In certain cases we may need to deduct money directly from your earnings, benefits or pension credit.
We send you a letter, with a copy going to your employer or benefits agency. The letter instructs that the debt is to be cleared by deduction from wages or salary, or income support, jobseekers allowance, pension credits, employment and support allowance (ESA) or Universal Credit on a scale fixed by law.
The amount we can currently take is £3.75 per week, only one attachment of benefit can be set at any time.
If you are employed, an attachment of earnings could be made. Two attachments can be set on your account at the same time and deductions are made separately for each attachment. The amount deducted is a percentage fixed by law, in addition, the employer can charge £1 per deduction for their administration costs.
Once an attachment of earnings has been set up it won't be cancelled until payment is received in full.
The Attachment of Earnings Order is a legal document and places certain duties on you as an employer. Failure to comply with an AEO may lead to a criminal prosecution and a fine.
On receiving an AEO the employer must -
- If the debtor is not, or ceases to be, employed -
- inform us within 14 days of the date of the order, or from the date their employment ceases
- If the debtor is employed -
- make deductions from the employee’s net earnings as soon as possible
- inform the employee the total deductions made under the AEO (normally on their payslip)
- pay the deductions to us by the 18th day of the month following the month in which the deduction was made (a remittance sheet to send with your payments can be downloaded here)
Deductions must be made each pay day until -
- the total amount specified on the order has been repaid
- the person has left your employment
- or the AEO has been cancelled by us
If the total to be deducted under the order is reduced, we advise you in writing.
A maximum of two council tax AEOs may be running on a debtor at any one time.
Paying two AEO’s
The amount of the orders should not be combined. A deduction should be made for the first order, the net earnings figure should then be reduced by the deducted amount, before the second deduction is made.
An employer can deduct an extra £1 per deduction, from the employee’s earnings, to cover their own administration costs.
Individual payments can be made by BACS, quoting the following details -
Bank - NatWest PLC
Sort code 62-24-11
A/c No. 00000000 this is a special collection account number with unique sort code
Reference No. 0000510000******** where the last eight digits are your council tax account number
Multiple payments should be paid quoting -
Bank - NatWest PLC
Sort code 56-00-06
A/c No. 03889149
A remittance slip is required and should be sent by email to email@example.com or by post to -
Cash and banking
PO Box 15