What happens if you do not pay your Council Tax
Contents
If you do not pay after you get a Liability Order
If you do not pay your debt in full within 14 days of the court granting a Liability Order, we can:
- take money directly from your pay, known as an attachment of earnings order
- take money directly from your benefits, known as an attachment of benefits order
- instruct an enforcement agency (bailiffs) to collect your debt
- start bankruptcy or liquidation proceedings against you
- apply for a Charging Order to secure the amount you owe against your property. This means you cannot sell your property without paying your debt
- apply for an Order for Sale where a court can enforce the sale of your property to pay your debt
Take money from your pay
This is an attachment of earnings order. Once we request this from your employer, it cannot be cancelled unless you pay your debt in full.
Earnings include:
- wages or salary (including any fees, bonus, commission, overtime pay or other additions to wages or salary payable under a contract of service)
- statutory sick pay
The amount we can take is calculated as a percentage of your net pay. This table shows how much we can take based on your earnings.
| Weekly earnings | Monthly earnings | Amount taken |
|---|---|---|
| Up to £75 | Up to £300 | 0% |
| £75 to £135 | £300 to £550 | 3% |
| £135 to £185 | £550 to £740 | 5% |
| £185 to £225 | £740 to £900 | 7% |
| £225 to £335 | £900 to £1,420 | 12% |
| £335 to £505 | £1,420 to £2,020 | 17% |
| Over £505 | Over £2,020 | 17% on the first £505 (weekly) or £2,020 (monthly) then 50% on the rest |
We can take up to 2 deductions from your pay. The second one is calculated as a percentage of what's left of your pay after the first deduction has been made.
We will take money every month until you've paid your debt.
Tell us if you change or lose your job
You must tell us by email straight away.
Email: revenues-baillifs@royalgreenwich.gov.uk
Instruct an enforcement agent (bailiff) to collect your debt
When we pass your debt to an enforcement agent you must contact them directly to discuss it. We cannot cancel enforcement action once they have your debt.
The enforcement agent will add extra costs to your debt.
There are 3 stages of enforcement with a cost for each.
This table shows the cost at each stage. If the debt is above £1,500 the enforcement agent will add a percentage is on top of the fixed fee.
| Enforcement stage | Enforcement action | Fixed fee per Liability Order | Percentage fee if the debt is over £1,500 |
|---|---|---|---|
| Compliance | All activities relating to enforcement, including things like contacting you and issuing an enforcement notice. This stage starts when they receive the liability order from us, until the enforcement stage starts. | £75 | 0% |
| Enforcement | This is when they visit you and take control of your goods. If you have not made a payment arrangement with them, they'll add the fixed fee at this stage plus 7.5% if the debt is over £1,500. | £235 | 7.5% |
| Sale | This is when they visit you to remove the goods they took control of at the enforcement stage. They'll add the fixed fee at this stage plus 7.5% if the debt is over £1,500. | £110 | 7.5% |
Secure your debt against your property
We can apply to the court for a Charging Order if both of these apply:
- you own all or part of your property
- your Council Tax debt is more than £1,000
We'll add any extra costs to your debt.
You cannot sell or remortgage your property without paying your debt in full.
If you cannot pay the outstanding amount before the court date you can call us to discuss setting up a payment arrangement. We will still apply for a Liability Order, and you will have to pay court costs.
If you cannot pay your debt in full, you can email us to discuss setting up a payment arrangement.
Email: revenues-baillifs@royalgreenwich.gov.uk
We'll only remove the Charging Order when you've paid your debt in full.
If you leave your debt unpaid and you receive further Liability Orders, we can apply to the court for an Order for Sale.
This means your property will be sold to repay your debt. The only way to prevent this is to pay your debt in full.
Start bankruptcy or liquidation proceedings against you
We can ask the court to make you bankrupt or have your company wound up if you owe more than £5,000.
You will get a statutory demand giving you 21 days to pay your debt in full.
If you do nothing, we will apply to the court to make you bankrupt or wind up your company.
Read about what happens if we apply to make you bankrupt (GOV.UK).