Paying Council Tax Arrears Directly To The Council After Bailiffs

When council tax arrears are settled or offered to the council after the involvement of bailiffs, the enforcement authority granted under the Liability Order is immediately terminated. Consequently, the bailiffs are no longer authorised to recover any fees.

According to Section 17(1) of Schedule 4 of the Local Government Finance Act 1992, upon payment or tendering of the outstanding amount to the council, the council is obligated to accept the payment. Bailiffs are prohibited from pursuing the debtor with further enforcement actions.

Similarly, Regulation 45 of the Council Tax (Administration and Enforcement) Regulations 1992 mandates that before a bailiff can remove the debtor's goods, the council must accept any payment tendered and cannot take control of the goods if the Amount outstanding is paid or tendered.

Furthermore, Paragraph 6(3) of Schedule 12 of the Tribunals, Courts and Enforcement Act 2007 stipulates that bailiffs must cease enforcement actions once their enforcement authority is no longer valid.

Paragraph 31 of the Taking Control of Goods National Standards, published by the Ministry of Justice in 2014, states:

Enforcement agents must not seek to enforce the recovery of fees where an enforcement power has ceased to be exercisable.

The "Amount Outstanding" is defined in Paragraph 50(3) as comprising two parts: the debt specified in the Liability Order and the enforcement-related costs.

Section 62(1) of the Tribunals Courts and Enforcement Act 2007 defines "Enforcement" as the process of taking control of and selling goods to recover a debt.

Regulation 8 of the Taking Control of Goods (Fees) Regulations 2014 specifies that bailiffs may only recover costs that have been "reasonably and actually" incurred.

If the bailiff has not taken control of the debtor's goods, the bailiff may not recover any costs, leaving only the fees, which are distinct from costs as the fees are prescribed in the Schedule of the Taking Control of Goods (Fees) Regulations 2014.

Regulation 3 of the Taking Control of Goods (Fees) Regulations 2014 states bailiffs may recover fees only when using the Schedule 12 enforcement procedures, and Paragraph 13(1) of the enforcement procedures delineates four methods for taking control of goods, including clamping, removal, or entering into a Controlled Goods Agreement.

If the bailiff has not used any of these four prescribed methods to take control of goods and the Amount Outstanding specified on the Liability Order has been paid or tendered, the bailiff may not recover fees.

In 2014, the Ministry of Justice affirmed this interpretation, noting in Paragraph 31 of the Taking Control of Goods National Standards that enforcement agents must not seek to enforce the recovery of fees when the enforcement power has lapsed.

It is important to note that Section 17(1) clarifies that if money is "tendered" to the council, the enforcement power terminates, even if the council directs the debtor to contact the bailiffs confirming that the enforcement power ceases to be exercisable once payment is made or tendered to the council.

Finally, Paragraph 59 of Schedule 12 of the Tribunals, Courts and Enforcement Act 2007 stipulates that a bailiff is not liable for damages he is takes an enforcedment step unless he was given noticed the Amount Outstanding has been paid or tendered to the Council and the enforcement power has ceased.

Therefore, after you paid or tendered the Amount Outstanding to the council, you must give written notice to the bailiff.