Unpaid Coucil Tax - Recovering outstanding payments

Attachments of benefits

An attachment of benefits order is sent to the DWP (Department for Work and Pensions) to deduct money directly from a person’s benefits to recover unpaid Council Tax.

Deductions can be made from Universal Credit, Job Seekers Allowance (Income Based), Income Support, Employment Support Allowance and Pension Credit Guarantee Credit.

Attachments of earnings

An attachment of earnings is a legal order that allows a council to deduct money directly from a person's salary or benefits to recover unpaid Council Tax.

The Council can apply for an attachment of earnings order if a liability order has been obtained and the debt remains outstanding.

The Council will send a notice to the person's employer instructing them to deduct a certain amount from the person's income every pay period until the debt is cleared.

The amount deducted depends on the person's income. The deduction rate is based on a percentage of the person's net earnings (after tax and national insurance). The percentage ranges from 3 percent to 17 percent, depending on the income level and may be higher depending on the level of earnings. Two orders can be set up at one time.

The employer will send the deducted money to the council and provide a statement to the person showing the amount and date of each deduction.

The person can challenge an attachment of earnings order if they think it is wrong or unfair. They can contact the council to ask for a review or appeal to a tribunal. They can also apply for hardship relief if they are experiencing financial difficulties due to the deductions.

Deductions are based on net pay. Employers must refer to the table below when calculating deductions.

Daily earnings after pay	Weekly earning after tax	Monthly earnings after tax	Percentage of earning taken
Up to £11	Up to £75	Up to £300	0%
£11 to £20	£75 to £135	£300 to £550	3%
£20 to £27	£135 to £185	£550 to £740	5%
£27 to £33	£185 to £225	£740 to £900	7%
£33 to £52	£225 to £355	£900 to £1,420	12%
£52 to £72	£355 to £505	£1,420 to £2,020	17%
Over £72	Over £505	Over £2,020	17 to 50%

Enforcement agents

Enforcement agents are authorised by the local authority to collect unpaid Council Tax or from debtors.

Wokingham Borough Council employ 4 enforcement agents as follows:

Bristow and Sutor

Address: Bartleet Road, Washford, Redditch, B98 0FL.

Phone: 0330 390 2010

Visit the Bristow and Sutor website.

Marston Recovery

Address: PO Box 324, Rossendale, BB4 0GE.

Phone: 0333 320 1822

Visit the Marston Recovery website.

Excel Enforcement Agents

Address: 2 Marine Road, Colwyn Bay, LL29 8PH.

Phone: 0330 056 4114

Visit the Excel Enforcement website.

Empira Enforcement Agents

Address: Unit 2, 210 Cygnet Court, Warrington, WA1 1PP

Phone: 01925 984020

Visit the Empira website

Charging Orders

The creditor can apply to the court for an order that secures the debt against the debtor's property, such as their home or land. This means that if the debtor sells or remortgages their property, they will have to pay off the debt from the proceeds.

Bankruptcy

If a debtor owes more than £5,000 and fails to respond to a statutory demand within 21 days, the council may apply for a bankruptcy order under the Insolvency Act 1986. A statutory demand is a formal notice requiring payment or a repayment plan.

Once a liability order is obtained from the magistrates' court, the council can issue a statutory demand. If unpaid, this may lead to bankruptcy proceedings, where a court-appointed trustee manages the debtor’s assets to repay creditors.

Bankruptcy has serious consequences, including loss of property, credit impact, and employment restrictions. It is used only after other enforcement options - such as attachment of earnings or enforcement agents - have been exhausted. For limited companies, a similar process is followed to wind up the business.

Committal to Prison

As a last resort, unpaid Council Tax may result in a prison sentence.