Pay Council Tax arrears DIRECT to the Council

Submit payment for the outstanding council tax to the local council, and the enforcement authority ceases.


The Law:

Section 17(1) of Schedule 4 of the Local Government Finance Act 1992 states:

> 17(1)Regulations under paragraph 1(1) above may provide that in a case where—

(a)proceedings under the regulations have been taken as regards the recovery of any sum mentioned in paragraph 1(1) above; and

(b)the outstanding amount is paid or tendered to the authority to which it is payable;

the authority shall accept the amount, no further steps shall be taken as regards its recovery, and any person committed to prison in pursuance of the proceedings shall be released.

(2)The outstanding amount is an amount equal to the sum concerned or to so much of it as remains outstanding (as the case may be). (3)In a case where costs and charges are relevant the outstanding amount shall be treated as augmented by a sum (of a prescribed amount or an amount determined in accordance with prescribed rules) in respect of costs and charges incurred in the proceedings up to the time of payment or tender.

Regulation 45 of the Council Tax (Administration and Enforcement) Regulations 1992 states:

Distress

(1) Where a liability order has been made, the authority which applied for the order may levy the appropriate amount by distress and sale of the goods of the debtor against whom the order was made.

(2) The appropriate amount for the purposes of paragraph (1) is the aggregate of—

(a)an amount equal to any outstanding sum which is or forms part of the amount in respect of which the liability order was made, and

(b)a sum determined in accordance with Schedule 5 in respect of charges connected with the distress.

(3) If, before any goods are seized, the appropriate amount (including charges arising up to the time of the payment or tender) is paid or tendered to the authority, the authority shall accept the amount and the levy shall not be proceeded with.

(4) Where an authority has seized goods of the debtor in pursuance of the distress, but before sale of those goods the appropriate amount (including charges arising up to the time of the payment or tender) is paid or tendered to the authority, the authority shall accept the amount, the sale shall not be proceeded with and the goods shall be made available for collection by the debtor.

(5) The person levying distress on behalf of an authority shall carry with him the written authorisation of the authority, which he shall show to the debtor if so requested; and he shall hand to the debtor or leave at the premises where the distress is levied a copy of this regulation and Schedule 5 and a memorandum setting out the appropriate amount, and shall hand to the debtor a copy of any close or walking possession agreement entered into.

(6) A distress may be made anywhere in England and Wales.

(7) A distress shall not be deemed unlawful on account of any defect or want of form in the liability order, and no person making a distress shall be deemed a trespasser on that account; and no person making a distress shall be deemed a trespasser from the beginning on account of any subsequent irregularity in making the distress, but a person sustaining special damage by reason of the subsequent irregularity may recover full satisfaction for the special damage (and no more) by proceedings in trespass or otherwise.

(8) The provisions of this regulation shall not affect the operation of any enactment which protects goods of any class from distress.

(9) Nothing in the Distress (Costs) Act 1817(1), as extended by the Distress (Costs) Act 1827(2), (which makes provision as to the costs and expenses of the levying of certain distresses) shall apply to a distress under this regulation.

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If the council REFUSES the money tendered, the enforcement power still ends.

The bailiff cannot take a further enforcement step.




Official Guidelines:

Paragraph 31 of the 2014 guidelines state:

Enforcement agents must not seek to enforce the recovery of fees where an enforcement power has ceased to be exercisable.
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There's a condition: You must inform the bailiff with a notice confirming the payment made to the council for the outstanding amount.

Failure to do so absolves the bailiff of liability if they proceed with an enforcement action.

The Law:

Paragraph 59(2) of Schedule 12 of the 2007 Act states:

(2) The enforcement agent is not liable unless he had notice, when the step was taken, that the amount outstanding had been paid in full.

Template email and text message: Notify both the bailiff company and the individual bailiff that the claimant's dues have been settled.


Procedure:

Write a cheque addressed to the council, indicating the outstanding amount stated on the liability order plus an additional £75. Include a note with relevant references and the purpose of the payment, clarifying that it is intended for clearing the arrears and not the current year's council tax. Take a photograph of both the cheque and the note.

Mail the cheque and note to the council, ensuring to obtain a certificate of posting. Avoid using signed-for delivery, as the recipient may decline to sign.

Notify the bailiff company via email and the individual bailiff through a text message (using the provided template), informing them that the outstanding amount has been settled with the claimant. Retain screenshots of both the text message and the email for record-keeping purposes.

Keep safe,

Image of the cheque and accompanying note
Certificate of posting
Screenshot of the text message sent to the bailiff
Screenshot of the email forwarded to the bailiff company
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Some councils may opt to return an uncashed cheque, but this action does not reinstate enforcement authority. It serves as a measure to safeguard the financial interests of the bailiff company. Be proactive in safeguarding your possessions.


Should a bailiff proceed with an enforcement action resulting in the seizure of money or goods, you have the option to initiate legal proceedings for a breach of Paragraph 6.


The Law:

Paragraph 6 of Schedule 12 of the Tribunals, Courts and Enforcement Act 2007 (the 2007 Act) states:

6(1)For the purposes of any enforcement power the property in goods of the debtor ceases to be bound in accordance with this paragraph.

2)The property in any goods ceases to be bound—

(a)when the goods are sold;

(b)in the case of money used to pay any of the amount outstanding, when it is used.

(3)The property in all goods ceases to be bound when any of these happens—

(a)the amount outstanding is paid, out of the proceeds of sale or otherwise;

(b)the instrument under which the power is exercisable ceases to have effect;

c)the power ceases to be exercisable for any other reason.