Legal Basis for Council Tax Collection Costs
Local Authorities (LAs) in England and Wales are legally permitted to recover reasonable costs when pursuing unpaid Council Tax. These charges help cover the administrative and legal expenses involved in the enforcement process.
What the Law Says
Under The Council Tax (Administration and Enforcement) Regulations 1992, local authorities may apply to the Magistrates Court for a liability order if Council Tax remains unpaid. Regulation 34(7) allows councils to recover:
“…the reasonable costs incurred in obtaining the summons and liability order.”
These costs can be added to the debtor’s Council Tax account, provided they reflect actual expenses and are not excessive.
Best Practice and Transparency
Government guidance encourages councils to ensure that recovery costs are:
• Proportionate to the action taken.
• Clearly explained to residents.
• Published on the council’s website.
How Charges Are Applied
We aim to engage with residents before any charges are incurred. This includes:
• Issuing reminders when payments are missed.
• Offering special payment arrangements.
• Referring residents to independent debt advice when needed.
Breakdown of Court Costs
| Stage | Charge | Description |
|---|---|---|
| Summons Issued | £52.00 | Applied when a summons is issued. If the account is settled before court, no further charge applies. |
| Liability Order Granted | £15.50 | Applied when the court grants a liability order. |
These charges cover:
• Staff costs (salaries, national insurance, pensions)
• IT system maintenance and licences
• Postage, printing, and stationery
Erewash Borough Council has maintained the above costs at the same level for several years and has not increased the costs in line with typical annual increases, for example, postage costs.
Transparency
Our standard charges are:
• Published on this website
• Detailed in all recovery correspondence
For more information on what happens if you fall behind with Council tax, visit Non Payment and Recovery | Erewash Borough Council