Does council tax debt affect your credit score?
Not directly. Councils do not report council tax to credit reference agencies, and a council tax liability order is not a CCJ. But some of the things that can follow from it do show up.
In short
- Councils do not share council tax payment information with credit reference agencies such as Experian, Equifax and TransUnion.
- A council tax liability order is made by the magistrates' court. It is not a County Court Judgment, and it is not on your credit file.
- A notice of enforcement or a bailiff visit does not appear on your credit file either.
- A Debt Relief Order, IVA or bankruptcy does, for 6 years.
- Council tax is still a priority debt. Not affecting your credit score does not make it safe to ignore.
The short answer
Missing council tax payments does not usually affect your credit score. Councils do not report council tax to the credit reference agencies, Experian, Equifax and TransUnion, in the way banks, card companies and phone providers do.
Is a liability order a CCJ?
No. This is one of the most common worries.
A County Court Judgment (CCJ) is made by the county court, and is recorded on your credit file for six years.
A council tax liability order is made by the magistrates’ court. It is not a CCJ, and it is not recorded on your credit file.
Council tax is collected through the magistrates’ court, so it does not normally lead to a CCJ at all.
What about bailiffs?
A notice of enforcement, a bailiff visit or a controlled goods agreement is not recorded on your credit file.
What can affect your credit score
Some of the things that can happen because of council tax arrears do affect your credit file:
- Missed council tax payments No
- A council tax liability order No
- A notice of enforcement or bailiff visit No
- An attachment of earnings for council tax No
- A special payment arrangement with your council No
- A debt management plan Lenders you owe usually record defaults or reduced payments. Sometimes
- A Debt Relief Order, IVA or bankruptcy Recorded for 6 years. Yes
- Borrowing to pay council tax, then missing those payments Yes
A charging order on your home, which a council can apply for if you own it and owe £1,000 or more, is registered against the property at the Land Registry, where any future lender will see it.
It is still a priority debt
Because it does not show on your credit file, it can be tempting to leave council tax until last. That is the wrong way round. A liability order lets your council send bailiffs, take money from your wages or benefits, and in England, in rare cases, ask the court to consider prison. See what happens if you don’t pay council tax.
Pay council tax, or agree an arrangement, before credit cards, loans and catalogues.
Do not borrow to pay it
A loan or credit card to clear council tax arrears will show on your credit file, and turns a debt you could pay off gradually, with no interest, into one that charges interest. An arrangement with your council is almost always better. See special payment arrangements.
Can lenders see council tax arrears?
Not on your credit file. But some lenders, such as mortgage lenders, ask about arrears on your application, or look at your bank statements. Be honest if you are asked.
Where are you with your council tax?
Choose the one that fits best and an adviser will call you back. Free, confidential, and no obligation.
- I have had a reminder or a final notice A letter from the council, but no court involvement yet
- I have had a court summons A hearing date at the magistrates court
- A liability order has been made The court has granted the council recovery powers
- Enforcement agents have contacted me A letter or a visit from a bailiff firm
- Money is being taken from my wages or benefits An attachment of earnings or a benefit deduction
- I am not sure, or something else
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