Summary: Miss X complained the Council failed to update her Council Tax account in November 2019 when she contacted it to advise she was no longer a student and now had a job. Miss X says the Council’s failure to update its record has put her into debt. Miss X says the way the Council has managed her Council Tax account and contacts has caused her anxiety and stress. The Ombudsman does not find fault with the Council for holding Miss X liable for backdated Council Tax charges. The Ombudsman also does not consider any fault by the Council caused Miss X a significant personal injustice.

The complaint

1. Miss X complained the Council failed to update her Council Tax account in November 2019 when she contacted it to advise she was no longer a student and now had a job. Miss X says the Council’s failure to update its record has put her into debt.
2. Miss X says she lost her job in March 2020 and was on benefits for 6 months before she got a new job in October 2020.
3. Miss X says the way the Council has managed her Council Tax account and contacts has caused her anxiety and stress.

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What I have investigated

4. I have investigated Miss X’s complaint about the Council’s delay in updating her Council Tax account.
5. I have not investigated Miss X’s complaint about the Council not applying a reduction to her Council Tax account for when she out of work. I have explained this within the section of this decision titled “Parts of the complaint that I did not investigate”.

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The Ombudsman’s role and powers

6. We investigate complaints about ‘maladministration’ and ‘service failure’. In this statement, I have used the word fault to refer to these. We must also consider whether any fault has had an adverse impact on the person making the complaint. I refer to this as ‘injustice’. If there has been fault which has caused an injustice, we may suggest a remedy. (Local Government Act 1974, sections 26(1) and 26A(1), as amended)
7. The Valuation Tribunal deals with appeals against decisions on council tax liability and council tax support or reduction.
8. If we are satisfied with a council’s actions or proposed actions, we can complete our investigation and issue a decision statement. (Local Government Act 1974, section 30(1B) and 34H(i), as amended)

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How I considered this complaint

9. I have considered all the information Miss X provided. I have also asked the Council questions and requested information, and in turn have considered the Council’s response.
10. Miss X and the Council had opportunity to comment on my draft decision. Neither provided comment so I made my final decision.

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What I found

The law

11. Council tax is a combination tax on the value of property and a tax on individuals living in the property.
12. The occupier or owner is liable to pay Council Tax. An occupier with a freehold or leasehold interest in the property is the primary person responsible for Council Tax. This is followed by an occupier with no interest and then ultimately the owner of the property. (Local Government Finance Act 1992, section 6(2))
13. The Local Government Finance Act 1992 does not set any time limit on backdating liability for Council Tax. But a council should produce billing as soon as practicable. (Council Tax (Administration & Enforcement) Regulations 1992, Regulation 19)
14. The time limit for recovery action is six years from the date on which the cause of the recovery action started. (The Limitation Act 1980, Section 9(2))
15. The case of Regentford Ltd v Thanet District Council ([2004] EWHC 246 (Admin)) clarified the six-year limitation period from the Limitation Act 1980. It advised this date starts from the date of service of the notice, or demand, to pay from a council and not the start date of the charges.

Council corporate complaints procedure

16. The Council has a three-stage complaints procedure.
17. At Stage 1 the Council will try to resolve a complaint straight away. However, if the Council cannot address the complaint immediately it will pass the complaint to Stage 2.
18. At Stage 2, the Council will investigate a person’s complaint and provide a response within 15 working days.
19. A person can dispute the Council’s Stage 2 response. If a person does this, the Council will provide a Stage 3 response within 20 working days.

What happened

20. Miss X told the Council she was a full-time student on 21 September 2018 and her course would end on 30 September 2019. The Council applied a 100% full-time student discount to Miss X’s Council Tax account.
21. The Council sent Miss X an annual Council Tax bill on 5 March 2019 showing zero charges with the 100% full-time student discount applied.
22. Miss X’s course ended on 30 September 2019 and she got a job. Miss X was no longer eligible for the 100% full-time student discount from 1 October 2019.
23. The Council did not remove Miss X’s 100% full-time student discount from 1 October 2019. Miss X did not contact the Council to advise she was no longer a student.
24. The Council sent Miss X an annual Council Tax bill on 3 March 2020 showing zero charges with the 100% full-time student discount applied.
25. Miss X says she lost her job in March 2020 and went on to benefits before she got a new job in October 2020.
26. The Council reviewed Miss X’s Council Tax account on 8 December 2020 and discovered her course ended on 30 September 2019. The Council removed the 100% full-time student discount from Miss X’s Council Tax account from 1 October 2019.
27. On 10 December 2020, the Council billed Miss X for her full Council Tax from 1 October 2019 to 31 March 2021 totalling £1,228.65.
28. Miss X contacted the Council on 15 December 2020 to dispute the Council backdating the Council Tax charges. Miss X raised a complaint with the Council on 21 December 2020. Miss X said she would pay the Council Tax charges from December 2020 but could not afford backdated charges.
29. The Council accepted Miss X’s complaint on 22 December 2020 and promised a formal response within 15 working days.
30. The Council provided a, Stage 2, response to Miss X’s complaint on 8 January 2021. The Council said:
• It backdated Miss X’s Council Tax liability since her 100% full-time student discount expired on 30 September 2019.
• Miss X did not contact it to advise about a change in her circumstances. So, the Council only became aware of the change in circumstances when it reviewed Miss X’s Council Tax account in December 2020.
• It was going to take a direct debit payment from Miss X in January 2020 for about £400 and asked Miss X to contact it if she could not afford this.
31. Miss X cancelled her direct debit and the Council could not take payment for her Council Tax. The Council sent Miss X a reminder to pay her Council Tax bill.
32. On 22 February 2021, Miss X contacted the Council to advise the Council had not responded to her complaint. The Council sent Miss X a copy of its Stage 2 complaint response on 1 March 2021.
33. Miss X disputed the Council’s Stage 2 complaint response on 1 March 2021. The Council accepted Miss X’s dispute and promised a response by 29 March 2021.
34. The Council sent Miss X a Council Tax bill for the year 2021 to 2022 on 2 March 2021.
35. The Council sent Miss X its Stage 3 complaint response on 29 March 2021. The Council said:
• Miss X became liable for the Council Tax at her property on 1 May 2018.
• It had applied a 100% full-time student discount to her Council Tax from 1 October 2018 to 30 September 2019.
• It had applied a 25% single-person discount since 1 October 2019.
• A person is responsible for telling the Council about any change in circumstances which would impact their Council Tax responsibility.
• Miss X owed £398.50 for 1 October 2019 to 31 March 2020 and £830.15 for 1 April 2020 to 31 March 2021.
• Miss X must continue to pay for her Council Tax even if she disputes liability. The Council said Miss X could make alternative arrangements to pay and provided her with a contact number to discuss this.
• Miss X could approach the Local Government and Social Care Ombudsman (the Ombudsman) should she wish to take her complaint further.
36. Miss X responded to the Council to advise she told the Council in October 2019 about her employment status and the Council failed to update her Council Tax account. Miss X disputed payment for the backdated balance but offered to pay the balance since December 2020.
37. The Council responded to Miss X on 13 April 2021 and directed Miss X to the Ombudsman.
38. Miss X complained to the Ombudsman on 26 April 2021. The Council agreed to place a collections hold on Miss X’s account until September 2021. The Council also advised Miss X that she could pay for her ongoing Council Tax through direct debit, over the Internet, at the post office or by telephone. Miss X has paid for Council Tax charges since 1 April 2021.

Analysis

Council Tax billing

39. As the occupier of the property since May 2018, Miss X is liable for Council Tax at the property since this point.
40. The Council granted Miss X a 100% full-time student discount from September 2018 to 30 September 2019 for her education. The Council acted correctly to apply this discount.
41. The Council has accepted it failed to remove the 100% full-time student discount on 30 September 2019. This meant the Council continued to bill Miss X nothing for her Council Tax from 1 October 2019. The Council should have applied an end date to Miss X’s 100% full-time student discount when it applied this in September 2018. Failure to apply an end date is fault.
42. The Council says it updated Miss X’s Council Tax account in December 2020 following a review of Miss X’s account when it discovered Miss X’s 100% full-time student discount had expired. I do not find fault with the Council for removing Miss X’s discount at this time.
43. The Council is entitled to recover unpaid, or unbilled, Council Tax charges for up to six years from the date the Council begins recovery action. Since the Council billed Miss X for the Council Tax on 10 December 2020, the Council was entitled to backdate the Council Tax charges to 1 October 2019. Miss X is liable for these Council Tax charges and I do not find fault with the Council for backdating the charges.
44. Miss X complained she told the Council in October 2019 she had left full-time education and was working.
45. I asked the Council and Miss X for evidence of contacts between the Council and Miss X since September 2019. Neither Miss X nor the Council has provided evidence of contact between Miss X and the Council’s tax department between September 2018 and December 2020. There is no evidence Miss X contacted the Council to advise it of her change in circumstances. Since there is no evidence of contact, I do not find fault with the Council.
46. Even if there was evidence Miss X had contacted the Council’s tax department to advise of her change in circumstances, this would not remove Miss X’s liability for the Council Tax since 1 October 2019. As the occupier of the property, Miss X is liable for the Council Tax charges following her 100% full-time student exemption ending. Delayed billing by the Council does not remove this liability.
47. The Council was at fault for failing to remove the 100% full-time student discount from Miss X’s Council Tax account from 1 October 2019. This caused an accrual of debt for the next 14 months.
48. However, Miss X did not contact the Council to advise the Council of her change in circumstances. Miss X also did not contact about the Council continuing to apply the discount when she received the Council Tax bill in March 2020. Miss X only contacted the Council following receipt of the backdated bill. Miss X has contributed towards the delay in production of accurate Council Tax billing following the Council’s fault in October 2019.
49. I do not consider the Council’s fault in October 2019 presents a significant personal injustice to Miss X. This is because the debt accrued only covers 14 months and Miss X would be liable whether the Council billed her in October 2019 or December 2020. Miss X has also contributed towards the accrual of this debt through her inaction.

Contact and complaint handling

50. Miss X also complained about how the Council handled her contacts and complaints.
51. The Council chose to advance to Stage 2 of its complaints process following Miss X’s contact on 21 December 2020. The Council provided its Stage 2 response on 8 January 2021. The Council provided this response within the 15 working day timescale outlined in its complaint procedure.
52. Miss X disputed the Stage 2 response on 1 March 2021. The Council provided its Stage 3 response on 29 March 2021. The Council provided this response within the timescales it promised and within 20 working day timescale outlined in its procedure.
53. The Council has offered Miss X various payment options which Miss X could use to make payments to the Council to repay the debt at a more affordable rate, or acceptable means, to her.
54. The Council also delayed following its collections route which has allowed Miss X more time to dispute this matter and pay towards the outstanding debt.
55. I do not find fault with how the Council handled the backdated charges on Miss X’s Council Tax account or how it handled Miss X’s contacts or complaints.

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Final decision

56. I have completed my investigation because the fault by the Council has not led to a significant injustice to Miss X.

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Parts of the complaint that I did not investigate

57. I did not investigate Miss X’s complaint about the Council not applying a reduction to her Council Tax account for when she out of work. This is because it is for the Valuation Tribunal to decide on such matters and not the Local Government and Social Care Ombudsman.
58. I directed Miss X how to apply for a reduction to her Council Tax for the time she was out of work and in receipt of Universal Credit.
59. The Council should consider any application Miss X makes and direct her to the Valuation Tribunal to appeal the decision should Miss X disagree with the decision.

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Investigator's decision on behalf of the Ombudsman