Deduction from earnings for CTax error 12 years ago

[Redrooster]

Hello,
I am a part time locum healthcare worker, recently widowed and expecting our second child.

During summer 2019, within weeks of my partner's suicide, I received notification out of the blue from the London borough I lived in 12 years ago, notifying me they would be making deductions from my wages.

I have kept all correspondence. The debt was for a substantial overpayment, which they admitted was due to their error, while I was receiving disability benefits. In 2009 I moved out of London and got back into work, but they began pursuing me for the debt. I negotiated an agreement to pay off a sum each month, and did this for several months, before receiving a statement that took none of my payments into account.

I received no response regarding where my money had gone, so stopped the direct debit, and in 2011 I changed address again, returning to university.

As I recall, I received a letter from the council in question in 2018 to remind me of the debt, but it was vague and some of my personal details were incorrect. I contacted them to enquire whether the correspondence was genuine, but the person who responded refused to send further information, so I ignored it and no more letters were received until the notification of the deduction.

Now I have just received my first (minimal) statutory maternity payment, but over half of it has been taken for tax, NI, Student Loan, and the deduction for council tax.

Please can someone tell me where I can go for help? I visited CAB a few times since I got the deduction letter, but surprisingly they had no advice on this or much else for my situation. I am desperately trying to avoid us plunging into debt, but am not eligible for financial help and the additional stress is overbearing.

Thank you in advance.

[lgfa92]

I visited CAB a few times since I got the deduction letter, but surprisingly they had no advice on this or much else for my situation.

CAB will only cover the basic points of council tax, not anything which gets technical (Council tax is my area of practice, I see lots of cases where CAB have failed to help because it's outside their area of knowledge and experience.).

The debt was for a substantial overpayment, which they admitted was due to their error, while I was receiving disability benefits

The overpayment would have been council tax benefit - this would then have been removed from the council tax account, leaving the equivalent amount of council tax due.

Until (and unless) a correction is made to the council tax account to credit council tax benefit back on to the account then the council tax remains due - this is settled law. The error lies with council tax benefit and not council tax itself - at the moment the council tax account has an amount due, however caused, and they are entitled to recover it on this basis.

Now I have just received my first (minimal) statutory maternity payment, but over half of it has been taken for tax, NI, Student Loan, and the deduction for council tax.

I've just checked the wording of the legislation to double check and SMP falls through the cracks in respect of council tax attachment of earnings.It isn't one of the disregarded incomes.

Providing the liability order was granted within 6 years of the amount becoming due then the amount can be recovered for as long as the debt remains due. There may be room for dispute but it would require a proper look at the whole situation of what has happened.

[Redrooster]

Thank you for your reply.

I was directed to CAB by other agencies, including the letter informing me of the deduction. As stated, I just don't know where to turn at the moment, but it is understandable that CAB can't help much.

I do apologise, it was indeed a Housing Benefit overpayment, not council tax!

Would the liability order be in the form of a magistrates court summons? As I do not believe I received one. Having checked the date, the only previous contact I received was almost exactly a year before the deduction order. That was in June 2018, requesting I contact the council pending 'further action' to recover the debt.

Some months prior to that, I discovered I had been a victim of identity fraud at the address connected to the overpayment. Additionally, some years before that I was persued for Council Tax that was allegedly owed by two of my student co-tenants who were foreign nationals and out of contact...hence some of my confusion.
The name of the addressee on the council's letter in 2018 did not match mine exactly (as it had before), and they refused to verify any details of the account when I explained this to them, which is why I was, perhaps foolishly, wary of making any further contact to resume payments- especially since they claimed no record of the previous direct debits. I reasoned to wait for a further letter or notification of intended action.

Is there any way I can appeal the present deduction, under my current circumstances? Or altogether, as I wasn't offered the opportunity to defend myself in court, and it appears the order was not made until a decade later? Where can I go for further advice or help please?

I'm sorry for the confusion. I'm due to give birth any moment now and struggling a bit.