Thanks for your answer. I went to the council office today and got a repayment plan sorted. The first debit is going to come off on 1st of August and I have received all the documentation from them confirming that me and my wife are liable to pay all the taxes.
The guy at the Council office also told me that he wont put my case down as arrears nor any summons need to be carry out.
So are you 100% definite that I shouldn't let Home Office know about this because the other expert on this same forum told me to inform the Home Office.
Also, what If the home office has already made that check with the council before I set up a payment plan.
Please confirm that and I would rate to finish with satisfied with expert.