There is no set amount of time someone can go without paying Council Tax as the consequences of not paying can vary depending on the country or region in question. However, failure to pay Council Tax can result in serious consequences, including legal action, asset seizure, and even imprisonment. It's important to pay Council Tax on time and in full, and if you're struggling to pay, to contact your local authority for assistance.
Council Tax is a monthly fee almost every adult in rented or owned accommodation must pay to their local authority every month to fund the provision of local services.
But what exactly is Council Tax and how long can someone legally stay at an address without paying it?
In this guide, we’ll cover everything you need to know from what Council Tax is and how Council Tax works to how to qualify for a Council Tax reduction and what happens if you have unpaid Council Tax bills.
What is Council Tax?
Council Tax is a monthly fee homeowners and tenants over the age of 18 must pay to their local council for the funding of local services and amenities they use on a regular basis such as rubbish collection, road maintenance and street lighting.
The total annual amount is typically split over the course of 10 months starting in April before a two-month break in February and March.
How much Council Tax you must pay is determined by your local tax office and depends on a number of key factors:
- Your personal financial circumstances
- Which of the eight Council Tax bands your property falls under
- How much your local council needs to fund its services
How does Council Tax work?
When you move into a property (rented or owned), you will usually be sent a bill outlining your full Council Tax bill for the year ahead and when each Council Tax payment should be made.
Payment will typically be required on a monthly basis through online banking, bank transfer or over the phone but it may be possible to pay the total annual amount in a single lump sum if you wish.
If you have recently moved to a different council area, you may also need to get in touch with both your former and current local authorities to inform them of your change of address. This can prevent you from being chased for payments you are not liable to pay and ensure you are paying for the correct Council Tax band.
How long can someone stay at a property without paying Council Tax?
Because every case is unique, there is no right answer for how long someone can stay at an address without paying Council Tax. However, there are some things you should be aware of.
For example, if someone is living with you on a temporary basis and pays Council Tax on their own rented or owned property, they are not liable for Council Tax for your home for the duration of time they live with you.
Similarly, if your guest is only staying on a short-term basis (e.g. a couple of nights), there is no need for them to pay Council Tax towards your property.
However, if you receive a 25% single-person discount for living alone and someone moves into your property, you will no longer qualify for a reduction in your Council Tax and must inform your local council that you have a lodger living with you as soon as possible.
How do I qualify for a Council Tax exemption?
Under some circumstances, it may be possible to qualify for a Council Tax exemption which means you are not entitled to pay Council Tax. You will be exempt if your property is:
- Occupied entirely by students
- Used as armed forces accommodation
- Occupied solely by people under the age of 18
- Unoccupied due to major structural or repair work being carried out
- Unoccupied and part of an estate owned by someone that has died
- Unoccupied and is in the process of being repossessed
How do I qualify for a Council Tax reduction?
Because a typical Council Tax bill is based on two adults living at the property, you may be able to qualify for a Council Tax discount if any of the following applies to you:
- You are the sole adult living at your address
- You or the person you live with is on a low income (known as Council Tax support)
- You own another property
- You live with a disabled person
If you have a question about your Council Tax payments or think your monthly payments have been calculated incorrectly, you must get in touch with your local council as soon as possible.
Do I need to pay Council Tax if I live with someone who is exempt?
If you are liable to pay Council Tax but you live with someone who is exempt, the property won’t be exempt from Council Tax and you will still receive a bill. However, you may qualify for a discount.
For example, if you live with a full-time student but you are in full-time employment, you will more than likely only be liable for 75% of your Council Tax bill. This is because there is only one eligible adult living at the property and the other person is classed as a disregarded person. This essentially means they are not counted as living there whilst Council Tax is being worked out.
However, if you are in full-time employment and live with a student and someone in full-time employment, the people in full-time employment will be responsible for 100% of the Council Tax bill unless one of you qualifies as a disregarded person.
What happens if I have unpaid Council Tax bills?
With the cost of living steadily rising, millions of households have fallen behind on their Council Tax payments and, as a result, have ended up with Council Tax debt (also known as Council Tax arrears).
When this happens, your local authority may take legal action to recover the money they are owed which can include sending bailiffs to your address, taking money straight from your wages through an attachment of earnings or instructing court-ordered debt collectors to recover the debt. Because Council Tax is classed as a priority debt, it must also be paid before non-priority debts such as credit cards, bank or building society loans and payday loans.
However, there are several debt solutions out there that can help you repay your unpaid Council Tax and start to build a better relationship with your finances such as an Individual Voluntary Arrangement (IVA).
