Summary: Miss X complained about a council tax bill she received after moving out of her former home. She said the Council gave confusing and contradictory information about what period the unpaid tax related to and started recovery action despite her challenging the bill. There was no fault in the way the Council decided Miss X’s council tax liability, or in its decision to seek recovery of unpaid council tax.

The complaint

1. Miss X complained about a council tax bill she received after moving out of her former home. She said the Council gave confusing and contradictory information about what period the unpaid tax related to and started recovery action despite her challenging the bill.
2. Miss X said this caused her distress and she would like the Council to waive the court recovery fees.

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The Ombudsman’s role and powers

3. We investigate complaints of injustice caused by ‘maladministration’ and ‘service failure’. I have used the word fault to refer to these. We consider whether there was fault in the way an organisation made its decision. If there was no fault in the decision making, we cannot question the outcome. (Local Government Act 1974, section 34(3), as amended)
4. If we are satisfied with an organisation’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

5. As part of the investigation I have considered the following:
• The complaint and the documents provided by the complainant.
• Documents provided by the Council and its comments in response to my enquiries.
6. Miss X and the Council had an opportunity to comment on my draft decision. I considered any comments received before making a final decision.

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What I found

7. Council tax is charged for occupation on a daily basis. If a tenant moves out before their tenancy agreement ends, they will usually remain responsible for council tax until the agreement ends or a new tenant moves in.
8. The Council Tax (Administration and Enforcement) Regulations 1992 cover both the way councils collect payments of council tax and the way councils can recover council tax debt.
9. To use the various powers available to it to recover unpaid council tax, a council has to apply to the Magistrates Court for a liability order against those it believes are liable. Once a council has obtained a liability order it can take recovery action.

What happened

10. I have detailed below some of the key events leading to Miss X’s complaint. This is not intended to be a detailed account of what took place.
11. Miss X was joint occupier of a property with a tenancy agreement running until January 2021.
12. On 17 July 2020 the joint occupier, who I will call Mr Y, left the property. Miss X became sole occupier. Miss X contacted the Council to ask for a sole occupier discount on council tax.
13. Miss X next contacted the Council to advise she had left the property on 27 November 2020.
14. In early 2021, the Council issued a council tax bill to Miss X’s landlord.
15. The landlord’s agent contacted the Council to say Miss X’s tenancy agreement ran until January 2021.
16. The Council wrote to Miss X in February 2021 chasing payment of overdue tax. The letter was returned to the Council marked that Miss X no longer lived at the property.
17. The Council contacted Miss X by email in September 2021, seeking £651.04 in unpaid tax. It threatened recovery action if she did not pay.
18. Miss X told the Council she moved out of her previous home on 27 November 2020 and made payment of tax in full up to then. She said Mr Y stayed in the property for the final months of the tenancy, up to January 2021, after coming to an agreement with the landlord. She asked the Council to contact Mr Y about the outstanding tax.
19. The Council said Miss X was liable for tax until the end of her tenancy in January 2021. It asked for proof Mr Y took over the tenancy after 27 November 2020 in order to adjust the bill.
20. Miss X sent the Council proof of Mr Y’s agreement with the landlord on 1 November 2021.
21. The Council then sent Miss X a revised tax bill of £104.40.
22. Miss X asked what the bill was for. She said between July and November 2020 she made payments of £218, £202.67, £167.49 and two payments of £165.
23. The Council gave Miss X a breakdown of her tax account on 25 November. It said Miss X paid £167.49 in September and £165 in October and November 2020. It said the payments of £218 and £202.67 she referred to were made on the previous joint account with Mr Y.
24. The Council issued a reminder on 6 December because Miss X had not paid. It threatened to issue a court summons if she did not pay within seven days.
25. Miss X emailed the Council on 23 December 2021. She referred to the revised tax bill of £104.40. She asked what period it was for. She said her last payment was on 11 November 2020 and she always paid her bill.
26. The Council issued a court summons on 29 December 2021. This meant added charges of £117.50.
27. The Council gave Miss X another summary of her account on 6 January 2022. It said the tax due for 17 July to 27 November 2020 was £601.89. It said she paid £497.49 between September and November 2020, leaving a balance of £104.40. It also said there were now court costs of £117.50 because it had started recovery proceedings.
28. Miss X asked why the account commenced from 17 July 2020 when the account shared with Mr Y ran until August 2020. She said she made joint account payments in July and August so her sole account should have started after August. She also asked why court costs had been added while she was disputing the bill.
29. The Council said Miss X applied for a single person’s discount from 17 July 2020. The Council closed her joint account effective from 16 July and set up a new sole account. It said unpaid tax remaining on the joint account was £639.23 for the period 20 June 2019 to 16 July 2020. Miss X paid this off in instalments in June, July, and August 2020.
30. Miss X accepted this explanation and paid the outstanding tax of £104.40 on 26 January 2022. However, she did not pay the court fees of £117.50.
31. The Council instructed enforcement agents to recover the court fees. This added another £75 to the outstanding balance.
32. Miss X complained to the Council on 28 January 2022. She said it was unfair for the Council to start recovery action while she disputed the tax bill.
33. The Council said tax remains payable and recovery continues even while someone disputes liability. It said it made no agreement to waive the recovery costs. The Council ended by saying it followed the correct recovery process and it did not uphold Miss X’s complaint.
34. Miss X asked the Council to reconsider. She said she did not receive its email dated 25 November 2021 with a breakdown of her account. She also said it was not fair to only give seven days’ notice before issuing a court summons.
35. The Council sent its final complaint response on 25 March 2022. It said:
• Its email dated 25 November 2021 was sent to the same address Miss X used to complain.
• Miss X remains responsible for council tax payments even if disputing or querying the amounts owed and this does not freeze or suspend recovery. As Miss X did not pay, the Council issued a summons.
• Miss X’s payment of £104.40 has not cleared her account.
• It was satisfied the summons and enforcement fees were incurred correctly and will not be removed.

Analysis

36. I have not found fault in the way the Council calculated Miss X’s council tax liability.
37. Miss X’s tenancy agreement ran until January 2021, so the Council was entitled to pursue her for unpaid tax up to then. It was up to Miss X to give the Council evidence she should only be liable for tax until November, when she moved out of the property and Mr Y moved back in.
38. Once the Council established Mr Y remained in the property alone after Miss X moved out, it agreed to reduce her bill accordingly.
39. Miss X said she did not receive the Council’s email dated 25 November 2021 where it clarified her account balance. On the evidence seen, the Council sent the email to the correct address. If Miss X did not receive the email, that was not the fault of the Council.
40. In addition, the Council sent a reminder on 6 December in which it threatened to issue a summons in seven days if Miss X did not pay.
41. When Miss X did not pay her council tax bill the Council was entitled to seek recovery. Miss X is unhappy the Council started the recovery process despite her challenging the bill. I appreciate it was distressing for Miss X to receive a court summons. However, there is no law which says councils must stop recovery action because someone appeals or complains. I therefore do not find the Council at fault.

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Final decision

42. I have completed my investigation. There was no fault in the way the Council decided Miss X’s council tax liability, or in its decision to seek recovery of unpaid council tax.

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Investigator's decision on behalf of the Ombudsman