Paragraph 5.1 of Schedule 1 to the Magistrates’ Courts Fees Order 2008 specifies that the application fee for a Liability Order is £3. If the council has charged you £125, you may recover the overcharged amount.

Regulation 34(7) of the Council Tax (Administration and Enforcement) Regulations 1992 stipulates that the liability order includes the council tax payable and any amount incurred by the council in applying for the order. Paragraph 5.1 of Schedule 1 to the Magistrates’ Courts Fees Order 2008 prescribes the application fee for a Liability Order is £3.

Councils benefit from economies of scale when applying for Liability Orders in bulk. For example, a council employee can apply for 1,000 Liability Orders in a magistrates' court in under 30 minutes. The total material cost to the council is unlikely to exceed £12,500. The council employee is salaried so the salary should not count as a disbursement for the council.

In the judgment of Rev P Nicholson vs Tottenham Magistrates and Haringey Council (2015), it was noted that it would be impractical for the council to provide a detailed calculation of the actual costs incurred in each case. This lack of transparency raises concerns about fairness in the process.

The judgment in Ewing vs Highbury Corner Magistrates and LB Camden (2015) quashed a liability order because the council failed to provide sufficient information about the £125 costs added to the outstanding amount. The magistrate erred by not enquiring about these costs, thus denying the opportunity to question them.

You may reclaim the overcharged amount by submitting a Stage 1 formal complaint and requesting the council to refund the money into your bank account.