Council tax FAQs

There are a growing number of articles on the internet regarding the legality of council tax. Also, Freeman of the Land and similar groups believe that using an archaic law to challenge their council tax bill means they don’t have to pay council tax.

These groups commonly believe that they're bound only by any contracts and laws they have consented to. However, contract law and alleged rights under common law aren't the same as statutory legislation relating to the administration and collection of council tax.

Council tax liability arises through operation of the Local Government Finance Act 1992 and associated regulations, such as the Council Tax (Administration and Enforcement) Regulations. It's not optional, and it isn't something that you have to give your consent to. Nor does Shropshire Council have to prove that you have an obligation to pay council tax. 

The legislation sets out our duties and legal rights to demand council tax to fund the services we provide. It also sets out who is liable to pay council tax, as well as a clear appeal process when residents wish to dispute their council tax liability, through the Valuation Tribunal Service. If you're liable to pay council tax, you must make your payments as set out on your council tax bill.

Sometimes, residents attempt to target individual officers in their personal capacities, especially in purporting to make staff liable for alleged ‘compensation’. We take the safety and wellbeing of our staff very seriously and won't tolerate the individual targeting of staff in this way. Residents should be aware that such targeting may amount to harassment within the meaning of Section 1(1) or (1A) of the Protection from Harassment Act 1997, and that we can initiate both criminal and civil proceedings to protect our staff in such circumstances.

Our Revenues team will always try to provide clear and concise responses to genuine and relevant queries about council tax. However, we reserve the right to refuse to respond to lengthy spurious enquires that focus on hypothetical arguments that have no legal basis, which use up our valuable time at the expense of the taxpayer. This includes letters and notices served on the council’s chief executive and other senior officers. Such matters can be raised before the magistrate’s court.

If you're in any doubt about the legality of council tax, we'd advise you to seek professional legal advice.

FAQs

Is the council required to provide an authorised lawful contract, signed by both parties?

Some residents consider that council tax is a contract and requires a legal contract and signatures indicating an agreement. As previously explained, council tax is created by statute, and a contract is not required.

Therefore, any reference to the Magna Carta, Companies Act, Contracts Act, Bills of Exchange Act or other acts regarding companies or contracts is irrelevant.

Some people ask the council to provide evidence that there is an agreement with them that we can lawfully collect a debt from them. Again, this argument is irrelevant because there hasn’t been an exchange of contracts or agreement, and nor is one needed.

Is the council required to provide evidence that I am lawfully obliged to pay council tax?

Some people ask for evidence that they are lawfully obliged to pay council tax. The list of who is liable for council tax is set out in Section 6 of the Local Government Finance Act 1992. The council does not have to enter into an agreement about this with individuals.

Is the council required to provide confirmation the debt exists lawfully?

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, as it is a tax liability arising from statute, not a contract.

Is the council required to provide documents containing a wet ink signature?

A signature is not required for the billing and collection of council tax and no wet ink signature is required on a court summons either. 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.

Is the council required to provide evidence that you have the lawful and contractual authority to use the legal fictional name of “XXX” for the purposes of making money?

Whether a name is legal or fictional is irrelevant for the purposes of council tax. Council tax is charged and is payable by whoever the liable party is, which is determined by reference to the Local Government Finance Act 1992 and Council Tax (Administration and Enforcement) Regulations 1992.

I’m a Freeman on the Land. Does that mean I am not liable for council tax?

Whatever your personal beliefs, being a Freeman of the Land does not mean you can choose which laws you adhere to and which to ignore.  It also does not exempt you from being liable for council tax.

Is the council required to provide evidence of whether it is a company or a corporation?

Shropshire Council is not a private service corporation, but a statutory corporation set up under the Local Government Act 1972 and subsequent legislation.

Is the council required to provide its VAT details/and provide a VAT invoice?

Council Tax is deemed outside the scope of VAT and therefore no VAT invoice is required. The council's VAT registration number: GB 1623 474 72.

Is the council required to provide evidence of my obligation to pay council tax in accordance with Section 34(6) of the Council Tax (Administration and Enforcement) Regulations 1992

Section 34 (6) of the Administration and Enforcement Regulations 1992 states the following:

(6) The court shall make the order if it is satisfied that the sum has become payable by the defendant and has not been paid.

This means that the Court must be satisfied that the council taxpayer is the liable person for council tax has been billed as such in accordance with the Local Government Finance Act 1992 and associated regulations but hasn’t actually paid the bill.