Council tax arrears: what happens if you miss payments

Missing council tax payments triggers a formal process that can lead to court action and bailiffs.

What happens if you miss a council tax payment: timeline

Council tax is usually paid in 10 monthly instalments (April to January). If you miss a payment, the council follows a strict process:¹

Stage 1: Reminder notice (7 days)

If you miss a payment, the council sends a reminder notice giving you 7 days to pay the missed instalment. If you pay within 7 days, you can continue paying monthly as normal.

If you miss a second payment later in the year, you'll get another reminder (you get up to 2 reminders per year before the council escalates).

Stage 2: Final notice (full year's balance due)

If you don't pay within 7 days of the reminder, or if you miss a third payment, the council sends a final notice demanding the full year's balance immediately. You lose the right to pay monthly and must pay the entire remaining bill in one lump sum (usually within 7 days).

Example: your annual bill is £1,500 (£150/month). You've paid April-June (£450). If you miss July and don't pay the reminder, the council demands the remaining £1,050 in full.

Stage 3: Court summons

If you don't pay the full balance, the council applies to the magistrates court for a liability order. You'll receive a court summons and must attend court (or respond in writing). The court hearing is usually 2-4 weeks after the summons is issued.

At court, the council proves you owe the money and the magistrate grants a liability order. You'll have to pay:

• The outstanding council tax
• Court costs (typically £50-£100)

You can still set up a payment plan at this stage, but you'll need to negotiate with the council. If you don't attend court or respond, the magistrate will grant the liability order in your absence.

Stage 4: Bailiffs, wage deductions, or charging order

Once the council has a liability order, they can use enforcement methods to collect the debt:

• Bailiffs (enforcement agents): The council instructs bailiffs to visit your home and seize goods to sell at auction to cover the debt
• Attachment of earnings: The council orders your employer to deduct the debt from your wages (typically £20-£100/month depending on income)
• Deduction from benefits: If you're on Universal Credit, Jobseeker's Allowance, or Pension Credit, the DWP deducts the debt at source (typically £3.70/week or 5% of the standard allowance)
• Charging order: The council applies for a charging order on your property (the debt is secured against your home and must be paid when you sell)

Bailiffs add extra fees (visit fees £75, enforcement fees £235+). You'll end up paying significantly more than the original bill.²

Court summons: what to do

If you receive a court summons, do not ignore it. You have 3 options:

1. Pay the full amount: If you can pay the full balance before the court date, the summons is withdrawn (you still pay court costs)
2. Contact the council and set up a payment plan: Most councils will agree to a payment plan if you contact them before the court date (e.g., £100/month). The summons may still go ahead, but the council will ask the magistrate to adjourn if you're cooperating.
3. Attend court and explain your circumstances: If you can't pay, attend court and explain why (e.g., lost job, illness, caring responsibilities). The magistrate may give you more time to pay or set a lower payment plan. Bring evidence (bank statements, benefit letters, payslips).

Do not ignore the summons. If you don't attend or respond, the magistrate will grant the liability order and the council will send bailiffs or deduct from your wages without further warning.

Bailiffs: what they can and cannot do

If the council sends bailiffs (enforcement agents) to collect the debt, they can:

• Visit your home and ask to come in (you don't have to let them in on the first visit)
• List your goods (TVs, laptops, furniture, vehicles) and give you a deadline to pay
• Return and seize goods if you don't pay (they need a warrant or your permission to enter on the first visit, but can force entry on subsequent visits if you don't cooperate)
• Sell seized goods at auction to cover the debt

Bailiffs cannot:

• Take essential items (cooker, fridge, washing machine, clothing, bedding, tools needed for your work)
• Take goods that don't belong to you (e.g., your partner's laptop, rented TV, items on finance)
• Force entry on the first visit (they can only enter if you let them in or if they have a warrant)
• Visit between 9pm and 6am or on Sundays
• Use physical violence or threats

If bailiffs visit, ask for ID and a breakdown of the fees. Check the fees are correct (visit fees, enforcement fees, removal fees). Complain to the council if bailiffs act unlawfully (use force, take essential items, overcharge).

Deductions from wages or benefits

If the council gets a liability order, they can apply for an attachment of earnings order (deduct from your wages) or deduction from benefits:

• Attachment of earnings: Your employer deducts a percentage of your wages and sends it to the council. Deduction rates depend on your income (typically £20-£100/month). You cannot refuse (your employer is legally required to comply).
• Deduction from benefits: If you're on Universal Credit, the DWP deducts £3.70/week or 5% of your standard allowance (whichever is higher). You cannot refuse.

Deductions continue until the debt is cleared. If you change jobs, the council can apply for a new attachment of earnings order with your new employer.

Payment plans: how to set up

If you're struggling to pay council tax, contact your council immediately and ask for a payment plan. Most councils will agree to spread the debt over 12 months or longer if you:

• Contact them before the court summons (councils are more flexible if you contact them early)
• Provide evidence you're on a low income (benefit letters, payslips, bank statements)
• Stick to the agreed payment plan (if you miss payments on the plan, the council will revert to enforcement)

Example payment plan: you owe £1,050 in arrears. The council agrees to £87.50/month for 12 months. You continue paying the current year's council tax (£150/month) on top, so total payments are £237.50/month.

If you can't afford the proposed payment plan, ask the council to reduce it. Explain your income and outgoings and propose what you can afford (e.g., £50/month instead of £87.50).

Council Tax Reduction if you're struggling

If you're on a low income, apply for Council Tax Reduction (income-based support that reduces your bill by up to 100%). Council Tax Reduction can be backdated up to 3 months in some councils, so you may get a refund for recent arrears.

Council Tax Reduction is available if you're:

• On Universal Credit, Jobseeker's Allowance, Income Support, Pension Credit, or other means-tested benefits
• Working but on a low income (councils use an income threshold based on household size)

Apply through your council's website (search 'Council Tax Reduction [council name]'). Processing takes 4-6 weeks. If approved, your future bills are reduced and you can set up a payment plan for arrears at the reduced rate.³

Avoiding council tax arrears

To avoid arrears:

• Pay by Direct Debit: Set up a Direct Debit so payments are automatic (you can't forget or miss a payment)
• Spread payments over 12 months: Most councils let you pay over 12 months instead of 10 (smaller monthly payments, easier to budget)
• Apply for discounts and exemptions: Check if you qualify for single person discount (25% off), student exemption, severely mentally impaired exemption, or Council Tax Reduction
• Contact the council early: If you know you'll struggle to pay, contact the council before you miss a payment. They're more likely to offer a payment plan if you contact them early.

Can you go to prison for council tax debt?

In England and Wales, you cannot go to prison for council tax debt. The council can send bailiffs, deduct from wages, or apply for a charging order, but they cannot send you to prison.

In Scotland, you can be imprisoned for up to 90 days if you refuse to pay after a court order (called 'wilful refusal to pay'). This is rare and only happens if the court believes you can afford to pay but are deliberately refusing.

Last reviewed: 2026-05-18