Free, independent debt information
Need to talk to someone? Visit Money Helper
IVA Advice Online logo
Home › Council Tax Debt
Council Tax Debt Help

Council Tax Debt Help

Practical, free guidance on council tax arrears — what the council can do, how to stop it escalating, and how to clear what you owe.

If you've fallen behind on your council tax, you're dealing with what's known as a priority debt — one where the consequences of ignoring it are more serious than with most other bills. Councils have strong powers to collect what they're owed, and the process can move quickly. The good news is that at every stage there are ways to take back control, reduce what you owe, and stop the situation getting worse.

This section explains how council tax arrears build up, what the council can and can't do, and the practical steps to sort it out — whether that's checking your bill is correct, agreeing an affordable arrangement, or using a formal debt solution to clear the arrears for good.

The essentials

  • Council tax is a priority debt — deal with it before non-priority debts like credit cards.
  • Miss an instalment and ignore the reminder, and the whole year's balance can become due at once.
  • A liability order from the magistrates' court unlocks bailiffs and deductions from wages or benefits.
  • You can almost always still agree a payment arrangement — even after a liability order or a bailiff visit.
  • Arrears can be included in an IVA or a DRO, which stops the council chasing them separately.

How council tax arrears escalate

Understanding the sequence helps you see where you are and how much time you have. It usually runs: a reminder notice after a missed instalment (with about seven days to put it right); loss of your right to pay monthly, so the full annual balance falls due; a court summons and then a liability order, which adds costs; and finally enforcement — bailiffs, or deductions taken straight from your wages or benefits. Acting early, ideally at the reminder stage, is far cheaper and simpler than waiting.

Guides in this section

Can't pay your council tax?The first steps to take if you can't afford this year's bill. How to stop council tax bailiffsYour rights at the door and five ways to halt enforcement. Council Tax Support & discountsCut the bill first — reductions, exemptions and how to claim. Setting up a payment planHow to agree affordable instalments on arrears. What happens when it goes to courtThe summons, the hearing and what a liability order means. Liability orders explainedWhat a liability order is and the powers it gives the council. Attachment of earningsHow much can be taken from your wages or benefits. Can council tax debt be written off?Section 13A, formal solutions and the six-year rule. Council tax debt after 6 yearsWhen old arrears become unenforceable — and when they don't. Does a DRO cover council tax?Debt Relief Orders, the thresholds and how arrears are cleared.

Where an IVA or DRO fits in

If council tax arrears are part of a wider debt problem, a formal solution can deal with them alongside everything else. An IVA rolls qualifying debts into one affordable monthly payment and, once approved, stops the council pursuing the included arrears — see does an IVA cover council tax and IVA and council tax arrears. For people on a low income with few assets, a Debt Relief Order may write the arrears off after 12 months. Both routes also stop enforcement, which is why they're worth understanding if bailiffs are involved.

Keep paying the current year where you can. A formal solution settles arrears you already owe, but this year's ongoing council tax is still yours to pay. Falling behind again simply creates fresh arrears outside the arrangement.

For free, impartial money guidance at any stage, Money Helper is a good place to start.

Related guides

Can't Pay Your Council Tax? →How to Stop Council Tax Bailiffs →Does an IVA Cover Council Tax? →