Attachment of Earnings

If a Liability Order has been granted for council tax arrears, the local authority can apply for an Attachment of Earnings Order. This means that the Council can ask your employer to make deductions from your salary to pay towards your outstanding arrears.

A Council Tax Attachment of Earnings Order should not be confused with an Attachment of Earnings Order for an unpaid County Court Judgment or court fines.

Can the bailiff company set up an Attachment of Earnings Order?

Yes they can and in fact, it is a very common application for enforcement companies to undertake. A Notice of Enforcement must be sent to you beforehand.

How much will be deducted from my salary under an Attachment of Earnings Order?

The amount that can be deducted is set out in legislation and will be calculated by your employer from your net earnings.  This is the figure after tax and national insurance has been deducted. applied.  The amount of “earnings” will include any  bonuses and overtime.

To calculate how much will be deducted by your employer under a Council Tax  Attachment of Earnings Order please see below.

Net   Weekly Earnings

Weekly   Deductions

Deduction   Rate

Up to £75 Nil 0%
Between £75 and £135 £2.25   to £4.05 3%
Between £135 and £185 £6.75   to £9.25 5%
Between £185 and £225 £12.95   to £15.75 7%
Between £225 and £355 £27.00   to £42.60 12%
Between £355 and £505 £60.35   to £85.85 17%
Exceeding   £505 Minimum   £85.85 17% in   respect of the first £505 and 50% of the remainder

Net   Monthly Earnings

Monthly   Deductions

Deduction   Rate

Up to  £300 Nil 0%
Between £300 and £550 £9.00   to £16.50 3%
Between £550 and £740 £27.50   to £37.00 5%
Between £740 and £900 £51.80   to £63.00 7%
Between £900 and £1,420 £108.00   to £170.40 12%
Between £1,420 and £2,020 £241.40   to £343.40 17%
Exceeding   £2,020 Minimum   £343.40 17% in   respect of the first £2,020 and 50% in respect of the remainder

I already have a deduction from my wages for a loan.

An  Attachment of Earnings Order   is a legal order  and accordingly, it takes priority over any other deductions.

I have an Attachment of Earnings order, can the council apply for another one?

If you already have one Council Tax Attachment of Earnings Order in place, a second  AEO can still be imposed. However, if there are two Attachment of Earnings orders in place, no further orders can be imposed.

Will deductions be made if I am receiving  sick pay?

Yes they will.  The deduction is worked out using your net wages. Therefore, if your earnings reduce, the  amount of deductions will also reduce.

Can I make an alternative proposal to pay?

No you cannot.  An Attachment of Earnings Order is a legal document.  Once the order has been sent to your employer, it may  only be stopped once the  full outstanding amount is paid. You would need to contact the local authority for full details.

The Attachment of Earnings Order means that I cannot pay my mortgage or rent.

If the deductions under the Attachment of Earnings Order mean that your home is at risk (or you do not have enough money to feed and cloth your family),  you must contact the local authority immediately.

What will happen if I lose my job or change employer?

If you change jobs, or your employment ceases, you MUST tell the local authority  immediately.  If you fail to do so, your account could be passed to an enforcement agent.

Commentary from Bailiff Advice

If you have any queries regarding a council tax  attachment of earnings order or about a Liability Order in general, you can email a question to us using our very popular Enquiry Form.  Alternatively, you can contact our helpline. See our Contact page for details.

An Introductory to Taking Control of Goods Regulations 2013 can be read here.