Council tax debt can accrue in several ways, including:
Late payment of council tax bills – If you miss a payment or are late in paying your council tax bill, you may incur additional fees and interest charges.
Incorrect billing – Sometimes, council tax bills are calculated incorrectly, which can lead to underpayment or overpayment. If you have been undercharged, you may accrue debt when the shortfall is identified, and the balance is due.
Change in circumstances – If your personal or financial circumstances change, such as losing your job or going through a separation or divorce, you may find it difficult to keep up with your council tax payments, which can lead to debt.
Disputes with your local council – If you dispute the amount of council tax you are being charged, you may withhold payment until the dispute is resolved. If the dispute is not resolved in your favour, you may have accrued debt during the period of non-payment.