local authority.
The order is made by the local authority and sent to the taxpayer's employer.[7]
The employer can deduct £1 per transaction for each attachment of earnings order to cover their administration costs.[8]
The local authority cannot have more than two attachments of earnings orders on a taxpayer's earnings at the same time.[9]
The sums that can be deducted from the taxpayer’s earnings are set out in schedule 4 to the regulations.[10]
A local authority can agree to a lower deduction rate than the statutory rate.
What counts as earnings
Earnings include wages and salary, and also any fees, bonuses, commissions, and overtime pay. Earnings also include statutory sick pay.[11]
Earnings do not include:[12]
social security benefits, including Universal Credit and tax credits
allowances payable for disablement or disability
sums payable by any public department of the Government of Northern Ireland
sums payable by any public department of a territory outside the United Kingdom
pay or allowances payable as a member of armed forces
Earnings do not include wages payable to a seaman apart from a seaman of a fishing boat.
How long the order is in force
The attachment of earnings order remains in force until the:
full amount of council tax has been paid
local authority cancels the order
employment comes to an end
Taxpayer's duties under the order
The taxpayer must notify the local authority in writing if they leave employment, or become employed or re-employed whilst the attachment of earnings order is in place.[13] This notification must be in writing and delivered within 14 days of the taxpayer leaving or commencing employment.
Where the taxpayer becomes employed or re-employed the written notice must state: [14]
the earnings, or expected earnings, from employment
the name and address of the employer
any work or identifying details such as an employee number or identity number
The notice must also provide estimated sums for:
income tax
Class 1 national insurance contributions
contributions towards a pension scheme
The taxpayer's failure to comply with this duty without reasonable excuse is a criminal offence. Providing false information is also a criminal offence.[15]
Deductions from welfare benefits
The local authority can apply to the DWP to deduct sums from the following welfare benefits:[16]
Universal Credit
Income Support
Jobseekers Allowance
Employment and Support Allowance
Pension Credit
The DWP notifies the taxpayer of the decision to make deductions within 14 days.[17]
Maximum deduction rates
The maximum that can be deducted from a taxpayer in receipt of means-tested benefit is 5 percent of the standard allowance or personal allowance.[18]
The maximum that can be deducted from a taxpayer in receipt of contributions-based benefits is 40 percent of the standard allowance.[19]
Application for a second deduction
Deductions from welfare benefits can only be made in respect of one application at a time. The DWP cannot approve a second application for a deduction until the first one is paid in full. [20]
When the deductions stop
Deductions continue until:[21]
the entitlement to benefit comes to an end
the local authority withdraws the application
the council tax has been paid in full
the council tax has been discharged
The DWP must provide a written statement of the total sums deducted once the deduction is terminated. The taxpayer can request written confirmation of the total sums deducted.[22]
Find out more about deductions from benefits on Deductions from universal credit for debts on Shelter Legal.
Enforcement agents taking control of goods
The local authority can instruct enforcement agents, also known as bailiffs, to collect the debt.
The local authority does not need a warrant from the court court to instruct enforcement agents.[23]
Enforcement agents can take control of goods. They can secure the debt and seize goods to sell.
Notice of enforcement
Enforcement agents must give the taxpayer written notice before they can take control of goods.[24] This is called a notice of enforcement.
Following a notice, the enforcement agents cannot take control of goods until 7 clear days have passed.[25] Sundays and bank holidays are not included in the 7 clear days. [26]
Ways of taking control
The enforcement agent can take control of goods by:[27]
securing the goods on the premises where they are found such as locking them in a cupboard
securing vehicles found on the highway
removing the goods and securing them elsewhere
entering into a controlled goods agreement with the taxpayer
Controlled goods agreement
A controlled goods agreement is an arrangement between the taxpayer and enforcement agent which allows the taxpayer to retain the goods provided they maintain an agreed payment arrangement. The taxpayer must not dispose of the controlled goods before the debt and enforcement agent's fees are paid.
To be valid and enforceable, the controlled goods agreement must be in writing, signed by both parties and a copy given to the person who signed the agreement.[28]
Charging order on the taxpayer's property
The local authority can apply to the County Court for a charging order on a property that is owned, or jointly owned, by the taxpayer. The local authority can only do this where at least £1,000 is outstanding.[29]
The charging order can only be made against the dwelling where the tax is due. A charging order cannot be secured against any other properties owned by the taxpayer.[30]
In deciding whether to make a charging order, the court must consider the taxpayer's circumstances and whether any other person would be, or would likely be, unduly prejudiced.[31]
If the council tax remains unpaid the local authority can apply to court for an order for sale.
Find out more about charging order applications on Shelter Legal.
Local authority bankruptcy petition
A local authority can petition a court to make the taxpayer bankrupt.[32] The outstanding sum must be at least £5000. This is called a creditor’s bankruptcy petition.
The local authority can either serve a statutory demand on the taxpayer or rely on its liability order.
Statutory Demand
The local authority can serve a statutory demand upon the taxpayer. A statutory demand is a document demanding that the taxpayer either pays the debt in full or offers to secure the debt on their property.
The local authority issues a statutory demand. While there is no set form it must include:
a heading that clearly states the document is a statutory demand
the balance of the debt outstanding
the date by which the taxpayer must comply with the demand
The taxpayer has 21 days to comply with the demand, or 18 days to apply to court to set it aside.[33]
Liability order process
A local authority can petition for bankruptcy where all other forms of enforcement have been exhausted.[34] Under this route there is no need to serve a statutory demand before commencing bankruptcy proceedings.
Bankruptcy must serve a useful purpose
The High Court held that a local authority must assess whether making the taxpayer bankrupt would serve some useful purpose.[35] The court can dismiss or stay bankruptcy proceedings where the local authority has failed to comply.[36]
Committal to prison
In England, a local authority can apply to the magistrates’ court for a warrant to commit a taxpayer to be imprisoned for failing to pay council tax.
A local authority can only request a warrant of committal following unsuccessful attempts to recover the debt by enforcement agents. The agents must have reported that there are either no goods or insufficient goods to enforce payment of the council tax arrears.[37]
If there has been no attempt seize goods, then the option of imprisonment is not available to a local authority.
The European Court of Human Rights held that to commit an unrepresented taxpayer to prison contravenes the Convention on Human Rights.[38] A taxpayer facing committal to prison should seek legal advice.
In Wales a local authority cannot apply for a warrant of committal to imprison a taxpayer for council tax arrears.[39]
Means enquiry
The magistrates’ court must hold a means enquiry before it commits someone to prison for non payment of council tax. The taxpayer must be present at the means enquiry.
To enable an enquiry, the taxpayer is summoned to appear before a magistrates' court.[40]
The means enquiry involves the court questioning the taxpayer's financial circumstances. The court will enquire about the taxpayer's income, outgoings, other debts and savings. The court will consider whether the local authority has attempted to use other enforcement methods.
Wilful refusal or culpable neglect
A warrant to commit a taxpayer to prison can only been issued if the court is satisfied beyond reasonable doubt that the taxpayer’s failure to pay their council tax is due to either wilful refusal or culpable neglect.[41]
Wilful refusal means the taxpayer deliberately chose not to pay even though they could afford it.
Culpable neglect means the taxpayer spent their available income on non-essential items rather than on debts.
The court considers whether the taxpayer has the means to pay the debt on the day of the court hearing.[42]
If the taxpayer has multiple liability orders, the magistrates’ court must decide for each order.[43]
The court can also add costs reasonably incurred.[44]
The court can fix a term of imprisonment but postpone the date for committal on payment terms.[45] Where the taxpayer fails to maintain payments, the court must enquire about the reason for the failure to pay before a further warrant is issued.[46]
Remission of the debt
As an alternative to imprisonment, the court can remit all or part of the council tax debt to which the application relates.[47]
The court should consider remitting part or all sums due before imposing a term of imprisonment.[48]
Once a term of imprisonment is set, the court no longer has the power to remit.[49]
Imprisonment
The maximum period a taxpayer can be imprisoned for non-payment of council tax is 3 months. If the council tax debt plus costs is paid sooner the taxpayer must be released.[50]
Once the taxpayer has been imprisoned, the local authority cannot take any further action to recover the council tax debt.[51]
The local authority must not take enforcement action against a joint taxpayer if one taxpayer is committed to prison.
Challenging a decision
A taxpayer can appeal a decision to commit them to prison within 21 days of the order being made.
Alternatively, a taxpayer can challenge the decision by judicial review within 3 months.[52]
Last updated: 28 February 2025