The council charged you more than £3 for the Liability Order
The law sets a statutory charge of £3 for the application for a Liability Order for Council Tax. The council charge over £125 to the taxpayer as costs for each and every application.
Councils apply for Liability Orders in bulk giving them economies of scale. Then a council employee applies for 1000 liability orders at magistrates court, a procedural process taking less than 30 minutes, it is unlikely the total material cost to the council exceeds £12,500.
This was challenged in the High Court in the case of Rev P Nicholson vs. Tottenham Magistrates and Haringay Council 2015.
The court ruled:
If you have been charged more than £3 for the liability order, you can challenge it, or ask them to refund the money to a named bank account of the council is unable to explain its costs exceeding £3 for the application of the Liability Order
Council tax enforcement regulations do allow the council to add its costs reasonably incurred for applying for the Liability Order
The case of Ewing vs Highbury Corner Magistrates and LB Camden 2015 quashed a liability order because:
Ask the council for your money back giving account details to pay the money into, or explain with evidence where and to whom it disbursed the money while applying for the Liability Order.
Take a screenshot of the sent email recording the time they were sent, and exhibit them as evidence.If the money is not refunded, then you can reclaim it, less the £3 statutory charge, in the small claims court.
The Law:
Regulation 34(7) of the Council Tax (Administration and Enforcement) Regulations 1992 states:
Schedule 1(5) of the Magistrates’ Courts Fees Order 2008 provides: