It is arguable that the whole council for the year is included whether or not you are in arrears. This is because the debt falls due in April and is effectively credit being repaid over the year.
It has been tested in the courts regarding an administration and could come into IVAs too.
Personally I've always thought the current year's bill should be included as the debt falls due as soon as your Council tax bill is issued but this never happened and we always made an allowance in the i&e for it to be paid.
Recently we noticed that some councils were adding the current years council tax to their PODs when the submitted them (from councils that we know reject, that caused a few meeting failures!). This coupled with the Kaye v Oxfordshire Distict Council case re business rates, means we've started include this years' council tax in our proposals (the additional income from not paying the CT direct would obviously go into the arrangement and would step down accordingly come the start of the new council tax year).
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I work in insolvency as an IVA Drafter. I've been working in this industry for over 7 years and have seen every scenario you can imagine. I am experienced & knowledgeable in this field, so if I can offer any assistance to anyone, I'll be glad to help.
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The opinions posted in this forum are mine alone and not those of my employer (though I'm sure they'd agree with me!)
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