Attachment of Earnings

Attachment of Earnings (or court orders) describe the ability of a court to instruct an employer to deduct money from an employees wages in repayment of a debt.

When an employee receives a court order, the employer is leagally obliged to deduct the required amount from the employees pay before it is paid. This often involves complex calculations including percentages, fixed band deductions, protected earnings and minimum contribution amounts.

Luckily, PayRun.io does all the hard work for you!

Supported Attachment or Earning Types

PayRun.io supports many types of attachment (see Types of Attachment for a full list). Each type has specific attributes that contribute to how the attachment deduction is calculated.

Attribute Description Options
Carry Forward Determines if arrears are carried into the next payment period true / false
Use Fixed Deduction Band Indicates that the deduction amount is determined using deduction band tables See deduction bands
Fixed Protected Amount Idicates that this type of order includes a fixed protected amount % / £
Allow Protected Earnings Determines if this type of court order can have an amount of protected earnings true / false
Protected Amount The amount of the employees payment that does not qualify for arrestment % / £
Deduction Amount The amount to be arrested from the employees payments % / £
Student Loan Treatment Describes the treatment of student loan deductions when the attachment is active (Before / After / Stops) Student Loan
Allow Multiple Determines if it is possible to have multiple instances of this attachment type true / false

Arrestable Pay

Arrestable pay describes the amount of pay that can be considered for the arrestment calculation. This amount is selected from the employees pay after tax and national insurance deductions have been applied.

Example:

"Bad Debt Brian" has a court order attached to his salary. The AEOP (Attachment of Earnings Priority Order) states that £100.00 should be deduected with £50.00 of protected earnings.

Brian earns £120.00 in week one. His PAYE tax due is £18.00 and his class 1 NIC contribution is £12.00. After deductions, Brians Arrestable Pay amount is £90.00.

The order states that Brian has £50.00 of protected earnings. This results in a £40.00 arrestment being made.

Because shortfalls in AOEP repayments must be carried forward, Brian also incurs £60.00 of arrears. The arrears are considered in the next payment period and reclaimed if sufficent arrestable pay exists.

Non-Arrestable Pay

Statutory parental payments are not subject to arrestment. PayRun.io refers to these payments as "non-arrestable".

Non-Arrestable Pay Codes

  • Statutory Maternity Pay (SMP)
  • Statutory Paternity Pay (SPP)
  • Statutory Adoption Pay (SAP)
  • Statutory Shared Parental Leave (ShPP)

In addition to tax and national insurance, some court order types include a portion of protected earnings. This can be a fixed cash amount or percentage of the arrestable pay.

Once the arrestable pay is calculated, it is then posible to work out the deduction.

Adding an Attachment of Earnings

Like all other payments and deductions, attachment of earnings are controlled using pay instructions. The Attachment of Earnings Pay Instruction (AoeInstruction) allows you select the attachment type and include any order specific values.

AoE Pay Instruction Example

<?xml version="1.0"?>
<AoePayInstruction xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance">
  <StartDate>2018-04-01</StartDate>
  <CaseNumber>COURTREF001</CaseNumber>
  <AoeType>AOE</AoeType>
  <IssueDate>2018-04-01</IssueDate>
  <StopDate xsi:nil="true">
  <TotalToPay>1499.99</TotalToPay>
  <PreviousPayments>0.00</PreviousPayments>
  <PreviousArrears>0.00</PreviousArrears>
  <ClaimAdminFee>true</ClaimAdminFee>
</AoePayInstruction>
{
  "AoePayInstruction": {
    "StartDate": "2018-04-01",
    "CaseNumber": "COURTREF001",
    "AoeType": "AOE",
    "IssueDate": "2018-04-01",
    "StopDate": null,
    "TotalToPay": "1499.99",
    "PreviousPayments": "0.00",
    "PreviousArrears": "0.00",
    "ClaimAdminFee": "true"
  }
}

AoE Pay Instruciton Properties

See the reference data page for more information.

Note: Some propeties can only be set dependent on the type of arrestment selected. For example, you cannot set a protected earnings amount when the selected AoE type does not allow protected earnings.

Property Description Required
Start Date The starting scope for the pay instruction (see Understanding Pay Instructions for more info.) true
End Date The ending scope date of the instruction (see Understanding Pay Instructions for more info.) false
Description Text to be displayed on the employee's payslip. (Optional) false
Case Number The case number (or unique identifier) of the court order true
AoE Type The type of attachment (see below for allowed values) true
Issue Date The starting deduction date for the order true
Stop Date The date when the order ceases false
Total to Pay The total amount to be collected against this order false
Previous Payments Any amount already paid on this order before existing in PayRun.io false
Previous Arrears Any amount owed in arrears on this order before it existed in PayRun.io false
Claim Admin Fee Determines if the employer is claiming the £1.00 administation fee for processing the order true
Protected Earnings Amount A cash value amount to be protected from arrestment false
Deduction Amount The cash amount to be arrested from the employee each payment period false
Protected Earnings Percentage The percentage value of earnings to be protected from arrestment false
Deduction Percentage The percentage value to be deducted from the employees earnings false

Mutually Exclusive Properties

Some AoE instruction properties can only be set if another property is null. You can set either:

  • Protected Earnings Amount or Protected Earnings Percentage
  • Deduction Amount or Deduction Percentage

Claiming the Admin Fee

In compenstation for the administation overhead of collecting court order arrestments, the employer is allowed to claim a £1.00 administration fee from employee payments.

Setting the Claim Admin Fee property to true instructs PayRun.io to include a £1.00 deduction line in the employees payslip.

The employer can deduct an administration fee for each active court order the employee has.

Previous Payments and Previous Arrears Properties

For situations where the court order was issued prior to the payroll existing in PayRun.io, you can include previous payments and previous arrears in the AoE Pay Instruction. Theses values are then considered when the arrestment value is calculated.

Linked AoE Instructions

It is sometimes nescessary to change the deduction behvaiour of an attachment. An example of this is if the employee appeals and is allowed to reduce the deduction amount of the order.

PayRun.io supports this behaviour by linking AoE pay instructions. Any AoE instruciton that has a matching Case Number is considered linked. During the arrestment calculation process, all (in scope) linked instructions are considered.

AoE Pay Lines

When an in-scope AoE pay instruction is detected, the PayRun.io calculation service will generate a AoE Pay Line. The pay line details the amount of arrestment made and indicates any change to the arrears amount.

Arrears on the Pay Line

AoE pay lines are considered cumulatively. The total amount arrested (against the court order) and balance of arrears is calculated by aggregating all historical pay lines.

AoE pay lines store a postive or negitive arrears value to represent the changing state of the arrears balance. A positive number indicates arrears have increased; a negative number indicates arrears have decreased.

Example:

Week Pay Line Arrears Arrears Balance
1 £20.00 £20.00
2 £-15.00 £5.00
3 £0.00 £5.00
4 £-5.00 £0.00

Attachment of Earnings in the Commentary

Like all other PayRun.io calculations, a full explanation of the calculation can be seen within the employees calculation commentary report. The commentary exactly describes the steps taken to reach the arrestment and arrears amounts.

Example:
The following calculation commentary extract details a Direct Earnings Attachment (higher rate) court order deduction.

--   Begin AttachmentOfEarningsCalculator
--     Attachment Type: [DEAHIGHER] - Direct Earnings Attachment Higher
--     Description: Direct Earnings Attachments - Higher Rate
--     Case Number: DEA-001
--     Issue Date: 2018-01-01
--     Student loan deductions are stopped
--     Arrears are not carried forward
--     Opening Balances:
--       Total To Pay: 2,300.00
--       Payments: 0.00
--       Arrears: 0.00
--       Outstanding: 2,300.00
--     Period Pay Breakdown:
--       Arrestable Pay: 430.00
--       Non Arrestable Pay: 0.00
--     Protected Earnings:
--       Fixed percentage: 60.00%
--       Protected earnings: 258.00 = 430.00 * 60.00%
--     Calc Method: Fixed Deduction Bands
--       Band info:
--         Frequency: Monthly
--           | Lower      | Upper      | Rate       | Above Rate |
--           |------------|------------|------------|------------|
--           | 0.00       | 430.00     | 5.00%      | 0.00%      |
--           | 430.00     | 690.00     | 6.00%      | 0.00%      |
--           | 690.00     | 950.00     | 10.00%     | 0.00%      |
--           | 950.00     | 1,160.00   | 14.00%     | 0.00%      |
--           | 1,160.00   | 1,615.00   | 22.00%     | 0.00%      |
--           | 1,615.00   | 2,240.00   | 30.00%     | 0.00%      |
--           | 2,240.00   | N/A        | 40.00%     | 0.00%      |
--           |------------|------------|------------|------------|
--         Selected band: 0.00 to 430.00 (@ 5.00%)
--       Desired deduction: 21.50 = 430.00 * 5.00%
--     Results:
--       Arrestable Pay: 430.00
--       Non Arrestable Pay: 0.00
--       Desired Deduction: 21.50
--       Protected Earnings: 258.00
--       Available Pay: 172.00 = 430.00 - 258.00
--       Arrears Repaid: 0.00
--       Final Deduction: 21.50 = MIN(172.00, 21.50 + 0.00)
--   End AttachmentOfEarningsCalculator

Types of Attachment

PayRun.io supports many different types of court order attachment. The type of attachment is determined (in the AoE Pay Instruction) by specifying the a special AoE Type Code. The codes and attachment types are detailed below.

Supported Types


AEOP - AEO Priority Order

Attachment of Earnings Order - 1971 Priority

Attribute Value
Code AEOP
Priority Sequence 100
Student Loan Before Student Loan
Fixed Band Deduction false
Carry Forward Arrears true
Fixed Protection N/A
Allow Protected Earnings true
Deduction Type £
Allow Multiple true

AEO - AEO Fine

Attachment of Earnings Order - Fines Enforcement

Attribute Value
Code AEO
Priority Sequence 200
Student Loan Sops Student Loan
Fixed Band Deduction true
Carry Forward Arrears true
Fixed Protection N/A
Allow Protected Earnings true
Deduction Type N/A
Allow Multiple true

AEO Fixed Deduction Bands - Weekly

Lower Upper Percentage Above Band
0.00 55.00 0.00% -
55.01 100.00 3.00% -
100.01 135.00 5.00% -
135.01 165.00 7.00% -
165.01 260.00 12.00% -
260.01 370.00 17.00% 50.00%

AEO Fixed Deduction Bands - Monthly

Lower Upper Percentage Above Band
0.00 220.00 0.00% -
220.01 400.00 3.00% -
400.01 540.00 5.00% -
540.01 660.00 7.00% -
660.01 1,040.00 12.00% -
1,040.01 1,480.00 17.00% 50.00%

CSA - Child Support

Child Support Agency (CSA) - Child maintenance payments Pre 2012

Attribute Value
Code CSA
Priority Sequence 300
Student Loan Before Student Loan
Fixed Band Deduction false
Carry Forward Arrears true
Fixed Protection N/A
Allow Protected Earnings true
Deduction Type £
Allow Multiple false

CSA2012 - Child Support 2012

Child Support Agency (CSA) - Child maintenance payments Post 2012

Attribute Value
Code CSA2012
Priority Sequence 400
Student Loan Stops Student Loan
Fixed Band Deduction false
Carry Forward Arrears true
Fixed Protection 60.00%
Allow Protected Earnings true
Deduction Type %
Allow Multiple false

DEO - Deduction of Earnings Order

Deduction of Earnings Order

Attribute Value
Code DEO
Priority Sequence 500
Student Loan Before Student Loan
Fixed Band Deduction false
Carry Forward Arrears true
Fixed Protection N/A
Allow Protected Earnings true
Deduction Type £
Allow Multiple false

AEONP - AEO Non Priority Order

Attachment of Earnings Order - 1971 Non-Priority Civil Debts

Attribute Value
Code AEONP
Priority Sequence 600
Student Loan After Student Loan
Fixed Band Deduction false
Carry Forward Arrears false
Fixed Protection N/A
Allow Protected Earnings true
Deduction Type £
Allow Multiple true

CCPRE92 - Community Charge Pre-92

Community Charge Attachment Order - pre-92

Attribute Value
Code CCPRE92
Priority Sequence 700
Student Loan Stops Student Loan
Fixed Band Deduction false
Carry Forward Arrears false
Fixed Protection N/A
Allow Protected Earnings false
Deduction Type % or £
Allow Multiple true

CCPOST92 - Community Charge Post 92

Community charge attachment of earnings order (post 1992)

Attribute Value
Code CCPOST92
Priority Sequence 800
Student Loan Stops Student Loan
Fixed Band Deduction false
Carry Forward Arrears false
Fixed Protection N/A
Allow Protected Earnings false
Deduction Type %
Allow Multiple true

CTAEO - Council Tax Attachment

Council tax attachment of earnings order - Post 2007

Attribute Value
Code CTAEO
Priority Sequence 900
Student Loan Stops Student Loan
Fixed Band Deduction true
Carry Forward Arrears false
Fixed Protection N/A
Allow Protected Earnings false
Deduction Type N/A
Allow Multiple false

CTAEO Fixed Deduction Bands - Weekly

Lower Upper Percentage Above Band
0.00 75.00 0.00% -
75.01 135.00 3.00% -
135.01 185.00 5.00% -
185.01 225.00 7.00% -
225.01 355.00 12.00% -
355.01 505.00 17.00% 50.00%

CTAEO Fixed Deduction Bands - Monthly

Lower Upper Percentage Above Band
0.00 300.00 0.00% -
300.01 550.00 3.00% -
550.01 740.00 5.00% -
740.01 900.00 7.00% -
900.01 1,420.00 12.00% -
1,420.01 2,020.00 17.00% 50.00%

MCAEO - Magistrates Court Attachment

Magistrates Court Attachment of Earnings Order

Attribute Value
Code MCAEO
Priority Sequence 950
Student Loan Before Student Loan
Fixed Band Deduction true
Carry Forward Arrears false
Fixed Protection N/A
Allow Protected Earnings false
Deduction Type N/A
Allow Multiple false

MCAEO Fixed Deduction Bands - Weekly

Lower Upper Percentage Above Band
0.00 55.00 0.00% -
55.01 100.00 3.00% -
100.01 135.00 5.00% -
135.01 165.00 7.00% -
165.01 260.00 12.00% -
260.01 370.00 17.00% 50.00%

MCAEO Fixed Deduction Bands - Monthly

Lower Upper Percentage Above Band
0.00 220.00 0.00% -
220.01 400.00 3.00% -
400.01 540.00 5.00% -
540.01 660.00 7.00% -
660.01 1,040.00 12.00% -
1,040.01 1,480.00 17.00% 50.00%

EA - Earning Arrest

Scottish Earning Arrestment

Attribute Value
Code EA
Priority Sequence 1000
Student Loan Stops Student Loan
Fixed Band Deduction true
Carry Forward Arrears false
Fixed Protection N/A
Allow Protected Earnings false
Deduction Type N/A
Allow Multiple false

For attachments issued before 6th April 2016

EA Fixed Deduction Bands Pre 2016-04-06 - Weekly

Lower Upper Percentage Fixed Amount Minimum Deduction
0.00 106.17 0.00% 0.00 -
106.18 383.74 19.00% 0.00 £4.00
383.75 576.92 23.00% 52.74 -
576.93 N/A 50.00% 97.17 -

EA Fixed Deduction Bands Pre 2016-04-06 - Monthly

Lower Upper Percentage Fixed Amount Minimum Deduction
0.00 460.06 0.00% 0.00 -
460.07 1,662.88 19.00% 0.00 £15.00
1,662.89 2,500.00 23.00% 228.54 -
2,500.00 N/A 50.00% 521.07 -

For attachments issued from 6th April 2016

EA Fixed Deduction Bands post 2016-04-06 - Weekly

Lower Upper Percentage Fixed Amount Minimum Deduction
0.00 113.68 0.00% 0.00 -
113.69 410.90 19.00% 0.00 £4.00
410.91 617.82 23.00% 56.47 -
617.83 N/A 50.00% 104.06 -

EA Fixed Deduction Bands post 2016-04-06 - Monthly

Lower Upper Percentage Fixed Amount Minimum Deduction
0.00 494.01 0.00% 0.00 -
494.02 1,785.61 19.00% 0.00 £15.00
1,785.62 2,684.51 23.00% 245.40 -
2,684.52 N/A 50.00% 452.15 -

CMA - Current Maintenance Arrest

Current Maintenance Arrestment

CMA are calculated by a daily rate from either the issue date or the last payment date

Attribute Value
Code CMA
Priority Sequence 1100
Student Loan Before Student Loan
Fixed Band Deduction false
Carry Forward Arrears false
Fixed Protection £10.00 per day
Allow Protected Earnings true
Deduction Type £
Allow Multiple false

CAO - Conjoined Arrestment Order

Conjoined Arrestment Order

CAO are used to combine multiple EA's or CMA's into a single arrestment. A CAO will be a combination of either EA or CMA and never a mix of both.

Attribute Value
Code CAO
Priority Sequence 1200
Student Loan Before Student Loan
Fixed Band Deduction false
Carry Forward Arrears false
Fixed Protection N/A
Allow Protected Earnings false
Deduction Type £
Allow Multiple true

ISD - Income Support Deduction

Income Support Deduction Notice

Attribute Value
Code ISD
Priority Sequence 1300
Student Loan Stops Student Loan
Fixed Band Deduction false
Carry Forward Arrears false
Fixed Protection N/A
Allow Protected Earnings true
Deduction Type %
Allow Multiple true

EA2006 - Earnings Arrest (2006)

Earnings arrest for bankruptcy and diligence

Attribute Value
Code EA2006
Priority Sequence 1400
Student Loan Before Student Loan
Fixed Band Deduction true
Carry Forward Arrears true
Fixed Protection N/A
Allow Protected Earnings true
Deduction Type N/A
Allow Multiple true

For attachments issued before 6th April 2016

EA2006 Fixed Deduction Bands Pre 2016-04-06 - Weekly

Lower Upper Percentage Fixed Amount Minimum Deduction
0.00 106.17 0.00% 0.00 -
106.18 383.74 19.00% 0.00 £4.00
383.75 576.92 23.00% 52.74 -
576.93 N/A 50.00% 97.17 -

EA2006 Fixed Deduction Bands Pre 2016-04-06 - Monthly

Lower Upper Percentage Fixed Amount Minimum Deduction
0.00 460.06 0.00% 0.00 -
460.07 1,662.88 19.00% 0.00 £15.00
1,662.89 2,500.00 23.00% 228.54 -
2,500.00 N/A 50.00% 521.07 -

For attachments issued from 6th April 2016

EA2006 Fixed Deduction Bands post 2016-04-06 - Weekly

Lower Upper Percentage Fixed Amount Minimum Deduction
0.00 113.68 0.00% 0.00 -
113.69 410.90 19.00% 0.00 £4.00
410.91 617.82 23.00% 56.47 -
617.83 N/A 50.00% 104.06 -

EA2006 Fixed Deduction Bands post 2016-04-06 - Monthly

Lower Upper Percentage Fixed Amount Minimum Deduction
0.00 494.01 0.00% 0.00 -
494.02 1,785.61 19.00% 0.00 £15.00
1,785.62 2,684.51 23.00% 245.40 -
2,684.52 N/A 50.00% 452.15 -

CAPS - Centralised Attachment Payment

Centralised attachments of earnings payment

Attribute Value
Code CAPS
Priority Sequence 1500
Student Loan After Student Loan
Fixed Band Deduction false
Carry Forward Arrears false
Fixed Protection N/A
Allow Protected Earnings true
Deduction Type £
Allow Multiple true

DEA - Direct Earnings Attachment

Direct Earnings Attachments

Attribute Value
Code DEA
Priority Sequence 1600
Student Loan Stops Student Loan
Fixed Band Deduction true
Carry Forward Arrears false
Fixed Protection 60.00%
Allow Protected Earnings true
Deduction Type N/A
Allow Multiple false

DEA Fixed Deduction Bands - Weekly

Lower Upper Percentage
0.00 100.00 0.00%
100.01 160.00 3.00%
160.01 220.00 5.00%
220.01 270.00 7.00%
270.01 375.00 11.00%
375.01 520.00 15.00%
520.01 N/A 20.00%

DEA Fixed Deduction Bands - Monthly

Lower Upper Percentage
0.00 430.00 0.00%
430.01 690.00 3.00%
690.01 950.00 5.00%
950.01 1,160.00 7.00%
1,160.01 1,615.00 11.00%
1,615.01 2,240.00 15.00%
2,240.01 N/A 20.00%

DEAHIGHER - Direct Earnings Attachment Higher

Direct Earnings Attachments - Higher Rate

Attribute Value
Code DEAHIGHER
Priority Sequence 1600
Student Loan Stops Student Loan
Fixed Band Deduction true
Carry Forward Arrears false
Fixed Protection 60.00%
Allow Protected Earnings true
Deduction Type N/A
Allow Multiple false

DEAHIGHER Fixed Deduction Bands - Weekly

Lower Upper Percentage
0.00 100.00 0.00%
100.01 160.00 6.00%
160.01 220.00 10.00%
220.01 270.00 14.00%
270.01 375.00 22.00%
375.01 520.00 30.00%
520.01 N/A 40.00%

DEAHIGHER Fixed Deduction Bands - Monthly

Lower Upper Percentage
0.00 430.00 0.00%
430.01 690.00 6.00%
690.01 950.00 10.00%
950.01 1,160.00 14.00%
1,160.01 1,615.00 22.00%
1,615.01 2,240.00 30.00%
2,240.01 N/A 40.00%

DEAFIXED - Direct Earnings Attachment Fixed

Direct Earnings Attachments - Fixed Rate

Attribute Value
Code DEAFIXED
Priority Sequence 1600
Student Loan Before Student Loan
Fixed Band Deduction false
Carry Forward Arrears false
Fixed Protection 60.00%
Allow Protected Earnings true
Deduction Type £
Allow Multiple false