Rent and Credit > Does Council Tax get reported to credit reference agencies?

Does Council Tax get reported to credit reference agencies?

Wollit Team1 minute read · Updated 17th September 2024

Council tax is a payment that homeowners and renters in the UK have to make to help fund local services. Council tax pays for things like trash pickup, schools, and emergency services.

If you’re wondering whether this gets reported to the credit reference agencies, the short answer is no. However, if you don’t pay council tax, some of the consequences can affect your credit score. Here is how this works, what happens if you miss payments, and what to do if you miss a payment.

How does council tax work?

Council tax is a local tax that councils collect from residents based on the value of their property. Each home is put into a valuation band, which decides how much council tax is owed.

Usually, the person living in the property is responsible for paying council tax. This includes homeowners and tenants.

Council tax is usually paid over ten months of the year, with two months (often February and March) where no payments are required. Some councils may allow payments over twelve months instead.

Does council tax get reported to credit agencies?

The short answer is no—council tax payments are not reported to credit agencies like Experian, Equifax, or TransUnion. Council tax is not technically a form of credit like loans or credit cards. Because of this, local councils do not have to report your payment history to credit agencies.

Can council tax affect my credit score?

Since council tax payments do not appear on your credit report, paying your council tax on time will not help improve your credit score. Likewise, missing payments won't directly hurt your score either.

However, If you fail to pay your council tax and the council takes legal action against you (like applying for a liability order), this information can appear on your credit report as a public record. This can actually end up hurting your credit score.

Can I improve my credit score by paying my council tax on time?

No, paying your council tax on time will not improve your credit score since this information is not reported to credit agencies.

If you’re looking for a way to build your credit, consider a specialised credit-building app instead. One such app is Wollit.

Wollit is an app that reports your monthly subscription as loan repayment to the credit reference agencies, helping you build your credit history and potentially improving your credit score.

On top of this, Wollit can also report your monthly rent payment to Experian, adding another line in your credit report that shows lenders you're responsible and pay your bills on time.