Council Tax issue Advice most appreciated

[andyb53]

I have had a letter from my local Council telling me that I was wrongly given the single person discount from 2008 ~ 2010 and they now say I owe them money! Can they demand money for an alleged debt from 10 years ago? Is there not a limit to the time allowed for recovery of a debt? I was owed money from 2014 when I overpaid. When I tried to recover it, the Council informed me I could only claim any rebate going back the previous 12 months How can this be fair? Advice much appreciated.

[charitynjw]

Hi

Are there any outstanding liability orders on any of the years?


In England, Wales and Northern Ireland:

"For most types of debt in England, Wales and Northern Ireland, the limitation period is six years. This applies to most common debt types such as credit or store cards, personal loans, gas or electric arrears, council tax arrears, benefit overpayments, payday loans, rent arrears, catalogues or overdrafts."

https://www.stepchange.org/debt-info...rred-debt.aspx


"

[lgfa92]

I have had a letter from my local Council telling me that I was wrongly given the single person discount from 2008 ~ 2010 and they now say I owe them money!

A council can review and adjust a discount at any point - the 6 year limit would unfortunately not apply in this case*.

I was owed money from 2014 when I overpaid. When I tried to recover it, the Council informed me I could only claim any rebate going back the previous

It depends exactly what you mean by owed money - if you mean for claiming council tax benefit/reduction then the time limits are specified in law - something which they are not for council tax. If it was a discount or exemption then the councils do try and refuse backdating, often because they don't appreciate the latest tribunal decisions ** or because they have their 'policy'.

Councils reviewing discounts/exemptions retrospectively is something I'm starting to see more and more often. Most of my clients that come to me at the moment are coming to ask that removal of discounts and exemptions be challenged. It seems that many councils are starting to be far more in-depth when they look at council tax accounts and some are perhaps too keen to act before they've fully looked at the situation.


*The 6 year limit on obtaining a liability order is 6 years from the date the amount becomes due. It, even if issued years later, only becomes due from the point a demand notice is issued so the 6 years would start from the date the new demand notice is issued.

** Unless it was a disabled band relief, in which case the case law can be sightly different.