we moved into a new place in october last year, and spoke to the council about our bill, we mailed them saying we'd moved in, they asked for tenancy agreements so we sent it, and they sorted out our parking permits and then nothing. we waited for our info about payments and heard nothing until end of january, when they sent us a bill for £500. we've been waiting for them to sort it so even though it took a lot longer than we thought it would we are pleased they have finally sorted it, but as it was a bill for £500 which we dont have, i emailed them and said can they spread it in instalments either with our bill for the next year or however they want, but we do not have £500. they emailed me back finally today saying no! this is from the letter -

If you are unable to make the full payment by 1 March 2011 as stated on your bill your account will follow through the council's recovery procedure, this will involve a reminder and a summons notice being sent to you.

A summons is issued so that the council is able to secure your debt with a liability order, which will be granted by the magistrates court.

Once a liability order is obtained we are then able to set up a new repayment plan with you so that your debt can be cleared.

Please be aware that £60.00 costs will be added to your account.

is there anything we can do? why do we have to go to court to pay instalments? we want to pay it, thats not the problem, but we are both self employed and on LOW income, yet they expect us to magic £500 out of the air? i dont get it. thanks in advance.

Because the CT is due for each financial year, they could have only offered you two instalments anyway because there was only Feb and Mar left of this current financial year when you got the letter. But, I don't really understand why they couldn't have at least given you those two instalments - better than nothing, KWIM?

They may not have given you instalments but there is nothing to stop you from starting to pay it now, even if it isn't the whole amount - a bit here and there will help reduce that balance. Have you had any reminders from them yet? If not then you'll get one, maybe two, reminders, and a final notice before a summons is issued - at most that gives you about 3 months before the summons so you do have some time before it gets to the liability order stage. Depending on your income this might be enough time to get it all paid off.

Most importantly, make sure you keep up with next year's payments when they become due because you don't want to get behind with 10/11's payments AND 11/12's payments because that will result in more liability orders and more costs.

Also, if you're on a low income have you considered applying for Housing and Council Tax Benefit? Might be worth a shot, despite the situation being more complicated because you're both self-employed.

At this stage in the year the statutory instalment scheme allows for 1 instalment - failure to pay this will result in no more than one reminder for the full balance and then a summons.

They can give more than the statutory instalment scheme but that is at their discretion.

is there anything we can do? why do we have to go to court to pay instalments? we want to pay it, thats not the problem,

At this stage , if the balance isn't paid, then they will obtain the Liability Order to secure the debt - this is standard practice. Once the order has been obtained then they have indicated that they are willing to make an arrangement with you, this is the best case scenario.