The legislation establishes a fixed fee of £3 for the application for a Liability Order for Council Tax. However, councils typically charge taxpayers over £125 for each application as costs.

Councils often submit applications for Liability Orders in large batches, benefiting from economies of scale. For instance, a council employee may apply for 1000 liability orders at a magistrates court, a procedural process that takes less than 30 minutes. Consequently, it is improbable that the total actual cost to the council exceeds £12,500.

This practice was contested in the High Court in the case of Rev P Nicholson vs. Tottenham Magistrates and Haringay Council 2015.

The court ruled:

If you have been billed an amount exceeding £3 for the liability order, you have the option to contest it or request a refund to a specified bank account. If the council is unable to justify its costs surpassing £3 for the application of the Liability Order, you have grounds for challenge.

Regulations governing council tax enforcement do permit the council to include its reasonably incurred costs for applying for the Liability Order.

The case of Ewing vs Highbury Corner Magistrates and LB Camden 2015 quashed a liability order because:

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If the refund is not provided, you have the option to reclaim it, deducting the £3 statutory charge, making a claim.

The Law:

Regulation 34(7) of the Council Tax (Administration and Enforcement) Regulations 1992 states:

Schedule 1(5) of the Magistrates’ Courts Fees Order 2008 provides: