Pay Council Tax arrears DIRECT to the Council

Pay (or tender) the council tax arrears to the council and the enforcement power ends.

The Law:

Section 17(1) of Schedule 4 of the Local Government Finance Act 1992 states:

> 17(1)Regulations under paragraph 1(1) above may provide that in a case where—

(a)proceedings under the regulations have been taken as regards the recovery of any sum mentioned in paragraph 1(1) above; and

(b)the outstanding amount is paid or tendered to the authority to which it is payable;

the authority shall accept the amount, no further steps shall be taken as regards its recovery, and any person committed to prison in pursuance of the proceedings shall be released.

(2)The outstanding amount is an amount equal to the sum concerned or to so much of it as remains outstanding (as the case may be). (3)In a case where costs and charges are relevant the outstanding amount shall be treated as augmented by a sum (of a prescribed amount or an amount determined in accordance with prescribed rules) in respect of costs and charges incurred in the proceedings up to the time of payment or tender.

Regulation 45 of the Council Tax (Administration and Enforcement) Regulations 1992 states:

Distress

(1) Where a liability order has been made, the authority which applied for the order may levy the appropriate amount by distress and sale of the goods of the debtor against whom the order was made.

(2) The appropriate amount for the purposes of paragraph (1) is the aggregate of—

(a)an amount equal to any outstanding sum which is or forms part of the amount in respect of which the liability order was made, and

(b)a sum determined in accordance with Schedule 5 in respect of charges connected with the distress.

(3) If, before any goods are seized, the appropriate amount (including charges arising up to the time of the payment or tender) is paid or tendered to the authority, the authority shall accept the amount and the levy shall not be proceeded with.

(4) Where an authority has seized goods of the debtor in pursuance of the distress, but before sale of those goods the appropriate amount (including charges arising up to the time of the payment or tender) is paid or tendered to the authority, the authority shall accept the amount, the sale shall not be proceeded with and the goods shall be made available for collection by the debtor.

(5) The person levying distress on behalf of an authority shall carry with him the written authorisation of the authority, which he shall show to the debtor if so requested; and he shall hand to the debtor or leave at the premises where the distress is levied a copy of this regulation and Schedule 5 and a memorandum setting out the appropriate amount, and shall hand to the debtor a copy of any close or walking possession agreement entered into.

(6) A distress may be made anywhere in England and Wales.

(7) A distress shall not be deemed unlawful on account of any defect or want of form in the liability order, and no person making a distress shall be deemed a trespasser on that account; and no person making a distress shall be deemed a trespasser from the beginning on account of any subsequent irregularity in making the distress, but a person sustaining special damage by reason of the subsequent irregularity may recover full satisfaction for the special damage (and no more) by proceedings in trespass or otherwise.

(8) The provisions of this regulation shall not affect the operation of any enactment which protects goods of any class from distress.

(9) Nothing in the Distress (Costs) Act 1817(1), as extended by the Distress (Costs) Act 1827(2), (which makes provision as to the costs and expenses of the levying of certain distresses) shall apply to a distress under this regulation.

If the council REFUSES the money tendered, the enforcement power still ends.

The bailiff cannot take a further enforcement step.

Official Guidelines:

Paragraph 31 of the 2014 guidelines state:

Enforcement agents must not seek to enforce the recovery of fees where an enforcement power has ceased to be exercisable.

There is one catch. You must give the bailiff a notice telling them the amount outstanding has been paid to the council.

Otherwise the bailiff is not liable if he takes an enforcement step..

The Law:

Paragraph 59(2) of Schedule 12 of the 2007 Act states:

(2) The enforcement agent is not liable unless he had notice, when the step was taken, that the amount outstanding had been paid in full.

Here is a template email and text message to give notice to the bailiff company and the bailiff the claimant has been paid.

Procedure:

Make a cheque payable to the name of the council for the amount outstanding - the sum on the liability order plus £75.

Enclose a note giving references and what this payment is for.

Make it clear this is to pay off the ARREARS and not the current year's council tax.

Take a photo of the cheque and note.

Post it to the council by and get a certificate of posting. Do not use signed-for, the recipient may refuse to sign.

Send the bailiff company an email and the bailiff a text message (template above), telling them the amount outstanding has been paid to the claimant. Keep a screenshot of the text message and the email

Keep safe,

Photo of the cheque and the note
Certificate of posting
Screenshot of the text message to the bailiff
Screenshot of the email to the bailiff company

It is the practice of some councils to return a cheque un-banked. This does not revive the enforcement power. It is an effort to protect the financial interests of the bailiff company. Take steps to protect your goods.

If a bailiff takes an enforcement step and money or goods are taken, you can bring an action for breach of Paragraph 6.

The Law:

Paragraph 6 of Schedule 12 of the Tribunals, Courts and Enforcement Act 2007 (the 2007 Act) states:

6(1)For the purposes of any enforcement power the property in goods of the debtor ceases to be bound in accordance with this paragraph.

2)The property in any goods ceases to be bound—

(a)when the goods are sold;

(b)in the case of money used to pay any of the amount outstanding, when it is used.

(3)The property in all goods ceases to be bound when any of these happens—

(a)the amount outstanding is paid, out of the proceeds of sale or otherwise;

(b)the instrument under which the power is exercisable ceases to have effect;

c)the power ceases to be exercisable for any other reason.