Council tax payments

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Permalink Reply by Hugh on October 24, 2007 at 1:21

I've always paid in 10 instalments. I think the law stipulates this but allows LAs to extend the period for people experiencing hardship. (See Directgov website). It could be that someone in Haringey has decided that they have been using the discretionary powers too widely.

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Permalink Reply by Alan Stanton on November 8, 2007 at 13:32

As promised I sent in a councillor's Inquiry. Here's the (slightly shortened) reply and my further questions. I will post the new reply.

-----Original Message-----
26 October 2007

Dear Councillor Stanton,

RE: COUNCIL TAX

Thank you for your enquiry of 24th October 2007.

You have enquired as to Haringey's policy regarding the payment of Council Tax over the financial year.

Under Council Tax legislation, the statutory instalment scheme set out in Part 1 of Schedule 1 to the Administration and Enforcement Regulations prescribes that instalments are payable at monthly intervals, if a Council Tax demand is issued on or before 30 April. Consequently, all taxpayers in the borough are required to pay their Council Tax in ten monthly instalments. If payments are made within this time period, then the Council is better positioned to budget its expenses and provide a more efficient service to its residents.

Although in the past the Council has been more flexible in its repayment instalments, this is no longer being allowed. This change is part of the Council's internal processes and is not information which would be available on our website.

I trust this clarifies the situation.

Yours sincerely,

Benefits & Local Taxation

-----Original Message-----
From: alan.stanton@virgin.net
Sent: 29 October 2007 13:13
To: Benefits & Local Taxation

Thank you for your very quick response, formally confirming that the policy has changed.

Can you please tell me:
(1) When was the decision made to change the policy?
(2) Was this decision made by councillors and confirmed by the full Council; or was it made by officers under delegated authority?
(3) Was any calculation made on the likely annual savings and, if so, what were the estimated savings for the current year? Are these being achieved? Was it also anticipated that this figure would be offset by the costs of Court and bailiff's fees and a possible increase in bad debt?

I assume the reason for the previous more flexible policy was to cover cases of hardship and to enable the spreading of the tax for people on lower incomes. (But who may not have qualified for Council Tax benefit.) Can you please tell me:

(4) Whether - before the decision was taken to withdraw the discretion for twelve monthly payments - any consultation took place with appropriate agencies? I have in mind, for example, Social Services; the CABx; and other voluntary agencies which provide services to or represent particularly vulnerable groups.

(5) Are there indications from the current pattern and trends in Council Tax collection, and in arrears and Court proceedings, which show the new policy is working well? Or perhaps indicate that it is causing any particular problems and difficulties - especially to people on lower incomes?

Finally, I apologise if I've misunderstood the point you were making about the website. But I don't follow what stops this policy change being set out on Haringey's website, together with the reasons for the change. I requested this information so I can pass it to a resident who raised the issue. So why can't the same information appear on the Council's website so residents can read it themselves without going through a councillor?

Thanks for your help.

Alan Stanton
Councillor Tottenham Hale Ward

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Permalink Reply by Alan Stanton on November 15, 2007 at 13:26

UPDATE - 15 November 2007
Below is the reply to my email about Haringey Council Tax being paid in 10 instalments. (Though I still don't see why this information can't appear on Haringey's website.)
______________
"Dear Councillor Stanton

Re: Council Tax Collection

Thank you for your further e mail dated 29 October 2007.

It would appear that the earlier response sent to you was misleading. Under Council Tax legislation, the statutory instalment scheme set out in Part 1 of Schedule 1 to the Administration and Enforcement Regulations prescribes that ten instalments are payable at monthly intervals if a Council Tax demand is issued on or before 30 April. All Councils request their taxpayers to pay via statutory regulations i.e. over ten months.

Prior to 1 April 2007, the Local Taxation Service did allow some taxpayers to pay their Council Tax over a period of twelve months. This twelve month option was introduced as an incentive to taxpayers who agreed to pay their Council Tax by Direct Debit for the first time and this would be allowed for twelve months only. Direct Debit is the most efficient and cost effective method to collect the tax.

This incentive strategy lasted for two years and a differing Direct Debit incentive strategy is implemented every year. Therefore those taxpayers previously paying their Council Tax over a twelve month period as part of the incentive scheme were then asked to pay over the statutory ten month period in line with every other tax payer in the borough.

Taxpayers experiencing financial difficulty are asked to contact Customer Services straight away if they cannot pay or are falling behind with their payments. Every effort is made to ensure that all taxpayers receive all benefits and relief's that they may be entitled to.

Yours sincerely.
Haringey Benefits & Local Taxation"

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Permalink Reply by Omotn on November 19, 2007 at 7:54

So what we should do is (I say we, as I like to think of myself, the councillors, the officers and other residents of Haringey rather like an enormous extended family)
1) wait until May 1st to issue the demand
2) demand instant payment for the whole bang shoot
3) invest the zillions wisely (some form of packaged debt or a Christmas club, perhaps)
4) spend the additional income to make even better Haringey

btw - do we still owe central government £60million from the loony left daysa?

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Permalink Reply by Alan Stanton on November 19, 2007 at 10:15

Sadly, even with a careful search down the back of our sofa, there isn't enough to pay Council Tax in one hit. Omotn, you might want to download a helpful little booklet.

Btw - which £60 million did you have in mind?

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Permalink Reply by Michelle Lacy on November 24, 2007 at 19:27

Hi Alan
Really appreciate you finding out more details about the payments, as the Council Tax office didn't explain the reasons for the change at the time.

Council Tax is such a big bill to pay that it seems unfair payments are no longer accepted over the full financial year as it's so much easier to budget for when I, like most people in work, are on monthly paid salaries.

Many thanks
Michelle

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Permalink Reply by Alan Stanton on November 25, 2007 at 1:02

Hello Michelle,

I agree with you. Apart from the obvious reason - Councils' cashflow - the only other reason I can think of for ten monthly payments, is to help local councils close their books at the end of the Financial year. But Council Tax is unfair and regressive; and as it keeps rising, spreading the payments would - as you say - make things a bit easier.

I will email David Lammy, our MP and see what he has to say. Maybe if the Government aren't brave enough to reform the Tax, then at least they could amend the regulations.

Sincerely,
Alan

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