Factsheet | Recovery of Council Tax
This fact sheet is about how your local council may try to collect Council Tax or community charge (poll tax) arrears from you.
Summary warrant
Council Tax or poll tax arrears are collected through a special procedure called a 'summary warrant'. This procedure differs from normal debt recovery in two ways.
- The procedure to obtain a warrant is by summary application to the sheriff supported by a certificate that the tax is due and unpaid, rather than by normal court action.
- Your council may not tell you that it is applying to the court for a summary warrant. Even if you are told that a summary warrant application is going to be made, you may not be told when this is going to take place.
The summary warrant authorises recovery of unpaid Council Tax "due and unpaid by each person specified in the application".
Your partner or spouse may be included in the summary warrant. The summary warrant automatically imposes a 10% surcharge (penalty) on you.
ADVICE
If you have made a claim for Council Tax Benefit after a summary warrant has been granted, you could try and negotiate with your local council not to enforce it. Alternatively, you could apply for time to pay your Council Tax debt (see 'What can I do to avoid further action?' for more information).
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What can I do to avoid further action?
From 1 April 2008 you can apply to the sheriff for time to pay your Council Tax debt. This is called a 'time to pay order'. If your time to pay order application is granted and you keep making the payments ordered, the council cannot make you bankrupt or use diligence against you (this includes enforcement action such as arrestment of wages).
When can I apply for a time to pay order?
Once a summary warrant has been granted the council must:
- serve you with a 'charge for payment'; and
- offer you time to pay the debt.
What is a charge for payment?
A charge for payment is a formal request in writing, demanding that you pay the arrears within a particular period of time. The council cannot enforce payment of the debt using diligence (for example arresting your wages) until the charge has been served and you have been offered time to pay.
Your local council may serve the charge for payment through its own legal department, or it might get a debt collection agency or a sheriff officer to serve it. When the local authority uses a debt collection agency or a sheriff officer, it can add on the fees for using the agent to the arrears.
WARNING
The council cannot use diligence to enforce your Council Tax arrears until it has served a charge for payment and you have been offered time to pay. But if you claim benefits the council can apply for a third-party deduction from your income support, income-based job seeker's allowance, pension credit or income-related employment and support allowance once a summary warrant has been issued,. To use this method of collecting your Council Tax arrears the council does not have to serve a charge for payment.
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How do I apply?
Once a charge for payment has been served, the papers that you get from the council may include a form called a DSA 2. This is the form to use to apply for a time to pay order. If there is no form with your charge for payment, it is the responsibility of the council, or the debt collection agency, or sheriff officer acting for them, to ensure that you know how to apply for time to pay the Council Tax arrears and how to obtain a copy of the form. There is a sample form at the back of this fact sheet.
When you fill in the form you will need to provide all your financial details. This information will show the sheriff why you can't pay the full amount, but that you can pay instalments towards the debt.
Applying for a time to pay order is straight forward and you can either do this yourself or get help from a money adviser. Phone us for advice before applying. Alternatively, to find a local money adviser to help you, check Money Advice Scotland's website at www.moneyadvicescotland.org.uk for details of your nearest money advice centre.
Fact sheet
We have a fact sheet on 'Time to pay directions and orders', which may be of assistance to you. Phone us for a copy.
Council Tax arrears and the Debt Arrangement Scheme
If you have more than one debt you might benefit from applying for a debt-payment programme under the Debt Arrangement Scheme. You can normally include Council Tax arrears in a debt-payment programme as long as they are not already being collected directly from your benefit. If you are successful in applying for a debt-payment programme, you will make one regular payment to cover all your debts. This is made to an approved payments distributor who will send the money to your creditors for you. If you keep to the agreed payments, your creditors will not be able to use diligence (enforcement action) against you.
INFORMATION
To set up a debt-payment programme you will need to have more than one debt. You can still apply if you have two debts to the same creditor, for example, Council Tax debt for two separate years.
REMEMBER
A debt-payment programme will give you protection from your creditors making you bankrupt, or forcing you to pay your debt by using diligence. This protection starts once you have make an application for a debt-payment programme and are waiting for it be approved.
Recent changes mean that joining a debt-payment programme freezes interest, fees and charges on your debt. This means you are not charged extra from the date your debt-payment programme is approved. Interest, fees and charges will continue to be frozen as long as you keep to the payments. If you think that a debtpayment programme might help you, phone us for advice.
REMEMBER
Your Council Tax arrears will be excluded from a debt-payment programme if they are already being paid directly from your benefits or if you have a conjoined earnings arrestment.
Fact sheet
We have a fact sheet on the 'Debt Arrangement Scheme', which may be of assistance to you. Phone us for a copy.
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What can a summary warrant lead to?
If you have received a 'charge for payment' for your Council Tax and have not applied for time to pay, or if you have been granted time to pay but have fallen behind with the payments, the council will be able to use diligence against you. Types of diligence that might be used include:
- an earnings arrestment;
- a bank arrestment (e.g. of a bank account) and action of furthcoming;
- an attachment of non-domestic property;
- an application to the sheriff for an exceptional attachment order (EAO); or
- an inhibition on the sale of your house.
Fact sheet
We have a fact sheet on 'Enforcing a debt against you by diligence', which may be of assistance to you. Phone us for a copy.
Although there are different types of diligence, most local authorities prefer to try to recover unpaid taxes by using earnings arrestment or arrestment of bank accounts.
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What is an earnings arrestment?
The general effect of an earnings arrestment is to make your employer take deductions from your wages and pay this to the sheriff officer. Failure to do so makes the employer liable for any missed payments. Your employer has a limited time to implement it and the arrestment must be operated on any pay day, starting at least 7 days after the schedule of arrestment is served upon the employer.
The service of an arrestment schedule should be made by recorded delivery or sent by registered post. The schedule must be signed by the sheriff officer, who should send you a copy.
The deductions will be made from your net income. This means the income you have left after taking away tax, national insurance and 50% of your pension contributions.
If the earnings arrestment is successful an amount will continue to be deducted from your wages each salary date until the debt is paid off. The council must serve a debt advice and information package on you from twelve weeks before serving an earnings arrestment. This has to be in the form set by the Scottish Government. It will explain your rights and give you details of how to get advice. If they do not do this, any earnings arrestment will be illegal.
Fact sheet
We have a fact sheet on 'Enforcing a debt against you by diligence', which may be of assistance to you. Phone us for a copy.
INFORMATION
The schedule of arrestment tables attached to this fact sheet show how the deductions are calculated.
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What if my bank account is arrested?
A bank arrestment will freeze your account until you give authority or a 'mandate' for release of an amount to cover either the total debt due, or a lump sum towards it.
If you don't sign the mandate the creditor can raise a 'furthcoming action' for the bank to release the funds. If you have been left with no money because of the arrestment (e.g. your wages had just been paid into the bank) try to get the sheriff officer to accept a proportion (e.g. half of the amount arrested) and make them an offer to repay the rest of the debt by instalments. They may insist on you giving them details of your employment, so they can arrest your wages if you miss a payment.
Fact sheet
We have a fact sheet on 'Enforcing a debt against you by diligence', which may be of assistance to you. Phone us for a copy.
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What is an attachment?
If the debt cannot be recovered through an earnings arrestment or other form of arrestment, a sheriff officer may decide to try to arrange the seizure and sale of some items of your personal property. New procedures have been introduced to replace poindings and warrant sales. As a result there is now a distinction made between a creditor's right to try to seize property outwith your home (now known as an attachment) and the more limited right to apply for an order to gain entry to your home for the seizure of domestic property (now known as an exceptional attachment order).
Fact sheet
We have a fact sheet on 'Enforcing a debt against you by diligence', which may be of assistance to you. Phone us for a copy.
In the case of an attachment your creditor needs to serve a debt advice and information package on you. This has to be in the form set by the Scottish Government. It will explain your rights and give you details of how to get advice. This can be delivered by the sheriff officer when they visit your house to carry out an attachment.
INFORMATION
Before making an attachment for unpaid Council Tax the sheriff officer must show you the summary warrant and give you a last chance to pay the debt and expenses.
ADVICE
The sheriff officer cannot enter your home to enforce an attachment. See below for exceptional attachment orders for domestic property. But they can go into a garage or outhouse and can enter any of your business premises.
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What can be attached?
Sheriff officers cannot attach:
- any implements, tools of trade, books or other equipment reasonably required for use in practising your profession, trade or business, up to a total value of £1,000;
- any vehicle you reasonably require up to the value of £1,000;
- a mobile home if it is your only or main residence; or
- any tools or other equipment reasonably required for the purpose of keeping your garden or yard in good order.
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What can I do to challenge an attachment?
Once the attachment is complete, the sheriff officer must give you a signed attachment schedule. This will detail the goods attached and the value placed on them. The sheriff officer should inform you of your right to buy back the items at that value. This is called 'redeeming' the goods.
ADVICE
You have 14 days from the date of the attachment to redeem the items.
If the sheriff officer attaches something which is normally exempt from an attachment, you must get advice immediately. You may have to apply to court to challenge the validity of the attachment. This is done using form 13. If you think something has been undervalued, you can apply to the court at any time before the auction using form 4. Phone us for advice.
Where you car has been attached (because it is valued at more than £1,000), it is possible to apply to have a sale within 14 days and for you to be given back £1,000 to buy a second-hand replacement. You need to use form 11 for this.
If the item belongs to a third party they can apply to the court for its return using form 18.
Items which are jointly owned (for example, a car) can be attached. However, you can sometimes avoid the sale of something that is jointly owned by arranging for your partner to buy your share of the item using form 19, or the other person can apply to the court to ask the sheriff to release the jointly owned goods on the grounds that their sale would be 'unduly harsh' to that person, using form 20.
WARNING
Once an item has been attached, the sheriff officer can remove it after giving you 7 days notice.
The sale cannot take place for another 7 days. You must be told the date and where it will take place. The sale will not take place in your home. Instead, goods will be taken to an auction room. You must be given the chance to buy the goods back at the appraised value before the sale. This is the value set by the sheriff officer. You will still be liable for any debt that is left over once the goods are sold.
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Court forms
There are set court forms that you should use when making an application to the sheriff court about problems with the attachment procedure. The forms are available from your local sheriff court and the court should tell you which form to use. The forms can also be found on the court website www.scotcourts.gov.uk or at a local CAB or law centre.
HELP
If you need help with court forms, phone us for advice
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What is an exceptional attachment order (EAO)?
This is a form of diligence which creditors can try to use where they think that you have property in your home which is sufficiently valuable for them to want to try to have it attached and sold at auction.
This is now intended to be an action of last resort by a creditor. Unlike attachment for nondomestic property, the creditor has to apply to the sheriff court for an exceptional attachment order (EAO).
Before granting an exceptional attachment order for a Council Tax debt, a sheriff will have to consider a number of factors including:
- whether you have already received money advice;
- any agreement between you and the local authority for settlement of the debt;
- any declaration or representation you have made to the court about your assets, their value and your overall financial circumstances.
Once the sheriff has considered all this, they have to then look at the following questions.
- Is a visit by a money adviser required to establish your financial position?
- Has the local authority taken responsible steps to negotiate a settlement of the debt?
- Has the local authority tried to recover the debt by other means including:
- an arrestment and action of furthcoming and sale; and
- an earnings arrestment?
- Is there a reasonable prospect that the amount obtained at an auction of your nonessential assets would be equal to the expenses of the attachment plus £100?
- Is it reasonable in all the circumstances to grant the exceptional attachment order?
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What will happen if the court grants an exceptional attachment order?
The sheriff officer will visit your home and attach articles to the value of the total debt plus expenses. They will value items on the basis of their open market value.
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What can be attached under an exceptional attachment order?
A sheriff officer should not attach any articles (up to a total value of £150) which are likely to be of sentimental value to you, e.g. a wedding ring or family heirloom.
In addition sheriff officers cannot attach:
- basic items needed for family life including clothes, work tools, essential furniture, housekeeping equipment, children's toys, bedding, a home computer, radio, microwave, TV or telephone;
- rented or hire purchase goods which are still being paid off (tell the sheriff officer that the item is rented or under a hire purchase agreement, but it is best to provide evidence, such as a copy of the agreement); or
- other people's property, for example, anything belonging to a child, family member or neighbour. You need to show proof. The owner can tell the sheriff officer that the item belongs to them, and provide written evidence
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What happens to the items once they are attached?
Generally, unless the sheriff officer considers it impractical to do so, they will remove any article which is attached immediately. If the item is not immediately removed, they must give you notice of the date arranged for the removal of the article.
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What can I do to challenge an exceptional attachment order?
As well as buying back (redeeming) the goods at the value set by the sheriff officer, you have an opportunity to challenge the exceptional attachment order.
Within 7 days of the attachment, you can apply to the sheriff court requesting that the articles should be released from the exceptional attachment order. You need to use form 28.
You can do this on the following grounds:
- that the attachment of an article is not "competent" (this means that it is not legally possible for the sheriff officers to do this);
- that an auction of an attached item would be unduly harsh; or
- that goods are of sentimental value (if the total goods are worth less than £150).
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Council Tax and bankruptcy
Petitioning for your own bankruptcy (sequestration) can be an option for dealing with your debts including Council Tax arrears. Unless you are on a low income and have low assets, you need to be 'apparently insolvent' to declare yourself bankrupt. If you have received a 'charge for payment' for non-payment of Council Tax and it has expired, you are 'apparently insolvent' and could petition for your own bankruptcy. Bankruptcy is a serious step and your home, assets and employment could be at risk. Phone us for advice if you are considering bankruptcy.
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Schedule of Arrestment tables
These tables will be in use from 6th April 2009
| Net Earnings | Deduction |
|---|---|
| Not exceeding £85 | Nil |
| Exceeding £85 but not exceeding £125 | £4.00 |
| Exceeding £125 but not exceeding £135 | £6.00 |
| Exceeding £135 but not exceeding £145 | £9.00 |
| Exceeding £145 but not exceeding £160 | £13.00 |
| Exceeding £160 but not exceeding £175 | £15.00 |
| Exceeding £175 but not exceeding £190 | £19.00 |
| Exceeding £190 but not exceeding £210 | £22.00 |
| Exceeding £210 but not exceeding £230 | £25.00 |
| Exceeding £230 but not exceeding £250 | £28.00 |
| Exceeding £250 but not exceeding £265 | £32.00 |
| Exceeding £265 but not exceeding £285 | £34.00 |
| Exceeding £285 but not exceeding £300 | £38.00 |
| Exceeding £300 but not exceeding £320 | £41.00 |
| Exceeding £320 but not exceeding £340 | £47.00 |
| Exceeding £340 but not exceeding £365 | £54.00 |
| Exceeding £365 but not exceeding £395 | £60.00 |
| Exceeding £395 but not exceeding £425 | £66.00 |
| Exceeding £425 but not exceeding £455 | £73.00 |
| Exceeding £455 but not exceeding £485 | £82.00 |
| Exceeding £485 but not exceeding £520 | £92.00 |
| Exceeding £520 but not exceeding £555 | £101.00 |
| Exceeding £555 but not exceeding £590 | £110.00 |
| Exceeding £590 but not exceeding £630 | £120.00 |
| Exceeding £630 but not exceeding £675 | £145.00 |
| Exceeding £675 but not exceeding £730 | £170.00 |
| Exceeding £730 but not exceeding £795 | £199.00 |
| Exceeding £795 but not exceeding £870 | £230.00 |
| Exceeding £870 but not exceeding £945 | £262.00 |
| Exceeding £945, then £262 in respect of the first £945 + 50% of the remainder | |
| Net Earnings | Deduction |
|---|---|
| Not exceeding £370 | Nil |
| Exceeding £370 but not exceeding £490 | £15.00 |
| Exceeding £490 but not exceeding £550 | £25..00 |
| Exceeding £550 but not exceeding £610 | £34.00 |
| Exceeding £610 but not exceeding £670 | £45.00 |
| Exceeding £670 but not exceeding £730 | £56.00 |
| Exceeding £730 but not exceeding £800 | £69.00 |
| Exceeding £800 but not exceeding £870 | £82.00 |
| Exceeding £870 but not exceeding £940 | £94.00 |
| Exceeding £940 but not exceeding £1,010 | £107.00 |
| Exceeding £1,010 but not exceeding £1,090 | £120.00 |
| Exceeding £1,090 but not exceeding £1,170 | £133.00 |
| Exceeding £1,170 but not exceeding £1,250 | £145.00 |
| Exceeding £1,250 but not exceeding £1,340 | £157.00 |
| Exceeding £1,340 but not exceeding £1,440 | £182.00 |
| Exceeding £1,440 but not exceeding £1,550 | £208.00 |
| Exceeding £1,550 but not exceeding £1,660 | £233.00 |
| Exceeding £1,660 but not exceeding £1,780 | £259.00 |
| Exceeding £1,780 but not exceeding £1,910 | £283.00 |
| Exceeding £1,910 but not exceeding £2,040 | £309.00 |
| Exceeding £2040 but not exceeding £2,180 | £343.00 |
| Exceeding £2,180 but not exceeding £2,330 | £381.00 |
| Exceeding £2,330 but not exceeding £2,490 | £419.00 |
| Exceeding £2,490 but not exceeding £2,680 | £457.00 |
| Exceeding £2,680 but not exceeding £2900 | £568.00 |
| Exceeding £2,900 but not exceeding £3150 | £693.00 |
| Exceeding £3,150 but not exceeding £3450 | £823.00 |
| Exceeding £3,450 but not exceeding £3,800 | £982.00 |
| Exceeding £3,800 but not exceeding £4,100 | £1,140.00 |
| Exceeding £4,100, then £1,140 in respect of the first £4,100 + 50% of the remainder | |
| Net Earnings | Deduction |
|---|---|
| Exceeding £12 but not exceeding £16 | £0.50 |
| Exceeding £16 but not exceeding £19 | £0.90 |
| Exceeding £19 but not exceeding £22 | £1.40 |
| Exceeding £22 but not exceeding £25 | £1.90 |
| Exceeding £25 but not exceeding £28 | £3.10 |
| Exceeding £28 but not exceeding £31 | £3.70 |
| Exceeding £31 but not exceeding £35 | £4.30 |
| Exceeding £35 but not exceeding £39 | £4.90 |
| Exceeding £39 but not exceeding £43 | £5.50 |
| Exceeding £43 but not exceeding £47 | £6.10 |
| Exceeding £47 but not exceeding £52 | £7.40 |
| Exceeding £52 but not exceeding £57 | £8.30 |
| Exceeding £57 but not exceeding £62 | £9.90 |
| Exceeding £62 but not exceeding £68 | £11.50 |
| Exceeding £68 but not exceeding £75 | £13.50 |
| Exceeding £75 but not exceeding £82 | £15.90 |
| Exceeding £82 but not exceeding £90 | £18.80 |
| Exceeding £90 but not exceeding £100 | £21.70 |
| Exceeding £100 but not exceeding £110 | £26.40 |
| Exceeding £110 but not exceeding £121 | £31.10 |
| Exceeding £121 but not exceeding £133 | £35.80 |
| Exceeding £133, then £35.80 in respect of the first £133 + 50% of the remainder | |
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Remember: You can always Phone us for advice about any difficulty you are having in dealing with your debts
0808 808 4000
© Copyright National Debtline 2001 (updated March 2009.)
Whilst we endeavour to keep the content of our website as up to date as possible, National Debtline cannot be held responsible for any changes in legislation or for developments in caselaw since this information was published.
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