Gravesham Borough Council has warned council tax evaders that they are in its sights after successfully enforcing the sale of a property on which almost £36,000 of outstanding payments was owed.
The debt owed and legal costs were recovered from the proceeds of the sale of the Northfleet property, with the balance going back to the home’s former owners.
The council is pursuing another 109 high value cases, with the potential of recovering around £700,000 of council tax debt.
“Forcing the sale of someone’s home is always a last resort,” said Cllr Narinderjit Singh Thandi, Gravesham Borough Council’s Cabinet Member for Performance and Administration.
“However, in cases where an owner has resisted all other attempts by us to engage with them to recover what is owed, we will pursue this ultimate sanction – it’s only fair on the majority of householders who pay their council tax that we do so.
“We rely on council tax to pay for the vast majority of services we provide. Like many local authorities around the country, we face budget challenges, and every penny counts.
“Of the total bill you pay, we here at Gravesham only keep about 11% with the rest going to Kent County Council, the Kent Police and Crime Commissioner, and Kent Fire and Rescue Service.”
Cllr Thandi added that the council differentiated between those who cannot pay their bill and those who won’t pay, saying it recognised that many families in the borough faced financial hardship themselves.
He said: “I would encourage anyone who is struggling to pay their bill to contact as soon as possible so we can investigate whether they are claiming all the benefits or discounts they are entitled to.”
Using an online tool called the Low-Income Family Tracker (LIFT), the council is proactively identifying households at risk of falling into poverty and helping them secure financial support.
Using LIFT, it has increased Pension Credit take-up, resulting in an extra income to Gravesham residents of more than £330,000 a year.
The council has also proactively awarded £1 million to local families, made up of £624,000 in Household Support Fund grants; £130,000 of Council Tax Financial Support; and discretionary energy scheme payments to 6,152 households totalling £248,743.
However, Cllr Thandi added: “Where it is clear that a council taxpayer can afford to pay but has chosen not to, then as demonstrated by this latest case, we will use all legal powers available to us to collect unpaid council tax.”
If a resident owes unpaid Council Tax, the council can apply for a liability order, and if granted, the council’s legal costs may be added to the amount owed.
Once a liability order has been granted, a range of options are open to the council, including:
- Asking an employer to deduct unpaid Council Tax directly from the householder’s wages.
- Applying to take money from benefits such as Employment and Support Allowance, Income Support, Jobseeker’s Allowance, Pension Credit, or Universal Credit.
- Appointing bailiffs to seize property to recover the debt. Their costs can be added to the total amount owed.
- Further court proceedings. Refusing to pay without a valid reason could result in up to three months’ imprisonment
- Apply for a Charging Order. A Charging Order gives the council security for the debt as it is secured like a mortgage on a property and in extreme cases can force the sale of the property.
For more information on help available if you are struggling to pay your Council Tax, visit https://www.gravesham.gov.uk/council-tax-help or call 01474 337000.