Legal action begins to recover council tax debts in Plymouth
There was a pause on payments over the summer due to the pandemic
Plymouth City Council has started legal action to recover council tax debts after a pause over the summer due to the pandemic.
The council confirmed that it had started the process to obtain liability orders for non-payment from the magistrates court.
But a spokesperson urged anyone struggling to pay their council tax to get in touch as early as possible to seek help.
People on low incomes, both in and out of work, can claim Council Tax Support, giving a discount of up to 80 per cent on the bill, based on the income and circumstances of the household.
In March, the city council announced an extra £150 discount for people claiming the support.
It was estimated around 12,000 would benefit from the Government scheme, designed to help those whose income has been hit by the pandemic.
The council also has a discretionary Exceptional Hardship Fund, to cover the shortfall left by the support scheme in some circumstances, designed as short-term emergency help.
Councils are concerned that the economic impact of the pandemic will affect the amount of council tax and business rates they are able to collect, and the Government has allowed them to spread recovery over three years instead of one.
The latest financial position for the council is that it is facing an overspend of just under £1million this year on its revenue budget of £194million, which covers its day-to-day spending on services.
If anyone misses a council tax payment, they will be sent a reminder, with a maximum of two in a year.
If a reminder or final notice is ignored, the next step is a summons to court, with a fee of £23.40 added to the bill.
At that stage the right to pay in instalments is lost and the full amount is due.
The council can then apply to the court for a liability order, adding an extra £24 fee to the bill, giving it the power to recover the debt.
The council will send out an information request, asking for employment and income details.
It can then seek to recover the money through an attachment of earnings or benefits, or bankruptcy.
If that is not possible, the council can refer the debt to an enforcement agent, which adds a £75 fee.
The agent, or bailiff, will get in touch by phone or letter to arrange payment.
If they cannot get in touch, a home visit to arrange payment or list goods for seizure will add £235 to the debt.
If the enforcement action fails to collect the outstanding amount, the debtor could receive a summons to attend court for a committal hearing when they will face up to three months in prison.
More information on Council Tax Support is available on the city council’s website at https://www.plymouth.gov.uk/counciltax/counciltaxsupport