Council Tax Debt Scotland

Council Tax Debt in Scotland

What is Council Tax?

Council tax is a local tax levied by local authorities in the United Kingdom to help fund local services, such as rubbish collection, street cleaning, and local schools.

The amount of council tax a household pays is determined by the valuation band of the property and the local council’s tax rate. The valuation band is based on the property’s value as of April 1, 1991, and properties are categorized into bands ranging from A to H, with A being the lowest and H the highest.

Each local council sets its own council tax rate, which, when combined with the property’s valuation band, determines the annual council tax bill for a particular household. Certain exemptions and discounts may apply, and the tax is typically the responsibility of the person or people living in the property.

Council tax arrears

Council Tax arrears operate in a manner distinct from many other types of debts. Council tax debt is a priority debt. The typical sequence of events unfolds as follows:-

1. If you miss a payment and owe money you will be sent a reminder payment letter giving you seven days to pay the unpaid council tax arrears.

The reminder letter will specify the amount of council tax debts and state that if you do not pay it in one lump sum you will lose the right to pay Council Tax in ten monthly payments and become liable to pay for paying your council tax payment for the financial year in full.

2. If you fail to pay the arrears then you will receive a final notice letter stating that you have an extended period of fourteen days to pay the entire amount of the Council Tax due for the rest of the year. Some local authorities will accept payments in monthly instalments so you should contact them first regarding an affordable repayment plan.

3. Summary Warrant – If you fail to pay the balance of the Council Tax then the council can apply straight to court for a summary warrant.

For the majority of debts the Pursuer would normally raise further action at the sheriff court, serve the action on you and you are then given the opportunity to dispute the amount sued for.

What is a Summary Warrant?

A summary warrant is an official notice from your local authority, urging you to pay overdue amounts, particularly for Council Tax. It spells out the details of how and when to make payments, along with an additional 10% administration fee on the outstanding council tax arrears.

If tackling the entire Council Tax bill in one go is a challenge, you can reach out to the sheriff officers, whose contact details are conveniently found on the summary warrant, and explore the option of settling the dues through manageable instalments.

Here are some important points to note if you are served with a summary warrant:-

• You do not have to be told that the council are applying for a Summary Warrant

• It is granted automatically by the sheriff court;

• If you think the amount being sued for is incorrect you should contact your local council and ask them to look at your account again.

• Sheriff Officers will serve the Summary Warrant on you;

• You then make payments to the Sheriff Officers rather than the council. Contact them to agree a payment arrangement;

• The amount you are due to pay will increase by 10% as a penalty for non-payment;

• If you do make arrangements to pay the council tax arrears you will be served with Charge for Payment by Sheriff Officers.

If you fail to make payment with 14 days of being served with the Charge for Payment then Sheriff Officers can arrest your wages, freeze your bank accounts, take money from your bank accounts and as a last resort arrange bailiffs remove items from your home to auction.

• You can apply for extended time to pay and if this is accepted it prevents Sheriff Officers from taking the above action.

FAQS

How are council tax payments taken?

The council tax bill for Scotland is typically divided over an annual period and highlights costs to pay for the year. Your council tax bill usually explains the exact amount you owe and why. You have a choice of paying via credit card, cash, or by direct debit.

What is a bank arrestment?

A bank freeze may be necessary if the bank requests an account freeze. In the absence of a signed mandate, council members may trigger a significant action. Subsequently, the bank is instructed to release the frozen funds. If council members dispute these actions, they typically release the restrained funds within a 14-week timeframe. When the council seeks to seize funds from your bank account or your building company’s accounts, the officer’s agent usually dispatches letters to detain the bank and building society owners.

It is important to note those on low incomes may be eligible for help through Council Tax Reduction and if you or someone you live with are severely mentally impaired you may be exempt from paying Council Tax altogether

Please contact us if you are being pursued for council tax payments and need debt advice