Attachment of Earnings…Council Tax

If you cannot pay your Council Tax arrears and a Liability Order has been granted, the local authority can legally apply for an Attachment of Earnings Order. This means that the Council can instruct your employer to make deductions directly from your salary to pay towards your outstanding arrears. The employer is also allowed to deduct a fee of  £1 to cover their  administration costs.

A Council Tax Attachment of Earnings Order (CTAEO) 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, legislation does provide that an enforcement company can set up an Attachment of Earnings Order on behalf of the local authority.

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 (ie: after tax and national insurance have been 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 (CTAEO)  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.

Many people have outstanding loans from their employer  ( for instance…. for the  purchase of a yearly season ticket) which are deducted monthly from their wages. Council Tax Attachment of Earnings Order (CTAEO)  is a legal order  and accordingly, it takes priority.

I already have one CTAEO…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 , in date order, with the later order being applied to the residue of earnings. However, if there are two CTAEO’s in place, no further orders can be imposed.

Will deductions be made if I am receiving  sick pay?

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

Can I make an alternative proposal to pay?

No. An Attachment of Earnings Order is a legal document and 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.

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, bailiff/enforcement agent action may be taken.

Note 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 popular Question page. Alternatively, you can contact us by phone. Details are on our Contact page.

A simple overview of the new Taking Control of Goods Regulations 2013 can be read here.