Council Tax debt occurs when you are in ‘arrears’ with your council payments. Even if you are exempt from Council Tax, you may still owe money for your public water and sewerage charges which you will need to pay to your council.
Council tax arrears is considered a ‘priority debt’, so you should not wait to be contacted by the council for overdue payments and should prioritize repaying your council tax over other,
non-priority debts. If you neglect Council Tax arrears, you are likely to be taken to court by your council without delay since, as a priority debt, they have more power to pursue the debt in full. This can significantly increase the money you have to pay overall, by adding to your bill court cost and potentially sheriff fees.