Regs 37 & 38 Council tax (Administration & Enforcement) Regulations 1992
Where a liability order has been obtained by the Council, action may be taken by means of an Attachment to Earnings where the debtor is in employment.
The Council is required to complete an order as defined by the regulations and an authorised officer must sign the order.
A copy of the order is sent to the debtor and his /her employer and the employer must comply with the order by making deductions in accordance within the percentages laid down in tables A, B & C of within the schedule to the regulations.
From 1st April 2007 the following levels apply;
Table A - Deductions from Weekly Earnings
|
Net Earnings |
Deduction Rate % |
|
Up to £75 |
0 |
|
Exceeding £75 but not £135 |
3 |
|
Exceeding £135 but not £185 |
5 |
|
Exceeding £185 but not £225 |
7 |
|
Exceeding £225 but not £355 |
12 |
|
Exceeding £355 but not £505 |
17 |
|
Over £505 |
17 in respect of the first £505 and 50% in respect of the remainder. |
Table B - Deductions from Monthly Earnings
|
Net Earnings |
Deduction Rate % |
|
Up to £300 |
0 |
|
Exceeding £300 but not £550 |
3 |
|
Exceeding £550 but not £740 |
5 |
|
Exceeding £740 but not £900 |
7 |
|
Exceeding £900 but not £1420 |
12 |
|
Exceeding £1420 but not £2020 |
17 |
|
Exceeding £2020 |
17 in respect of the first £2020 and 50% in respect of the remainder. |
Table C - Deductions from Daily Earnings
|
Net Earnings |
Deduction Rate % |
|
Up to £11 |
0 |
|
Exceeding £11 but not £20 |
3 |
|
Exceeding £20 but not £27 |
5 |
|
Exceeding £27 but not £33 |
7 |
|
Exceeding £33 but not £52 |
12 |
|
Exceeding £52 but not £72 |
17 |
|
Exceeding £72 |
17 in respect of the first £72 and 50% in respect of the remainder |
A booklet produced by the Department of Constitutional Affairs is available by clicking the link below;
Attachment Orders - A guide for employers - Her Majesty’s Courts Service
The following amounts are deductible;
Where an employer fails to comply with the order the Council may request the magistrates court to summons the employer to court to explain why payment has been withheld.
Where there is no reasonable excuse the employed may be fined by the magistrates.
Deductions should be made from the wage / salary of the debtor and the first payment should be made to the Council within 19 days of the deduction being made.
As previously outlined the deductions are based on table provided within the regulations. From 1st October 1998 the amount of the deductions have changed in accordance with new legislation.
Where a deduction is made the employer may deduct an additional £1 per deduction in respect of an administration fee this will be met from the debtors wages/salary.
An employer can be the issuer of the order as well as being the employer of the individual.
Ashton v Hackney LBC
An Order shall remain in force until either discharged by Council or paid in full by whichever method.
The employer must notify the debtor in writing of the total of amount deducted & to be deducted and this must be given at time of pay statement or as soon as practicable thereafter.
If the employer does not have the debtor in his employment or ceases to have him in his employment then he must notify the Authority within 14 days.
If a new employer knows that an order is in force then he should notify the Billing Authority accordingly.
The debtor should notify the Council of changes of employers within 14 days & give full details of pay etc. (As per the information previously given).
Failure to do so could lead to fines being imposed (level 2 £100 or where false information is supplied level 3 £400 )
Where a person is employed by the Crown then his Chief Officer or Minister will be deemed to be his employer.
All action for MoD personnel is taken under the Army Act 1955
If the amount has been paid the Council must notify debtors employer.
The Council may discharge the order if it so wishes.
AOEs made under AOE Act 1971 or Child Support Act 1991 may occasionally take priority, in the majority of cases they should be taken in chronological order
Amendments with effect from 1st October 1998 allow only 2 stacked orders and reduction in percentage deductions.
The Council Tax (Administration and Enforcement) (Amendment) (England) Regulations 2003
These regulation amend the attachment of earnings orders to exclude Working Tax Credit and Child Tax Credit (operative from 6th April 2003) from the definition of earnings
Quite often, a local authority only finds out about a debtor's employment details late in the enforcement process, after a failed attempt to levy distress, during an application for a warrant to commit the debtor to prison, when the magistrates’ court must inquire into the debtor’s means (regulation 47(2) of the principal regulations).
Sections 79(2) and (3) of the Local Government Act amend paragraph 5 of Schedule 4 to the 1992 Act to allow regulations to be made to enable billing authorities the recovery of costs incurred in trying to levy distress or incurred during the aborted committal proceeding through an attachment of earnings order.
Regulation 6 of the amending regulations inserts new regulation 37(1A) into the principal regulations allowing the recovery of costs incurred following an abortive attempt to levy distress or committal to prison via an attachment of earnings order
The Council Tax (Administration and Enforcement) (Amendment) (Wales) Regulations 2004
The Council Tax (Administration and Enforcement) (Amendment) (England) Regulations 2004
No amounts can be deducted in respect of Enforcement Agents fees
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