Council Tax and your Credit Record

By | January 1, 2017

credit recordOne of the most common queries which arises regarding Council Tax is the question of whether it is shown on, or affects, your Credit Record.

How is Council Tax recovered ?

If an amount of Council Tax remains unpaid after a Reminder Notice or Final Notice has been issued then the Local Authority will issue a Court Summons. The Court Summons is an application to the Magistrates’ Court for the granting of a Liability Order .Once a Local Authority has been granted a Liability Order then they are provided with a range of options they can use to recover the monies which remain outstanding.

I thought it would be a CCJ that used ?

Unlike many debts Council Tax is dealt with specifically under it’s own legislation and does not utilise the usual route of application to the County Court for a County Court Judgement. Applications for a Liability Order are dealt with by the Magistrates’ Court.

Is a Liability Order shown on my Credit Record ?

Unlike many other types of debts, even if you pay your Council Tax late or miss Council Tax payments, it is not shown on your Credit Record. If you receive a Council Tax Court Summons or a Liability Order then these details will also not be shown on your Credit Record and so will not affect your ability to obtain credit.

Can Council Tax ever affect my Credit Record ?

Although Council Tax itself doesn’t directly affect your Credit Record if the Local Authority successfully forces you in to Bankruptcy then this will be recorded on your Credit Record. If you are struggling with debt then any Debt Relief Order, Bankruptcy or I.V.A, you apply for may also affect your Credit Record.

Advice & Assistance from LGFA92

Good quality help with your Council Tax dispute can be hard to come across – there’s a lack of independent, expert, places where you can get the help you need however LGFA92 are here to change that. See how we can help today

Contact us today. Email us at [email protected], Call our Council Tax helpline on 0191 6451118.

This article is solely the view of LGFA92, the Council Tax experts, based on our interpretation of legislation. Your local authority is free to dispute this view. A binding decision may require the intervention of a valuation tribunal.