Attachment Of Earnings Orders (aeos)
Table C: deductions from daily earnings
Amount of net earnings (net earnings are gross pay, less tax, National Insurance and pension contributions)
Deduction from earnings – lower rate
Deduction from earnings – higher rate
Not exceeding £15 COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Nil 5% Exceeding £15 but not exceeding £23 3% 6% Exceeding £23 but not exceeding £32 5% 10% Exceeding £32 but not exceeding £39 7% 14% Exceeding £39 but not exceeding £54 11% 22% Exceeding £54 but not exceeding £75 15% 30% Exceeding £75 20% 40% Note: in exceptional circumstances DWP may issue a fixed rate deduction notice to replace the formula above. All other criteria will remain unchanged. The latest guide on DEAs, published February 2017 has confirmed the table values remain unchanged. On the 3rd April 2020 employers were instructed not to make any deductions from earnings for both current and new DEA orders in either April, May or June 2020. This was extended by a notice on 7th July 2020 and was not rescinded until 28th August 2020 whereupon all DEA rules and deductions were reinstated. Fines Enforcement Scheme A pilot scheme, introduced on 5th April 2004, and rolled out nationwide from April 2005, extending the use of Attachment of Earnings Orders (AEOs), to improve the enforcement of fines. Magistrates courts are able to issue Schedule 5 Fines Orders under the Courts Act 2003 that require the employer to use percentage deduction tables in the same way as they do for council tax AEOs. The tables that apply are the pre-1st April 2007 tables even if the order is made after that date. An order will advise the employer of the total debt owed by the employee and how often deductions are to be made (weekly, monthly), and a table showing the percentage rate to be applied to the employee’s earnings. No printing, copying or reproduction permitted. The employer must: • comply with the order • write to the Court within 10 days where the person named is not an employee • write to the Court within 10 days if the employee leaves • write to the Court within 7 days on learning that a new employee has an existing order, providing details of the employee’s earnings. Orders come into force on the day received by the employer and deductions should begin the
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