What happens if you don't pay your Council Tax bill
If you do not contact us regarding your Council Tax, recovery action will begin. The steps we take to recover unpaid Council Tax are outlined below.
First Reminder
If you miss a payment, a reminder will be issued giving you seven days to pay. If you don't pay, you will lose the option to pay in instalments and will receive a court summons.
If you are unable to pay in full, please contact an advisor to discuss a possible payment arrangement on 0191 520 5551. Lines are open between 8.30am and 5pm, Monday to Friday.
Second Reminder
If a second payment is missed after the first reminder, a second reminder will be issued with seven days to pay. If you don't pay, you will lose the right to pay in instalments and will receive a court summons.
If a future instalment is missed after two reminders, no further reminders will be sent, and a summons will be issued.
If you are unable to pay in full, please contact an advisor to discuss a possible payment arrangement on 0191 520 5551. Lines are open between 8.30am and 5pm, Monday to Friday.
Final Notice
If you have received a final notice and are unable to pay the balance requested, contact the Council Tax Recovery section immediately to discuss a possible payment arrangement by Direct Debit on 0191 5614388. Lines are open between 8.30am and 5pm, Monday to Friday. You can also complete the Financial Information form to help us assess your situation.
Court summons
If you don't pay a reminder or final notice, you'll receive a court summons with a hearing date. To avoid court, pay the full amount (including summons costs) at least one day before the hearing. Please note card payments may take up to three working days to clear.
If you cannot pay in full but agree a payment plan, the council will still apply for a Liability Order with extra costs added to your bill, but recovery action will be paused while you maintain your payment arrangement.
If you have received a court summons, contact the Council Tax Recovery section immediately to discuss a possible payment arrangement by Direct Debit on 0191 5614388. Lines are open between 8.30am and 5pm, Monday to Friday. You can also complete the Financial Information form to help us assess your situation.
Understanding your Council Tax court summons here we explain how the summons letter is broken down and what it means.
Liability order
If a liability order is granted for unpaid Council Tax, the council can take various actions to recover the debt. Please contact the Council Tax Recovery section immediately as we may be able to offer you a payment arrangement on 0191 5614388. Lines are open between 8.30am and 5pm, Monday to Friday.
Request for information
After court, you may be asked to provide further information. You will have 14 days to pay the full amount including costs or complete the Financial Information form.
If you don't respond, the council may begin criminal proceedings for failing to provide the required information.
Non-compliance
If you don't respond within 14 days, the council may begin criminal proceedings. You'll receive a summons and, if found guilty, could be fined up to £500 plus £150 admin costs. Providing false information can lead to prosecution, up to £1,000 fine, and a criminal record.
Attachment of benefits order
The council can deduct money from your benefits (e.g. Universal Credit, Income Support, Jobseeker's Allowance, Employment Support Allowance, or Pension Credit) to recover unpaid Council Tax.
Attachment of earnings
If you are in work, a set percentage of your wages can be taken and paid to the council. These rates are set by the government. Find out more about the regulations governing an attachment of earnings issued by the council to recover outstanding Council Tax.
Attachment of councillors' allowance
If you are a councillor and receive an allowance, the council will deduct an amount of money from your allowance to pay off your debt.
Enforcement agents
If the debt is not paid in full or a repayment plan is not followed, your account may be referred to an Enforcement Agent, which will incur additional costs.
If your debt is passed to an Enforcement Agent, they will send you a Notice of Enforcement costing £79.00 which will be added to each of your debts. Multiple Liability Orders can be referred to an Enforcement Agent at any one time.
If you have received a Notice of Enforcement, it's important to refer directly to the contact details provided on that document. The telephone number listed there will connect you to the appropriate Enforcement Agent or department handling your case.
If you do not pay your debt plus the additional costs in full, or you do not contact the Enforcement Agent to agree a payment arrangement, an Enforcement Agent will visit your property and a minimum of £247.00 additional costs will be incurred.
If an Enforcement Agent visits your property, they will request full payment or ask you to enter a Controlled Goods Agreement. If no agreement is made, they may remove goods for sale or storage. If you enter an agreement but fail to pay as agreed, the Agent may return to remove goods.
Bankruptcy
If your total debt is more than £5000, the council can begin proceedings to make you bankrupt.
The council will send you a statutory demand requesting you pay your debt in full within 21 days. If you do not pay your debt in full, a bankruptcy petition will be submitted to the court. If the petition is granted:
- Your home could be sold to pay your debt
- Your bank accounts may be frozen
- The official receiver will investigate your affairs
- Your ability to get credit will be affected
The Official Receiver may take control of your spending
Charging Order
If you owe more than £1,000 and own your home, the Council can ask the court to place a legal charge on your property. This means the debt is secured against your home. If approved, the charge is added to your property records. If you sell your home, the debt must be paid from the sale proceeds. If you don't pay, the Council may ask the court to force the sale of your home.
Prison
If you don't pay the Enforcement Agent, the Council may ask the court to hold a 'committal hearing'. This could lead to you going to prison for up to 90 days.
- If you get a court summons, contact the Council and get legal advice straight away.
- If you pay the full amount, you don't need to go to court.
- If you don't pay, you must go to the hearing.
- If you don't go, the court may send someone to arrest you and bring you to court.
Help and Advice
If you are having problems paying your Council Tax or struggling with debt, you can access free confidential and independent advice from a number of advice providers in Sunderland.
Please take this opportunity to bring your payments up to date to avoid recovery action occurring on your account or to speak to an advisor who may be able to offer support to help you to pay your Council Tax. Remember paying by Direct Debit ensures all your payments are made on time, or you can pay online make a payment.