Attachment Of Earnings Orders (aeos)
AEOs for maintenance or fines, DEOs and CTAEOs take precedence over each other by date of issue. Student loans block the operation of a DEA.
CTAEOs may be operated with a maximum of two permitted from the same billing authority, a third order received from the same authority should be returned. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Two orders made on the same date should be taken by date of receipt. Where they have been made by the same court, agency or local authority they should be referred back for clarification (it would be wise to request confirmation of the advice in writing). Northern Ireland - AEOs for civil debts 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) or Child Support Deduction from Earnings Order (DEO). Order of precedence: • AEOs for maintenance and DEOs • AEOs for civil debts. Scotland - Types of Order - Earnings Arrestment (EA), Current Maintenance Arrestment (CMA), Conjoined Arrestment Order (CAO) and Child Support Deduction from Earnings Order (DEO). Scottish EAs should be treated as priority orders and taken in date of receipt order. Prior to the 1st April 2008, the order of precedence was: 1. Earnings Arrestment 2. Current Maintenance Arrestment. Where an EA and/or CMA or CAO were in operation and a DEO was received, the DEO has to be applied first and only then the EA and/or CMA or CAO. No more than one Earnings Arrestment or one Current Maintenance Arrestment could be operated at any one time. A CAO always cancelled an existing EA or CMA. On receiving an EA or CMA whilst currently operating a CAO, it was necessary to notify the creditor of the court that made the CAO in order that the creditor could apply for his debt to be included. No printing, copying or reproduction permitted. Order of precedence from 1st April 2008 (Scotland) - Whilst the effective date is 1st April, employers were given 7 days grace to make changes so in effect the new rules came into effect in the new tax year. Provisions within The Bankruptcy and Diligence (Scotland) Act 2006 changed significantly the prioritising and processing of AEOs in Scotland. The former priority applied to EAs was replaced by a ‘sharing’ principle. N.B.: Child Support DEOs, being the only UK wide deduction order, take priority over all three types of Scottish order). Where more than one Attachment Order is received and there are insufficient earnings to permit full recovery, a five step approach is necessary: • calculate arrestable earnings in the normal manner. Net earnings after tax, NICs, DEO deductions, pension contributions (including AVCs, but not stakeholder or personal pension plan contributions),
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