One of the most reassuring things to know about council tax arrears is that you can almost always pay them off in instalments. Councils have the power to accept a payment arrangement at any stage — before court, after a liability order, and even once bailiffs are involved. They aren't obliged to, but most will accept a realistic, clearly set-out offer, because a steady arrangement costs them less than failed enforcement.
Quick summary
- You can propose a plan at any stage, including after a liability order.
- Ask to spread the current year over 12 months instead of 10 to lower each payment.
- Claim any discounts or Council Tax Support first — it shrinks the arrears.
- Put your offer in writing, with an exact amount and date.
- If a plan can't realistically clear the debt, look at an IVA or DRO.
Two quick wins before you offer
First, ask to pay this year's bill over 12 monthly instalments rather than the usual ten — it lowers each payment and frees up money for the arrears. Second, check you're getting every reduction you're entitled to; these can be backdated and cut the balance directly. Our guide to Council Tax Support and discounts runs through them.
How to propose a plan the council will accept
- Work out a simple budget: income, essential outgoings, and what's genuinely left over.
- Offer a specific amount on a specific date — for example, "£120 on the 28th of each month, starting 28th August".
- Keep paying the current year's council tax alongside the arrears, so you don't build fresh debt.
- Send it in writing (email or the council's form) and keep the confirmation.
- If it's refused, don't stretch beyond what you can afford — ask for a manager to review it.
Negotiating after a liability order or with bailiffs
If the council still holds the debt, propose your plan in the normal way. If it's been passed to an enforcement firm, you can deal with them directly or ask the council to recall it — especially within the seven-day notice of enforcement window, before a £235 visit fee is added. If an attachment of earnings is already running, you can ask to replace it with a voluntary arrangement.
When a payment plan isn't the answer
Sometimes an arrangement only holds if nothing goes wrong, or you'd be borrowing to make it work, or council tax is one of several debts all demanding payments at once. In those cases a formal solution may be kinder and more certain — an IVA, a Debt Relief Order, or a Section 13A hardship application. Free, impartial help is available from Money Helper.