Summary: Mr X complained that the Council failed to notify him about possible recovery action and costs when seeking to recover his council tax arrears. He said this caused upset and stress. We do not find the Council at fault.

The complaint

1. The complainant, who I refer to here as Mr X, complained that the Council failed to notify him about possible recovery action and costs when seeking to recover his council tax arrears.
2. Mr X said he was sent a summons with no warning and has been unfairly charged for court costs. He said this caused upset and stress.

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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 cannot question whether a council’s decision is right or wrong simply because the complainant disagrees with it. We must consider whether there was fault in the way the decision was reached. (Local Government Act 1974, section 34(3), as amended)
4. 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

5. I considered the information and documents provided by Mr X and the Council. I spoke to Mr X about his complaint. Both parties had an opportunity to comment on an earlier draft of this statement. I considered all comments and further information received before I reached a final decision.
6. I considered the relevant legislation, set out below.

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What I found

What should have happened

7. The primary legislation for council tax is the Local Government Finance Act 1992. The main secondary legislation concerned with collection and recovery is the Council Tax (Administration and Enforcement) Regulations 1992 (“the Regulations”). Councils are responsible for collecting council tax.
8. If a council tax payment is missed, a council must issue a reminder notice (at least seven days after the missed payment). If the arrears are not paid, the balance for the full year then becomes due. A council can then complain to the Magistrates Court and issue a summons. A liability order hearing is then heard in the Magistrates Court (at least 14 days after the service of the summons). The court can then grant a liability order. Councils will charge costs for the issue of a summons and a liability order.
9. Regulation 23 of the Regulations sets out what information councils must include on all reminder notices. Regulation 23 says reminders must state how much is due, the amount required to be paid within seven days, and that failure to pay will result in that year’s full balance becoming due.

What happened

10. In December 2020, the Council issued a council tax bill for a property Mr X owns. In January 2021, the Council sent Mr X a reminder notice because he had not paid council tax. At the end of January, Mr X paid 75% of the council tax bill, believing he was entitled to a single person discount.
11. In April, the Council sent Mr X a court summons for the outstanding 25% of the council tax bill. This added court fees of £69.50 to the amount Mr X owed.
12. Mr X contacted the Council. The Council replied, telling Mr X he was not entitled to a single person discount. The Council said because Mr X did not pay the full amount owed, it had issued the summons correctly.
13. Mr X complained that the reminder notice did not tell him there would be further recovery action or costs added.

Analysis

14. The Regulations set out what information councils must include in reminder notices (see above). I have seen the reminder notice the Council sent Mr X. It contained the information required by the Regulations.
15. There is nothing in law that says reminder notices must warn taxpayers that if they do not pay the council can take recovery action which will add costs. For this reason, I do not find the Council at fault.
16. The Council says its usual reminder notices tell taxpayers if they do not pay then it can take recovery action which will add costs to the amount already owed. It says it changed its reminder notice template due to COVID-19. The Council is entitled to do this.

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Final decision

17. I have completed my investigation and I do not uphold Mr X’s complaint. This is because there is no fault.

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Investigator's decision on behalf of the Ombudsman