Challenges to the legality of Council Tax

We have a responsibility to bill and collect Council Tax.

This page covers common requests we get about the legality of Council Tax.

 

Requests to see where Council Tax funding is being spent

You can find council budgets and spending in the council finances and transparency section of our website.

Requests for us to provide signed Council Tax contracts with residents

Council Tax is not collected or owed under a contract. It is a statutory tax imposed and collected by the council as a public authority under the legislation of the:

• Local Government Finance Act
• Council Tax (Administration and Enforcement) regulations 1992 
• Local Government Act 2003 

These legal provisions give the council the authority to levy, collect and recover Council Tax without needing a contract or consent from an individual.  

References to the following acts are not relevant: 

• Companies Act
• Contracts Act
• Bills of Exchange Act 
• other acts about companies or contracts

Requests to provide evidence of an agreement to collect Council Tax

We also receive requests to provide evidence that we have agreed with residents that we can collect Council Tax from them.

Council Tax does not need a contractual agreement or mutual consent for us to claim or recover it.

Provide evidence containing a wet ink signature

Councils do not need to provide a signature to charge for Council Tax. 

The law states that the use of a rubber stamp or electronic signature are both valid ways of signing a summons. 

Requests to provide evidence of a resident’s legal obligation to pay Council Tax

To find out who is considered liable to pay Council Tax, view Local Government Finance Act 1992 c14 Part 1, Chapter 1, Sections 6-9 – legislation.gov.uk. 

Residents do not need to agree to this legislation for it to be legal.

Requests for us to give evidence that we can legally use a resident’s legal or fictional name to generate revenue

It does not matter if a name is legal or fictional for Council Tax. 

Council Tax is charged and payable by whoever is liable. This is determined by:

• the Local Government Finance Act 1992 
• Council Tax (Administration and Enforcement) Regulations 1992

Requests to confirm that the debt exists

When we send a Council Tax demand notice (a Council Tax bill), it creates a debt. 

Residents do not need to sign or agree to be charged Council Tax. This is because it is a tax, not a contract or service charge.

Requests that state that someone does not need to pay Council Tax because they are a Freeman on the Land

Being a Freeman on the Land does not mean you can choose which laws you live by and which you ignore. Council Tax laws will still apply to you. 

Case law, such as Manchester magistrates’ court Vs McKenzie (2015), confirms this is not a valid reason not to pay Council Tax.

Requests to provide a true bill that complies with the Bills of Exchange Act 1882

We meet the requirements of the Local Government Finance Act 1992 and Council Tax (Administration and Enforcement) Regulations 1992.

If a resident does not accept certain forms of communication

You should not ignore Council Tax communications. 

We will need to take action to recover any Council Tax that you owe, so it is important that you keep up to date on our communications.

For more information on what happens if you ignore our Council Tax communications, visit what happens if you don’t pay your Council Tax.

Requests to clarify if Hackney Council is a company or a corporation

Hackney Council is a local authority in the public sector. This means we do not have a company number.

Requests for us to give our VAT details or a VAT invoice

Council Tax is outside the scope of VAT, so we cannot provide a VAT invoice.

Requests to show where a resident has given their consent for us to hold their data

The council does not need residents’ consent to process their data if we need it to carry out a task that is either a lawful function or in public interest.

Billing and collecting Council Tax is a lawful function that Hackney Council carries out. For more information, view Article 6 (c) and (e) of the UK GDPR legislation – legislation.gov.uk.

Requests to show which companies we have shared residents’ personal data with

We will share details of liability orders with court appointed enforcement agents to recover the money we are owed. 

We might also share personal data to detect or prevent fraud. For more information about data sharing, visit:

• Council Tax privacy notice
• Data protection – privacy policy

Requests to receive a copy of the liability order

Granting a liability order is a legal process, not a document. 

Liability orders are granted at Magistrates’ Court Hearings. After the hearings, a full list of granted liability orders is produced. 

An electronic copy of the list is kept by both the council and the Magistrates’ Court where the orders were granted.

The council notifies all who have a Liability Order made against them.

If a liability order is granted without a resident’s presence or consent

If you have a dispute or a valid defence against the grant of a liability order against you, then you need to take this up with the Magistrates’ Court. 

You will need to explain why you feel Hackney Council has not followed the correct process and apply for your liability order to be set aside.