Home Council Tax Common Misunderstandings about Council Tax
Common Misunderstandings about Council Tax
Council Tax is a tax on domestic properties collected and used to pay for a wide range of local services such as recycling and refuse collections; parks, schools, roads and street lighting. It is a mandatory property-based tax authorised by law, not a direct subscription for individual services. As such, lack of use of a particular service does not constitute a reduced requirement to pay, nor a reduced charge.
If you have any concerns over the legality of charging Council Tax, please seek independent legal advice. Unfortunately, there are many misleading articles and templates on the internet regarding the legality of Council Tax. Do not rely on internet sources, hearsay or forum statements which may be incorrect or misleading.
Liability for Council Tax
Liability for Council Tax does not require consent or the existence of a contract with the council. Any such assertion to the contrary is incorrect and there is no legal basis upon which to make this argument.
Any liable person who withholds payment will have recovery action taken against them, which could lead to committal proceedings or even a prison sentence.
Legislation
Liability for Council Tax is determined by the Local Government Finance Act 1992 and the Regulations made under it. They set out a Local Authority’s rights to levy and collect Council Tax to fund its services and came into effect on 1 April 1993. The legislation that covers Council Tax is freely available from the Government’s legislation website, administered by The National Archives, including:
Whilst the Council Tax team will do their best to answer all relevant enquiries about Council Tax, we reserve the right to refuse to respond to lengthy enquiries that focus on hypothetical arguments with no basis in statute, as they use our resources at the expense of other taxpayers.
‘Freeman on the Land’ and Similar Groups
On occasion some people feel that using an old law will result in not having to pay Council Tax. The ‘freeman on the land’ movement and similar groups believe that people are only bound by the contracts and laws they have consented to. However, contract law and alleged rights under common law are not the same as legislation relating to the administration, enforcement and collection of Council Tax.
The position in law is that you do not have a choice as to whether you are liable for Council Tax and being a ‘freeman on the land’ does not exempt anyone from paying Council Tax.
In the Manchester Magistrates Court v McKenzie (2015) case, a person who attempted to use ‘freeman on the land’ defences in court was imprisoned for 40 days.
In Kofa v Oldham (2024) a High Court case which addressed the arguments of no contract/consent given to pay council tax and the requirement for the issue of written Liability Orders/Court Orders.
This case confirmed that laws are considered binding, made by an elected Parliament on behalf of the whole country, therefore, no individual contract is required, and it is both “impossible and inappropriate” to gain individual consent.
The Judge went on to confirm that Magistrates Courts do not produce or serve paper orders and are not required to do so. The only requirement is that the order is made (i.e. by the court pronouncing it is making it) and the fact that it was made can be proved, thus a paper order is unnecessary.
Frequently asked questions (FAQs)
Answer: There is no requirement in law for you to agree to debt recovery. Council Tax is a priority debt and if it is not paid for, we will take further action to recover that debt.
Answer: Please refer to the Local Government Finance Act 1992 Part 1, Chapter 1, Sections 6 to 9.
Answer: Whether a name is legal or fictional is irrelevant for the purposes of Council Tax. Council Tax is charged and is payable by whomever is the liable party, which is determined by reference to the Local Government Finance Act 1992 and Council Tax (Administration and Enforcement) Regulations 1992.
Answer: The issue of a Council Tax Demand Notice (the bill) creates the debt. A signature or agreement from a resident is not necessary for Council Tax liability; it is a tax, not a contract.
Answer: A signature is not necessary for the billing of Council Tax, and no wet ink signature is mandatory on a Court Summons. Case law has clarified that the use of a rubber stamp or electronic signature are both valid for the purpose of the Court signing a Summons.
Answer: Being a Freeman on the Land, a Sovereign Citizen or part of a Private Membership Association does not mean someone can choose which laws they adhere to and which to ignore.
Answer: Council Tax is deemed outside the scope of VAT and therefore no VAT invoice is required.
Answer: Mole Valley District Council is a Local Authority within the Public Sector and does not have a company number.