CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

News On Line

Scottish Arrestment threshold review brought forward Published: 17 January 2023 Emailed: 18 January 2023

The Scottish government has taken the step to propose that the arrestment tables be updated from 6 th April 2023. This is usually a process that happens every three years, however, the last time this occurred was in April 2022, just one year ago. In a letter to the Economy and Fair Work Committee, the Scottish minister for public finance, planning and community wealth announced this intention. This is being done to give vulnerable individuals greater resilience during a time of high inflation and increasing interest rates.

This would increase the monthly salary threshold from £566.51 to £655.83.

Tables from 6 April 2023 would therefore be:

Table A: Weekly earnings Net earnings Not Exceeding £150.94

Deductions

Nil

Exceeding £150.94 but not exceeding £545.57

£4.00 or 19% of earnings exceeding £150.94, whichever is the greater £74.98 plus 23% of earnings exceeding £545.57 £138.15 plus 50% of earnings exceeding £820.21

Exceeding £545.57 but not exceeding £820.21

Exceeding £820.21

Table B: Monthly earnings Net Earnings

Deduction

Not exceeding £655.83

Nil

Exceeding £655.83 but not exceeding £2,370.49

£15.00 or 19% of earnings exceeding £655.83, whichever is the greater

Exceeding £2,370.49 but not exceeding £3,563.83

£325.79 plus 23% of earnings exceeding £2,370.49

Exceeding £3,563.83

£600.25 plus 50% of earnings exceeding £3,563.83

Table C: Daily earnings Net Earnings

Deduction

Not exceeding £21.56

Nil

Exceeding £21.56 but not exceeding £77.93 Exceeding £77.93 but not exceeding £117.17

£0.50 or 19% of earnings exceeding £21.56, whichever is the greater

£10.71 plus 23% of earnings exceeding £77.93

Exceeding £117.17

£19.73 plus 50% of earnings exceeding £117.17

(When applying a percentage deduction, the calculation is made to two decimal places of a penny and the result rounded to the nearest whole penny, with an exact half penny being rounded down)

The early announcement of this intention gives software developers adequate time to implement changes and ensure they are tested and rolled out smoothly.

However, we also need to be aware that Scottish order deductions relate to when they are taken, not when the order is given like in the rest of the UK.

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