PART 1: DATES, DEFINITIONS AND OBLIGATIONS
Income Payments Order (IPO) An order issued by the courts requiring a bankrupt (or a third party who makes payments to a bankrupt) to make affordable contributions towards their debts from income for a period of up to three years. Orders may be varied by the court on application of either the bankrupt or the trustee. Prior to 1st April 2004 where bankruptcy was discharged prior to the end of the period of the order the order automatically ceased. Income Support Deduction Notices (ISDNs) These notices were, until April 2013, issued by the Department of Work and Pensions and require employers to make deductions from pay to recover overpaid amounts of Income Support paid to the employee immediately following a return to work after a trade dispute. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Reciprocal Enforcement of Maintenance Orders (REMOs) Countries bound by the Hague Convention including The European Economic Community have reciprocal arrangements to ensure that Maintenance Orders made by Courts in the United Kingdom are both recognised and enforced in other countries and vice-versa. REMOs are administered under the terms of attachment orders in general. UK employers should be prepared to receive child support orders from overseas courts relating to employees now resident in the UK but who have dependent children abroad. It remains to be seen whether or not such arrangements persist now that the UK has formally left the EU, however it is unlikely that any changes will occur given the extensive nature of the agreements. Voluntary Deduction from Earnings Arrangement (VDEA) A voluntary arrangement introduced as part of the 2006 child support reforms where an employee can ask the employer to make deductions from net pay in respect of child support and forward these to the Child Maintenance Service (CMS). The employer is not obliged to agree to deductions under a VDEA as the arrangement has no more legal force than any other voluntary net pay deduction. As a result if the employer chooses to place the VDEA last in a list of deductions and in consequence there is insufficient net pay the employer is not obliged to tell the CMS, that is the responsibility of the employee. Determining court order priority Priority is determined by the type of order, and in: • England, Wales and Northern Ireland by the date on which it was made • Scotland by the date on which the order is received. No printing, copyi g or reproduction permitted. England and Wales - Attachment of Earnings Orders for civil debts, i.e. non-priority orders, take precedence over each other by the date of issue (Where an employer receives more than one, application may be made to the court for their consolidation). Types of Order - Attachment of Earnings Order (AEO), Child Support Deduction from Earnings Order (DEO), and Council Tax Attachment of Earnings Order (CTAEO). Order of precedence: 1. AEO for maintenance or a fine, DEO or CTAEO, 2. AEO for civil debt, DEA or student loan.
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