PAYE (Pay As You Earn)
Attachment of Earnings Orders (AEOs, DEAs)
The Enforcement of Fines and Other Penalties Regulations (Northern Ireland) 2018 21 May 2018 The Enforcement of Fines and Other Penalties Regulations (Northern Ireland) 2018 comes into operation on 1 June 2018. This mirrors changes brought in for England and Wales 2005/6 to allow for the recovery of fines through earnings following on from The Courts Act 2003. The Justice (2016 Act) (Commencement No.2) Order (Northern Ireland) 2018 brings into operation a new provision in relation to the collection of fines and other penalties. New enforcement powers include deductions from benefits, attachment of earnings (AEO), bank account orders and vehicle seizure orders. Although the Order states AEO’s, the Regulations seem to be borrowing from the Direct Earnings Attachment (DEA) rules rather than the AEO rules for the recovery of fines. Also the DEA specifies tables for Daily, Weekly and Monthly rates, however the new AEO for Northern Ireland only specifies Weekly and Monthly. We want to highlight the anomaly as when speaking to our software developer colleagues the new Order seems to mirror standard DEA logic for weekly and monthly. If a Great Britain DEA were applied then that would also mirror the calculation requirement for the AEO for Northern Ireland but only if DEA were applied to the payslip. It depends how your software is coded, some may restrict the name for an employee’s payslip and some may be able to apply DEA to the payslip or a variation of DEA with other indications.
With an effective date of 1 June, there has been little notice provided, however the use of DEA capabilities could cover the requirement.
Back to Contents
The Diligence against Earnings (Variation) (Scotland) Regulations 2018 13 November 2018
The Diligence against Earnings (Variation) (Scotland) Regulations 2018 have been laid before Parliament and changes to the rate of deductions are due to come into force from 6 April 2019.
A review of the Diligence against Earnings Regulations was conducted earlier this year. By the Accountancy in Bankruptcy. This has resulted in The Diligence against Earnings (Variation) (Scotland) Regulations 2018 being laid in Parliament. The Debtor Scotland Act 1987, Schedule 2, sets out the amount that can be deducted from a debtor’s wages in an earnings arrestment. An earnings arrestment is when a debtor’s employer receives an instruction to deduct an amount from an employee’s wages and pays it direct to their creditors.
Ministers gave an undertaking to review the tables every three years.
The deduction tables will be amended (reproduced below) with effect from 6 April 2019
Table A: Deductions from Weekly Earnings Net Earnings
Deduction*
Not exceeding £122.28
Nil
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 411 of 629
Made with FlippingBook - Online magazine maker