Attachment of Earnings / Benefits
If the Council Tax debt that you owe is subject to a Liability Order then the Council may issue an Order to your employers or Benefits Agency to take direct deductions from your Benefits/wage/salary until the debt is clear. The Council may issue a maximum of 2 Orders for Earnings and 1 Order for Benefits.
The deduction rate for Attachment of Earnings Order is set by legislation and is based on your net earnings; you may view the deduction rate here.
The deduction rate for Attachment of Benefits is set by Central Government and is reviewed annually. Deductions are generally 5% of the basic standard allowance, which currently works out at £3.70 per week. Deductions from Universal Credit for a single person aged over 25 are set at £15.89 per month.
Charging Orders
If the Council Tax debt that you owe is subject to a Liability Order then the Council may apply to the County Court for a Charging Order to be placed on your property.
Should this action be necessary the Council will instruct its appointed solicitors to make application in the County Court. You will incur additional costs and court fees at that point. Please be aware interest is charged at an annual rate of 8%pa. This is accrued and added to your outstanding balance and must be paid before the debt is legally settled.
Details of the Council’s charge will appear on HM Land Registry entry for the property.
Once a Charging Order is granted the Council may go back to Court and take Order for Sale proceedings to force the sale of your property at a price set by the Court. Once the property is sold the Council will recover the debt and all of its costs & interest from the proceeds.
