Council tax arrears in Scotland

If you fall behind with council tax in Scotland, the council can get a summary warrant, which adds 10% to what you owe and lets sheriff officers enforce the debt without a court hearing. You will usually get a charge for payment giving you 14 days to pay or ask for time to pay. After that, your wages or bank account can be arrested.

What happens when I miss a council tax payment?

Council tax is a priority debt, which means not paying it can cause serious problems. mygov.scot describes the usual steps:

1. Reminder. The council sends a reminder asking you to bring your payments up to date within 7 days.
2. Loss of instalments. If you do not pay within 7 days, you have to pay the full remaining balance for the year, and you get another 7 days to do so.
3. Second missed payment. You will usually get another reminder.
4. Final notice. If you miss a third payment, or miss a payment after 31 December, you get a final notice telling you to pay the whole remaining balance in one go.

Water and sewerage charges are collected with council tax, so these can be recovered the same way.

The earlier you contact the council, the more options there are. It may let you pay in smaller amounts.

What is a summary warrant?

A summary warrant is a type of court order that councils mostly use to collect council tax arrears. Unlike most court orders for debt, there is no court hearing and no chance to defend it beforehand.

The summary warrant states what you owe: the arrears plus a charge equal to 10% of that amount. Sheriff officer fees may be added on top. A sheriff officer delivers the warrant to your home, or puts it through your letterbox if you are out.

A summary warrant does not usually show on your credit file.

What happens after the summary warrant?

The charge for payment

The council must first send you a charge for payment, which gives you 14 days to pay the debt in full before further action. Read more about what a charge for payment means.

Asking for time to pay

You have the right to ask the court for time to pay. mygov.scot says you must do this before the 14 days are up to stop further action. Citizens Advice Scotland also suggests contacting the sheriff officers to ask if you can pay by instalments; their details are on your copy of the summary warrant.

Deductions from benefits

If you cannot agree a payment with the sheriff officers, Citizens Advice Scotland says the council may ask for deductions from certain benefits, including Universal Credit, Pension Credit, Employment and Support Allowance, Jobseeker’s Allowance and Income Support.

Arrestments and attachment

If you do not pay by the date on the charge, the council can instruct sheriff officers to:

• arrest your wages through your employer (an earnings arrestment)
• arrest your bank account, including a joint account, above a protected £1,000 (see bank arrestment)
• take belongings, although anything inside your home needs a further court order

Could I pay less council tax?

Check you are paying the right amount now, so the arrears do not grow. mygov.scot says you may get a discount, reduction or exemption if you:

• are a student
• have a disability
• are on a low income
• are the only adult in your home who has to pay (the single adult discount)

Help for people on a low income comes through the Scottish Government’s means-tested Council Tax Reduction scheme. Ask your council whether you qualify and how to apply.

It is also worth checking you are liable at all. Citizens Advice Scotland says, for example, that the owner rather than the occupier can be liable in some shared or temporary housing, and that some properties are exempt, such as student halls of residence or a home left empty after someone has died. If you live with a partner or another liable adult, you are usually jointly liable, which means each of you is responsible for the whole bill.

Can council tax arrears go into a debt solution?

Yes, in the formal Scottish solutions, but only the arrears. Your ongoing council tax bill must still be paid separately.

• Debt Arrangement Scheme (DAS): you can include missed council tax payments from before your debt payment programme was set up. Current council tax bills are ongoing payments and cannot be included. See the Debt Arrangement Scheme.
• Protected trust deed: council tax arrears run up before you sign can be included. Ongoing council tax cannot. A trust deed has fees, affects your credit rating for 6 years and puts your name on the public Register of Insolvencies. Homeowners may need to release equity, and if the trust deed fails, creditors can pursue you again. See which debts can go into a trust deed.
• Sequestration (bankruptcy) and informal plans are other options.

A moratorium on diligence can also stop new enforcement for 6 months while you apply for a solution. It does not freeze interest or charges.

Which route, if any, fits depends on your whole situation, so an adviser needs to look at everything before you decide.

How long can council tax arrears be chased?

Council tax is not covered by the usual 5-year time limit that applies to most debts in Scotland. Citizens Advice Scotland says the time limit for a council to apply to court to recover council tax arrears is 20 years from the final demand, or from the last time you or someone acting for you acknowledged the debt. Schedule 1 of the Prescription and Limitation (Scotland) Act 1973 lists council tax, and any surcharge, fees or expenses of enforcing it, among the debts the 5-year rule does not apply to. So do not assume old council tax arrears have lapsed.

Official sources

• mygov.scot: summary warrants and council tax arrears
• mygov.scot: Council Tax guide, including ‘If you cannot pay’ and ‘Discounts, exemptions and reductions’
• Citizens Advice Scotland: dealing with council tax arrears
• Citizens Advice Scotland: check if you have to pay a debt
• mygov.scot: debts you can include in a DAS