Soldato
The lady on the phone said to send a council tax bill to avoid it going any further, so hopefully should be resolved. Only thing bothering me is i have to put in the effort and money (albeit small) to prove innocence for something they cocked up.
I seriously think Inland Revenue and Customs should compensate you for putting you under unnecessary stress, expense (however minor), and as you say, effort you shouldn't have been forced to expend for their mistake. Once it's over, I would write to them with a serious letter of complaint demanding some form of compensation.

