The complaint

1. Mr B complains the Council took enforcement action against him for council tax arrears that were not his

What I have investigated

2. I have investigated the Council’s actions from 2018 onwards.
3. I have not investigated the actions of the Council between 2004 and 2006. The final section of this statement contains my reason for not investigating this part of the complaint.
4. I have not investigated the actions of the Court. The final section of this statement contains my reasons for not investigating this part of the complaint.

The Ombudsman’s role and powers

5. We investigate complaints about ‘maladministration’ and ‘service failure’. In this statement, I have used the word ‘fault’ to refer to these. 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)
6. We cannot investigate late complaints unless we decide there are good reasons. Late complaints are when someone takes more than 12 months to complain to us about something a council has done. (Local Government Act 1974, sections 26B and 34D, as amended)
7. We cannot investigate a complaint about the start of court action or what happened in court. (Local Government Act 1974, Schedule 5/5A, paragraph 1/3, as amended)

 

How I considered this complaint

8. I considered:
   • Mr B’s complaint and the information he provided;
   • documents supplied by the Council;
   • relevant legislation and guidelines;
   • the Council’s policies and procedures; and
   • the Council and Mr B’s comments on a draft decision.

What I found

9. Council tax is a local tax levied by local authorities. The amount a resident pays in council tax is based on the resident’s property band. Properties fall into one of eight bands according to their value on 1st April 1991. Resident’s in band A pay the lowest amount of council tax, and those in band H pay the most (Local Government Finance Act 1992).
10. Billing, collection and recovery of unpaid council tax is governed by the Council Tax (Administration and Enforcement) Regulations 1992, SI 1992/613.
11. Council’s issue demand notices yearly. The Council must include specified information with demand notices.
12. Council’s must send the person liable for payment of council tax a reminder and a notice before taking recovery action.
13. Recovery action is through the issue of a summons and getting a liability order through the magistrates’ courts.
14. There is no time limit to take action once a liability order is granted; the Limitation Act 1980 does not apply (Ridgeway Motors (Isleworth) Ltd v ALTS Ltd (2005 EWCA Civ 92 A)).

What happened

15. This chronology includes key events in this case and does not cover everything that happened. Events between 2004 and 2006 are included to provide context.
16. In April 2004, Mr B moved into property A.
17. The Council received a council tax questionnaire saying Mr B was the occupier of property A from April 2004. The landlord’s agent also told the Council, Mr B had taken on the tenancy at property A.
18. In June 2004, the Council sent a demand for council tax to Mr B at property A.
19. In August 2004, the Council sent a reminder letter to Mr B at property A.
20. Mr B sent a single occupant discount application form to the Council.
21. In September 2004, the Council asked Mr B to complete a council tax questionnaire.
22. In October 2004, the Council sent Mr B a revised council tax bill. The Council sent this to Mr B at property A.
23. In December 2004, the Council sent Mr B a reminder notice to property A.
24. In January 2005, Mr B was summoned and a liability order was granted in February 2005.
25. The Council passed the debt an enforcement agent.
26. In March 2005, the Council sent Mr B a council tax bill for the financial year 2005/06. The Council sent this to Mr B at property A.
27. In May 2005, the Council sent Mr B a reminder notice to property A.
28. In May 2005, a new tenant moved into property A.
29. In August 2005, the Council sent Mr B a council tax bill for the financial year 2005/06. The Council sent the bill to Mr B at property A. The bill was not returned to the Council.
30. In October 2005, the Council sent Mr B a reminder to property A. The letter was not returned to the Council.
31. In May 2006, the enforcement agent told the Council property A had a new tenant. The enforcement agent said this tenant had lived a property A since 2005. The new tenant told the enforcement agent property A was empty for a couple of months before she moved in. The enforcement agent told the Council it could not trace Mr B and had closed the case.
32. In January 2006, a summons was sent to Mr B at property A. The case went to Court and a liability order was granted in February 2006.
33. The Council passed the debt to an enforcement agent.
34. In May 2006, the enforcement agent returned the liabilities associated with property A for the financial years 2004/05 and 2005/06 to the Council.
35. In 2018, the Council undertook an exercise to collect old debts. The Council passed Mr B’s debt to an enforcement agent to trace and collect.
36. In July 2018, Mr B contacted the Council. Mr B explained he did not live at property A when the debt accrued.
37. At first, the Council believed the enforcement agent had traced the debt to the wrong person and put a hold on enforcement action. However, when Mr B wrote to the Council to complain about enforcement action, the signature on Mr B’s complaint letter matched the signature on the single occupant discount application made in August 2004.
38. Mr B says, during this investigation, he received more information about the exact date the debt accrued. Mr B says he now realises he is liable for the debt. Mr B says he will pay the money owed.

Analysis

39. The Council decided Mr B was liable for the outstanding council tax debt for property A for the financial years 2004/05 and 2005/06. In 2004, the Council was told Mr B was a tenant at property A. In May 2005, the Council was informed the tenancy had changed. The Council had no evidence Mr B ended his tenancy earlier than May 2005. Indeed, the Court was satisfied Mr B was responsible for the debt incurred and issued two liability orders. The debt was not pursued after 2006, because the enforcement agent could not trace Mr B.
40. In 2018, the Council passed the outstanding council tax debt to an enforcement agent. The enforcement agent traced Mr B and began enforcement action to recover the debt. The enforcement agent was entitled to take enforcement action as the Court had issued Mr B with liability orders for the debt. The Council is not at fault for passing the debt to an enforcement agent.
41. Mr B contacted the Council to say he was not liable for the debt. The Council took this into account and put a hold on enforcement action. When Mr B complained to the Council about enforcement action, the signature on the letter matched the signature on the single occupant discount application made in August 2004. This is evidence Mr B was living at property A in August 2004 and within the period the debt occurred. The Council is not at fault for continuing to pursue Mr B for the debt.
42. After receiving more information about the exact date the debt accrued, Mr B accepts he is liable for the debt

Final decision

43. I have completed my investigation and not upheld Mr B’s complaint. I did not find fault with Council’s actions.