New scheme could see council tax debt reclaimed from Coventry residents' earnings

Coventry City Council will pilot a scheme which could see council tax debt reclaimed from the earnings of non-paying residents



It seeks to tackle £5million in unpaid council tax, council chiefs say.

Through the trial, which will roll out from July 8, non-paying customers who are employed or have an income will be contacted to start paying their debts.

If they do not comply, the scheme would see them have debt deducted directly from their earnings through their employer.

The council is one of 29 local authorities teaming up with HM Revenues and Customs (HMRC) to use debt information sharing powers enshrined in law in 2017.

The Digital Economy Act 2017 allows councils to obtain employer and income information from HMRC for people who have failed to pay council tax.

They can then secure an order from local magistrates court forcing them to pay.

Cabinet member for finance Coun John Mutton said: “Last year the amount of council tax collected by the revenues team was more than £9.3million up on the previous year.

“It’s important to work hard to maximise revenue collections especially at a time when the national government is reducing the amount of funding it provides to local authorities.

“We need to keep improving, and linking with the HMRC will allow us to potentially increase the money we put into vital frontline services and services for our most vulnerable residents. It’s about holding people to account."

In 2018/19 the council collected 95.7 per cent of council tax. A total amount of £142.8million.

I thought they already had this as an option? - Maybe I'm mistaken.

2018/19 the council collected 95.7 per cent of council tax

Why so low? Any time I'm a couple of days late I get chased and get threats about having to pay the whole amount at once.

I'd like to know more about this missing 4.3%. Which areas of the city are featured most and why aren't the council being more proactive about collecting it? I know a neighbour of my mother's went for years without paying a penny, he played the system. I'm not sure if the council ever got the money owed.

My wife refused to pay the hated Poll Tax while I was away(Army not prison). I think we still owe about £600, the council gave up on us and thousands of others. Thatcher must have cost council £millions with her ill thought out plan.

Interesting one that Jock.

When we got together the good lady had refused to pay the council tax. But when we bought our present place she relented and paid up what she owed. I think her ex-husband went to his grave owing several hundred pounds.