Behind on Council Tax or Bills? Where to Start

Falling behind on bills is more common than many people think, and it can happen to anyone after a change in income, illness or rising costs. The most important step is to act early – the earlier you deal with it, the more options you have.

Know your priority debts

Some debts have more serious consequences if they are not paid, so they should be dealt with first. These are known as priority debts and include:

• Council tax
• Rent or mortgage payments
• Gas and electricity
• Income tax, VAT or National Insurance owed to HMRC
• Court fines and child maintenance

Non-priority debts, such as credit cards, catalogues and personal loans, still matter, but the consequences of falling behind are usually less severe.

Practical first steps

• Open your post and list who you owe, how much and any deadlines.
• Work out a simple budget of your income and essential spending.
• Contact the people you owe before the deadline – many will agree a reduced payment plan.
• Check you are getting all the benefits and discounts you are entitled to, such as Council Tax Reduction.

Breathing Space

In England and Wales, the Breathing Space scheme can give you up to 60 days of protection from most creditor action, interest and charges while you get debt advice. You can only access it through an approved debt adviser.

Free help is available

At the clinic we can help you understand tax-related debts and HMRC payment plans, and point you to free specialist debt support such as Citizens Advice, StepChange and National Debtline. You do not need to face it alone.