More than 9,000 taxpayers in Reading are owed a share of £1.6 million in council tax refunds – the average refund due being £168.
Reading Borough Council (RBC) currently owes £1,647,678.91 of overpaid council tax to its residents, an investigation by the Chronicle using Freedom of Information (FOI) powers shows.
Additionally, the FOI investigation revealed the council is owed more than £77 million in unpaid council tax by residents.
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Who does the council owe?
There are 9,778 taxpayers owed money in the borough in total. The highest amount an individual taxpayer is owed is £7,732.58.
The authority says that there are a number of reasons why accounts are overpaid, including people paying in advance and then moving out of the borough and council tax bands being altered.
A spokesman for RBC said: “When someone pays by direct debit, the council is in most instances able to refund the overpaid council tax quickly back into their bank account. This is not always possible for people who pay by other methods however.
“Credit applications are always sent with adjustment notices advising of the credit and detailing how to claim the refund. These are issued to the forwarding address, or their last known address.
“If someone has moved out of the area and not provided their forwarding address, it is not always possible to trace them.
“The council does have a system in place which monitors credits on an ongoing basis and seeks to proactively refund the credit balances.
“Credit balances remain on the accounts in recognition of the fact that they may be claimed at any point and a credit balance would only be written off as a last resort when there is no realistic prospect of locating the council taxpayer.”
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Why the council writes off some debts
The council is itself owed a huge £77,156,032.96 by taxpayers.
Reading Borough Council’s council tax collection rate was 95 per cent last year but this will rise to 99 per cent as payments are pursued this year, a council spokesman said.
The spokesman added: “In terms of residents who owe council tax, we do not hold specific or accurate data on reasons for non-payment. The council will however actively pursue all council tax debts owed.
“In the case of customers who abscond, who are subject to insolvency action or where the debt is statute barred, the council may consider the debt is suitable to be written-off as a last resort.”
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