Net Earnings
Deduction
Not exceeding £460.06
Nil
Exceeding £460.06 but not exceeding £1,662.88 Exceeding £1,662.88 but not exceeding £2,500.00
£15.00 or 19% of earnings exceeding £460.06, whichever is the greater £228.54 plus 23% of earnings exceeding £1,662.88 £421.07 plus 50% of earnings exceeding £2,500
Exceeding £2,500
The Scottish Parliament have confirmed that the values published in the statutory instrument should be used and therefore it may be necessary to hard code software to use the value published rather than carry forward the calculated value.
SSI The Diligence against Earnings (Variation) (Scotland) Regulations 2012
With thanks to member Andrew Ketley for supplying us with the technical angle on this issue.
DILIGENCE AGAINST EARNINGS (SCOTLAND) REGULATIONS
20 December 2012
We reported in News on 13 December that there was an anomaly within table B and there was some concern that the difference of 1p (achieved by rounding at the end of the calculation) would constitute a breach of the regulations.
The Policy team has received an update regarding the anomaly.
The Diligence against Earning Regulations have now completed the 28 day parliamentary process and during this time no objections were raised. Consequently, we can confirm that these Regulations will come into force on 6 April 2013. It has been brought to our attention that there is a small anomaly within table B, which will result in someone who has arrestable earnings of exactly £2,500 per month, after rounding is applied, paying 1p per month more towards the repayment of their debt than someone who is paid £2500.01. When designing the tables, it was not anticipated that the calculation would be rounded from zero. Instead they were designed so that the threshold amount (in this case £421.07) would be deducted from earnings, after which a calculation would be performed in respect of 50% of earnings exceeding £2500.00 (rounding having previously been calculated at the preceding thresholds). We now of course appreciate that this is not the case and that, for programming purposes, the rounding is performed at the end of the calculation. There was some concern that the difference of 1p (achieved by rounding at the end of the calculation) would constitute a breach of the regulations. Whilst it would be preferable to use the exact calculations as set out in the regulations, we think the difference is so minimal that we can accept, for those who have neither the time or opportunity to insert further programming changes, that a slightly different calculation will be applied for those earning exactly £2,500. It is unfortunate that this anomaly was not picked up during the review process which would have allowed for recalculation at that time. Given that this is a tiny variation to the published figures, caused by rounding a part penny, it is understandable that this would not have drawn notice. We don’t think there can be many people earning exactly £2,500 after tax and other deductions, if any, so the impact is likely to be minimal. The effect will be that, for the years of operation of these tables, someone who earns exactly £2,500 will pay an extra 12p per year towards their debt. With such an insignificant effect, we do not believe that it would be
CIPP Policy News Journal
12/04/2013, Page 26 of 362
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