Understanding council tax debts in Scotland

If you live in Scotland and you're struggling with council tax debts, you're not alone. Council tax arrears are one of the most common debt problems our team at Scotland Debt Solutions deal with, and we speak to people in your position every single day.

Council tax is classed as a priority debt, which means it needs to be dealt with before other debts like credit cards or personal loans. If you fall behind in your council tax obligations, your council has significant powers to recover what you owe. However, there are also steps you can take to regain control particularly if you act quickly.

We've been helping people across Scotland with council tax debt for over 35 years. Whether you've just missed your first payment or you're already facing enforcement action from sheriff officers, we can talk you through your options in confidence.

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Can I go to prison for not paying council tax in Scotland?

Unlike in some other areas of the UK, you cannot be sent to prison for council tax arrears in Scotland. However, council tax arrears are still a serious matter and the worst thing you can do is ignore them. Your council has a range of enforcement powers available to them, including taking money directly from your wages, benefits, or your bank account.

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What happens if you fall behind on council tax in Scotland?

There is a set process that councils in Scotland follow when chasing unpaid council tax. Understanding where you are in this process is important, as this affects what action the council can take against you and what options are available to you to help you sort the situation out.

1. Reminder letter - If you miss a monthly payment, you'll receive a reminder giving you seven days to pay and bring your account up to date. If you pay within this time, your normal instalment plan continues and there is no further action against you.

2. Final notice - If you miss a further payment after a reminder (or don't pay following the first reminder), you'll receive a final notice. At this point, you lose the right to pay your remaining council tax bill for the year in monthly instalments. The council will demand the entire remaining balance for the financial year in one lump sum, which must be paid within 14 days. You may still be able to negotiate a new repayment plan by contacting the council directly, but this varies from council to council.

3. Summary warrant - If the debt remains unpaid, the council can apply to the sheriff court for a summary warrant. This is a formal certificate confirming how much you owe. You will not be told in advance that the council is applying for this. Once granted, 10% is added to your debt as an administration charge, and your case is passed to sheriff officers for collection. At this stage, you can no longer deal with the council directly as all payments must go through the sheriff officers.

4. Charge for payment - After a summary warrant has been issued, the sheriff officers can serve a charge for payment. This is a formal demand requiring you to pay the full amount you owe within 14 days. It must be accompanied by a Debt Advice and Information Package explaining your rights. If you cannot pay in full within this period, you can apply to the sheriff court for a time to pay order, which allows you to repay in affordable instalments.

5. Enforcement action - If the charge for payment expires without payment, sheriff officers can take further steps to recover the debt. The most common forms of enforcement for council tax are:

Earnings arrestment (wage arrestment) - Your employer is instructed to deduct money directly from your wages each pay day, based on a set scale linked to how much you earn. A protected minimum amount of your income is safeguarded, and the deductions continue until the debt is cleared. Council tax arrears are the most common reason for wage arrestment in Scotland.
Bank arrestment - Sheriff officers can freeze funds in your bank account to recover the money you owe. A protected minimum balance applies.
Attachment of goods - Sheriff officers can seize non-essential items from outside your home (such as vehicles) and sell them to recover the debt. They cannot enter your home to take goods unless the court grants a separate order known as an exceptional attachment order, which is rare and used as a last resort.

If you receive any benefits such as Universal Credit, Income Support, or Jobseeker's Allowance, the council can also apply for deductions to be taken directly from your benefit payments.

What are your options if you have council tax arrears?

No matter how far things have progressed, there are steps you can take to resolve your council tax debt problems. The key is to act as early as possible as the more time you have, the more options are available. Possible solutions for council tax debt include:

Negotiating a repayment plan with the council - If you're still in the early stages and a summary warrant has not yet been issued, you should contact your council's finance department directly. Many councils will agree to an affordable repayment plan if you explain your situation honestly. If your debt has already been passed to sheriff officers, however, your council will not be able to help you and you must negotiate with the sheriff officers instead
Applying for a time to pay order - If you've received a charge for payment, you can apply to the sheriff court for a time to pay order. This allows you to repay the debt in affordable instalments and, if granted, stops the sheriff officers from taking enforcement action while it's in place.

What happens if I have other debts as well as council tax arrears?

While negotiating for additional time to pay can be the best route forward if council tax arrears are your only outstanding debt, for those who owe money on credit cards, loans, and other finance agreements, this may not be enough.

There are a range of formal debt solutions available in Scotland to help individuals deal with unmanageable debt, including council tax. These are:

Debt Arrangement Scheme (DAS) - A Debt Arrangement Scheme is a formal debt solution that allows you to repay what you owe through affordable monthly instalments over a longer period of time. Once an application for a DAS is made, it stops all ongoing enforcement action, including wage arrestment. Council tax arrears can be included in a DAS alongside your other debts, and you won't pay any interest or charges on the amounts included.
Trust Deed - A Trust Deed is a formal debt solution for people in Scotland who owe at least £5,000 in unsecured debt that they cannot afford to repay. As part of a Trust Deed, you make affordable monthly payments for a period of four years, with any remaining debt included in the arrangement being written off at the end of the term. Council tax arrears can be included in a Trust Deed alongside other unsecured debts. A Trust Deed also stops creditors from taking enforcement action against you, providing protection from wage arrestment, bank arrestment, and other forms of diligence.

For more on how a Trust Deed can help with council tax debt specifically, see our dedicated article: How to clear your council tax arrears with a Trust Deed.

Sequestration - Sequestration is Scotland's form of bankruptcy. It may be appropriate if you have no realistic way of repaying your debts. Council tax arrears are included in sequestration, and enforcement action stops once the process begins. Sequestration is a serious step with long-term implications, so it's important to take professional advice before going down this route. Your Scotland Debt Solutions advisor can explain how sequestration will affect you and whether it is likely to be appropriate for your situation.

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We help people across Scotland with council tax arrears

Every council in Scotland has the power to take enforcement action against those with council tax arrears, but each council approaches things in its own way. Whether you owe money to Glasgow City Council, City of Edinburgh Council, Aberdeen City Council, Dundee City Council, Highland Council, Fife Council, or any other local authority, our team can help.

We have offices in Aberdeen, Dundee, Edinburgh, Glasgow, and Inverness, but if you'd prefer to talk things through over the phone or via WhatsApp, we can do that too.

If you're worried about council tax debt, the most important thing you can do is talk to someone. Our advisors are here to listen, explain your options, and help you find the right way forward, whether that's negotiating with your council, entering into a formal debt solution, or simply understanding where you stand.

Everything we discuss is completely confidential, and your initial consultation is completely free of charge.

Call our team on 0141 292 6587 or request a free debt report to get a clear picture of your financial situation and better understand your options.