Can You Write Off Council Tax Debt in the UK?

Not very many people will be familiar with the term council tax. Now, you might be asking what is council tax; it’s a tax imposed on certain properties, especially dwellings.

The thing is, not everyone has a clue what council tax is. The reason is, council tax is imposed only on people in a few select places in the UK. Only three places in fact: England, Scotland, and Wales conduct this local taxation system.

Pay your council tax

If a person lives in two houses, they must pay council tax for both the houses. Even tenants must pay council tax, or at least share the council tax that has to be paid by their landlord. A range of eight “bands” will be assigned, depending on the value of the property. All the eight bands, which are coded by letters A to H in England and Scotland, and A to I in Wales, have a fixed amount and people need to pay the set council tax depending on which band their property belongs to.

Living in these three places might seem a little difficult compared to other countries. Paying council tax can be a task for people with lower income. And the toughest part is whoever has a roof over their head will have to pay council tax. Avoiding or not paying council tax is near to impossible so council tax debt has become as common as council tax. Both are two sides of the same coin.

Council Tax Deadline

In the month of April, council tax gets issued. The instalments are spread over ten months which is from April to January but if anyone wants another two months to pay tax instalments then they can apply. Now, is council tax debt written off possible? Yes, it can be written off, but only after fulfilling a few conditions.

But before we discuss council tax debt reduction, let me give a brief idea of how the amount of tax varies from one person to another.

As mentioned earlier, exemption of council tax is impossible unless you are under 17 or a full-time student or unemployed or low income. In these cases, one could be eligible for discounts. Council tax is per household, so if there’s only one employed person in the household then he might get a 25% discount if he meets the requirements set out by council. A full time student might get a 100% discount. People who’re low income can also get council tax reduction, and may get up to a 100% discount.

Indeed, the range of discount varies depending on the person and their circumstances.

Council tax bill - can it be written off?
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Council Tax is the Law

Any law abiding citizen will try their level best to follow the rules where they live. This tax is set out to benefit the public, so don’t try to avoid paying council tax if you are living in areas where it’s collected.

Pay your council tax, as there are so many facilities available to make the payment easy. You must pay your council tax at the beginning of the month. If you fail, the council will send you two reminders. After that, if you’re unable to pay, the council will send you another notice, then a summons. If you ignore them, you’ll be sent a liability order, and after that council will have the legal right to collect the debt from you.

Can Council Tax be Written Off?

Depending on the council, council debt can be written off through an Individual Voluntary Arrangement or IVA. IVA is a way to pay certain debts spread out on a monthly basis, and council tax debt is included.

First, check out which councils are willing to approve the IVA proposal. Unless you are paying your council tax in regular instalments, interest will be applied. You can’t escape paying taxes. If you’re in arrears on paying your council tax debt, contact them now and arrange a way pay it off or your credit will be destroyed an your assets, such as your home could be seized.

About the Author: As a Blogging and SEO expert, Tasnim Siddiquee specializes in reporting the latest news, helpful tips and reliable resources, as well as providing SEO & Guest blogging advice. He has significant experience with the topic of SEO & digital marketing, and has spent several years exploring topics like copywriting, content marketing and social media management.