Council tax arrears and the liability order: what happens and how to stop it

Council tax arrears can escalate quickly. What starts as a missed payment becomes a magistrates' court hearing, then a liability order, then enforcement options like bailiffs or attachment of your wages. This guide walks you through each stage, what you can do at every point, and how to defend yourself or settle before it goes to court.

The short version

If you do not pay your council tax on time, the council will first send a reminder. If you ignore that, they send a final notice, which means you lose the right to pay in monthly instalments. If you still do not pay, they apply to the magistrates' court for a liability order. At the hearing, you can argue defences (for example, that you are not the liable person, or that your band is wrong). If the court makes the order, the council can then use enforcement methods: bailiffs, attachment of your earnings, deductions from benefits, or a charging order on your property. You can challenge a liability order even after it is made. Council tax reduction can cut what you owe. The process takes weeks to months, not days, so there are several points where you can intervene.

At a glance

Stage 1: First reminder

When you fall behind on council tax, the council sends a reminder notice. This is your first formal warning.

What it says: The notice tells you how much you owe, the deadline for payment (usually 7 days), and warns you that if you do not pay, the council will demand payment of the full year's balance. It also tells you how to pay and where to contact the council if you cannot pay.

What you should do: Pay the amount immediately if you can. If you cannot, contact the council and ask to set up a payment plan. The council has discretion to accept a plan instead of pursuing court action. Tell them about your circumstances: job loss, illness, unexpected expense, childcare costs. Many councils will freeze enforcement if you show willing to pay.

What happens if you ignore it: After 7 days without payment or contact, the council moves to the next stage.

Stage 2: Final notice (loss of right to pay in instalments)

The council now sends a final notice. This is a formal step towards court.

What it says: The final notice demands payment of the full year's council tax (or the balance for the current financial year), not just the amount you have missed. It tells you that you have lost the right to pay by monthly instalments unless the council agrees otherwise. The notice gives you a deadline (usually 7 days) and warns you that if you do not pay, the council will take proceedings in the magistrates' court.

Why it matters: After this stage, you cannot simply pay the arrears in monthly chunks. The council will demand the full balance in one lump sum, or it will go to court.

What you should do: Pay the full amount if you possibly can. If you cannot, contact the council immediately and ask for a payment plan. Explain your circumstances in detail. Request a time to pay order (a formal court order allowing you to pay by instalments) as an alternative to court proceedings. Some councils will issue one before court; some will only do so at court. A time to pay order stops the council from moving to the next stage.

What happens if you ignore it: The council will apply to the magistrates' court for a liability order.

Stage 3: Magistrates' court summons

The council has applied to the magistrates' court and the court issues a summons for you.

What it says: The summons is a court document telling you when and where to attend the magistrates' court. It will name the council as the prosecutor and you as the defendant. It sets out the amount claimed and warns you that if you do not attend, the court may proceed in your absence and make a liability order against you.

Your deadline: You must attend the hearing on the date stated. The council must give you at least 10 working days' notice (technically, the rules say the summons must be served at least 10 days before the hearing, but in practice you often get 2-4 weeks).

What you should do: Attend the hearing. This is important. If you do not attend, the court will almost certainly make the liability order without hearing your side. You have defences available (see below), and you can only raise them if you are there. If you cannot attend, write to the court and ask for an adjournment, explaining your reasons. Do it as soon as you receive the summons. If you attend, you can:

• Dispute that you are the liable person for that property
• Challenge the council tax band (if the property is in the wrong band, you owe less)
• Claim a single person discount was not applied when it should have been
• Claim a disabled person's relief was not applied
• Claim you were entitled to council tax reduction and the council did not grant it
• Ask for a time to pay order (even if the council refused one earlier, the court can still make one)

The court has no power to forgive the debt entirely, but it can order you to pay by instalments.

What happens if you ignore it: The court makes a liability order in your absence. This order is then enforceable, and the council can pursue bailiffs or other enforcement.

Stage 4: Liability order hearing - what to do and defences available

This is your chance to be heard before the court orders you to pay.

What to bring

Bring evidence of your defences:

• Proof of ownership or tenancy if you dispute you are liable
• A council tax band valuation report if you think the band is wrong
• A copy of your council tax reduction application and decision letter
• Payslips, benefit statements, or a letter from your employer showing your circumstances have changed
• Any correspondence with the council showing you were promised a payment plan

Possible defences

You are not the liable person. If you live in the property but are not the person whose name is on the bill, you may not be liable. Liability is defined in the Local Government Finance Act 1992. Generally, the liable person is the owner of the property, or if it is rented, the person with the legal right to occupy it (the tenant). If you are a lodger or a guest, you are not liable. If the council is chasing you for a debt on a property you no longer own or do not occupy, bring evidence (mortgage discharge, tenancy end letter, removal confirmation).

The property is in the wrong band. Council tax is set by the valuation band of the property. England has bands A through H. If the property is wrongly banded, you can ask the assessor to revalue it (and then challenge the valuation). If a revaluation has been done since the bill was issued, the new band applies. Bring evidence from the Valuation Office Agency (VOA) if you have requested a revaluation.

You qualify for single person discount. If you are the sole occupant and you are of working age (18 and over, not a full-time student), you get a 25 per cent discount. If the council has charged you the full amount without the discount, this is a valid defence. Bring proof you are the only occupant (tenancy, mortgage, utility bill, driving licence showing that address).

You qualify for a disability relief. Some properties occupied by a person with a disability qualify for relief. Bring evidence from the council or the assessor confirming this, or your disability documentation (if you are comfortable sharing it).

You were entitled to council tax reduction. If you are on a low income, you may qualify for council tax reduction (the replacement for the old council tax benefit). If the council did not grant you a reduction you were entitled to, this is a defence. Bring your application, the decision letter, and proof of income.

The council has not correctly calculated the amount. If you believe the council has made an arithmetical error in calculating the balance, bring evidence. This is less common but can happen if the council has not credited payments you made or has double-charged.

What happens at the hearing

You attend the magistrates' court. The council (or its lawyer or officer) will present its case: the property address, your name, the amount owed, and the history of non-payment. You will be invited to speak. You can:

• Tell the magistrate you have defences (see above) and present your evidence
• Ask for a time to pay order (the court can make one even if the council did not offer one)
• Explain your circumstances: redundancy, illness, benefit delay, childcare costs
• Ask for a short adjournment if you need time to get evidence or sort out a payment plan

The magistrate will then decide. If there are no valid defences and you cannot reach a payment agreement, the magistrate will make a liability order. This is not a conviction; it is a civil order. It does not go on your criminal record.

Stage 5: After the liability order - enforcement options the council has

Once the court has made a liability order, the council can pursue several enforcement methods. It does not have to use all of them; it can pick one or combine them.

Enforcement option 1: Attachment of earnings (Council Tax Regulations 1992 schedule 4)

The council can ask the magistrates' court to make an attachment of earnings order. This order requires your employer to deduct money from your wages and send it to the council.

How much can be deducted: The amount depends on your net earnings. A court can order deductions from between 3 per cent and 5 per cent of net wages, or a fixed amount per week, depending on what you can afford. The rules set out protected earnings levels: the court will not order deductions that leave you with less than the protected level (currently around the minimum wage for your hours).

Your employer's role: Your employer must comply with the order. They will not tell you how much the council is taking, but you will see it on your payslip.

What you can do: If the order is causing hardship, you can ask the court to vary it. You must apply to the magistrates' court and explain your circumstances. For example, if you have lost income or taken a pay cut, the court can reduce the deduction. You can also ask the court to suspend the order if you arrange to pay the council directly.

Enforcement option 2: Deductions from benefits

If you are on certain benefits (jobseeker's allowance, universal credit, employment and support allowance, incapacity benefit, income support, pension credit), the council can apply to the Department for Work and Pensions for a benefit deduction scheme. Money is deducted directly from your benefits and sent to the council.

How much can be deducted: The standard deduction is about 5 per cent of your benefit. In practice, this is usually a small weekly amount (for example, 2-3 pounds from universal credit).

What you can do: You have limited options to challenge a benefit deduction, but you can contact the DWP and ask them to suspend it if you can pay the council directly. You can also contact the council and ask for a payment plan in place of deductions.

Enforcement option 3: Bailiffs (certificated enforcement agents)

The council can instruct a certificated enforcement agent (commonly called a bailiff) to collect the debt. This is a serious step and the bailiff has legal powers.

What bailiffs can do: A bailiff can visit your home and ask you to let them in. If you let them in, they can see what goods you own and may take control of (seize) goods to sell to pay the debt. They cannot take essential items (your bed, clothing, cooking equipment) or goods worth less than a certain threshold. They can also take action to gain entry to your home, though breaking down doors is rare and requires a warrant. They can also take goods from your workplace.

What they cannot do: Bailiffs cannot enter your home by force without a warrant (though they can ask you to open the door). They cannot enter between 9 p.m. and 8 a.m. They cannot take goods if the debt is less than a certain amount (£615 or more is the threshold, though this varies).

Your rights: You have the right to challenge the bailiff's actions. If the bailiff has acted unlawfully (for example, has taken essential items, or has not given you notice), you can complain to the enforcement agent's company and, if needed, to the court. Bailiffs must give you 7 days' notice before their first visit.

What you should do: If a bailiff contacts you, do not ignore them. You can:

• Speak to them about a payment plan
• Contact the council and ask to pay the full amount or set up a plan before the bailiff visits
• Ask the court to stay (pause) the enforcement if you have set up a payment plan with the council
• Contact a free debt advice service (Citizens Advice, StepChange) for help negotiating

Enforcement option 4: Charging order on property (debts over 1,000 pounds)

If the debt is 1,000 pounds or more and you own a property, the council can ask the court to make a charging order. This creates a legal charge on your property, a bit like a second mortgage.

What it means: The council's debt becomes secured against your home. If you sell the property, the council will take its money from the sale proceeds before you get any. The charging order does not force you to sell; you can stay in your home and pay by other means. But if you sell or remortgage, the debt must be paid.

What you should do: If you own a property and the council is considering a charging order, take this seriously. Apply for a payment plan immediately. Contact the council and explain your circumstances. Ask for a time to pay order. Charging orders are expensive for the council to obtain, so most councils prefer a negotiated payment plan. If the council does apply for a charging order and the court makes one, you can apply to have it varied or removed if your circumstances have changed and you can now pay.

Enforcement option 5: Committal to prison - what it really means

The council can apply to the court for committal to prison. This is rare and heavily restricted by law, but it is theoretically possible.

Important limits: The court can only order committal if:

• You have willfully refused or culpably neglected to pay the council tax
• You have been given a chance to pay by instalments (a time to pay order) and have broken that order
• The debt is substantial and non-payment is wilful, not due to hardship

In practice, magistrates very rarely send someone to prison for council tax. Courts have said that they can only order committal if a person with the means to pay has stubbornly refused. If you are genuinely poor or in hardship, prison is not a realistic consequence.

Your rights: If the council applies for committal, you have the right to:

• Attend the hearing and give evidence about your means (whether you can actually afford to pay)
• Apply for legal aid (council may pay for a lawyer if you are on a low income)
• Present evidence of hardship, illness, disability, caring responsibilities, or other reasons you cannot pay

If you are ordered to prison, you have the right to appeal.

Council tax reduction (CTR) and discretionary relief

Before the enforcement process gets this far, check whether you qualify for council tax reduction or other relief.

Council tax reduction (CTR): If you are on a low income, you may qualify for a reduction of up to 100 per cent of your bill. CTR is means-tested. The rules depend on your income, savings, family circumstances, and whether you are in or out of work. You can apply to your council, and applications are usually decided within 4 weeks. If you are eligible, your liability is reduced or waived.

Discretionary relief: Some councils have a local scheme to grant discretionary relief in cases of hardship. You can ask your council whether it has such a scheme and whether you qualify.

Why it matters: If you have been overpaying because you did not know you qualified for reduction, the council should recalculate and credit the overpayment to your current bill. This can sometimes wipe out or greatly reduce your arrears.

Day to day (timeline)

Week 1: You miss a payment. Council sends reminder notice (if you are more than 7 days late).

Week 2: You do not pay. Council sends final notice if you are still behind after the reminder.

Weeks 3-6: You do not pay or contact the council. Council applies to magistrates' court.

Week 7-10: Court issues summons. You have at least 10 working days' notice.

Week 10: You attend (or do not attend) the hearing. If you are not there, the court makes a liability order in your absence. If you are there and defend, the magistrate decides. If no valid defence, the court makes the liability order.

Weeks 11+: Council can now enforce. It can send bailiffs, ask for attachment of earnings, deductions from benefits, charging order, or (very rarely) committal application.

Throughout this process (from week 1 to week 11+), you can contact the council and ask for a payment plan or time to pay order. Most councils will stop enforcement if you agree to pay and stick to the plan.

Common misconceptions

"Council tax arrears will be wiped by the statute of limitations." No. Council tax is not subject to a time limit for enforcement. The council can pursue arrears indefinitely.

"The council must pursue me in criminal court." No. Council tax arrears are a civil matter. The magistrates' court hears it as a civil case, not criminal. There is no criminal conviction.

"I can ignore a summons because it is not a real court order." No. A summons from the magistrates' court is a real court order. Ignoring it means the court will decide the case without hearing you, and the council is almost certain to win.

"The council cannot take enforcement action if I am on benefits." No. The council can ask the DWP to deduct from your benefits even if you are unemployed. Deductions from benefits are one of the most common enforcement methods.

"Bailiffs can seize my house." No. Bailiffs take goods, not property. They cannot take your home. If the debt is over 1,000 pounds and you own a property, the council can ask for a charging order, which creates a charge on the property but does not take it.

"I can refuse entry to a bailiff and they cannot do anything." Bailiffs can take steps to gain entry in some cases and can apply for a warrant to enter your home. However, if you refuse entry, the bailiff may take goods from your workplace or apply for a charging order if the debt is large enough.

"Council tax reduction is just for people on benefits." No. Council tax reduction is means-tested and available to anyone on a low income, whether employed or not. Check whether you qualify.

Related concepts

Local Government Finance Act 1992: The statute that governs council tax, liability, banding, and the process for obtaining a liability order.

Valuation Office Agency (VOA): The government body that sets council tax bands. If you believe your property is wrongly banded, you can ask the VOA to revalue it.

Magistrates' court: The lowest level of criminal and civil court in England, Wales, and Northern Ireland. Council tax cases are heard by a magistrate or a panel of magistrates.

Time to pay order: A court order requiring you to pay the council tax arrears by instalments. Can be made at any stage of the process.

Certificated enforcement agent: A bailiff with formal qualification and powers to seize goods to recover a debt. Must comply with standards of conduct.

Charging order: An order that creates a legal charge on your property. Does not take the property but secures the council's claim against it.

Council tax reduction: A means-tested relief available to people on low incomes. Can reduce your bill by up to 100 per cent.

Discretionary relief: A relief granted at the council's discretion in cases of hardship. Each council has its own local scheme.

Attachment of earnings: A court order requiring your employer to deduct money from your wages and send it to the council.

Benefit deduction scheme: A DWP process by which money is deducted from your benefits and sent to the council.

Sources

• Citizens Advice: Council Tax Arrears - https://www.citizensadvice.org.uk/about-us/our-work/policy/policy-research-topics/debt-and-money-policy-research-and-consultation/debt-and-money-research/council-tax-arrears/
• UK Government: Council Tax Arrears - https://www.gov.uk/council-tax-arrears
• Council Tax (Administration and Enforcement) Regulations 1992 (SI 1992/613) - https://www.legislation.gov.uk/uksi/1992/613

Disclaimer

This page provides general information about UK council tax arrears and the process for obtaining a liability order. It is not legal advice and does not constitute a lawyer-client relationship. The rules and procedures described are accurate as of 28 May 2026 but may change. If you face court proceedings or enforcement action, consider obtaining legal advice from a qualified solicitor or from a free service such as Citizens Advice or StepChange.

Written by Peter Kolomiets, founder of CaseCalm. UK content reviewed 2026-05-28.