Attachment of earnings orders

If you receive an AEO and are unsure of what type the order is, contact the issuing court or creditor.

Payment type	AEOs, EAs and DEOs	CTAEOs
Wages and salary (including bonuses and overtime)	Yes	Yes
Holiday pay and other pay advances	Yes	Yes
Pension	Yes	No
Statutory sick pay	Yes	Yes
Statutory redundancy pay	No	No
Statutory maternity pay	No	No
Statutory paternity pay	No	No
Statutory adoption pay	No	No
Redundancy pay	No	No

▼What information appears on an AEO?

The purpose of the order. For example: CTAEO
Who issued the order
The type of debt. For example: council tax
Who the order is payable to. For example: the local authority
The total attachment amount, if applicable
The protected earnings amount, if applicable
The normal deduction rate, if applicable
Case number
Use tables to calculate the deduction amount or deduct a fixed amount. If you need to deduct using the tables, a set should be included with the order
The name of the person to whom the order refers

Recording an AEO

To record an AEO, you’ll need to set it up as a new deduction. Set the category as Attachment of Earnings Order.

This appears alongside your other deductions when you process a pay run.

NOTE: Most AEOs deduct from Net pay. If unsure about whether to use Net or Gross deduction, contact the issuing court or creditor.

The AEOs not listed in Sage Payroll

If the specific AEO type isn't showing in then you need to create your own.

You add the new AEO deduction to the employee during the payment run.

NOTE: You need to keep a running total of the deductions taken. The AEO won’t stop deducting automatically.

You’ll need to work out the value of the deduction manually. If you’re unsure of the criteria to use for the deduction, contact the issuing court or creditor.

▼Create your own AEO

Select Settings, then Payments & Deductions.
Select the Deductions tab.
Select Create New Deduction.
From Deduction select Net Deductions.
From Deduction select Other Net Deduction.
In the Name box, type in the name you want to use for the AEO.
Select Save.

AEOs in different regions

▼AEOs in England and Wales

If you receive an AEO and are unsure of what type the order is, contact the issuing court or creditor.

Protected earnings

To ensure that an employee has enough income, the court may set a protected earnings amount. This is on the order if applicable. Protected earnings mean the employee’s net pay can't fall below the amount entered. Any amount not deducted due to the protected earnings carries into the next period. This depends on the type of attachment that is in use.

Administration fee

For each pay period with an EAO deduction, you may take up to £1.00 from your employee’s earnings in admin costs. You can take this charge even if it reduces the employee’s income below the 60% protected earnings amount.

The admin charge of £1.00 could bring the employees pay below the National Minimum Wage. Read the HMRC article National Minimum Wage and Living Wage. You can also contact the ACAS helpline for advice. It’s a criminal offence for employers not to pay the National Minimum Wage or National Living Wage.

Priority order

Each attachment has a priority assigned to it. If the employee has only one attachment, it’s assigned a priority order one by payroll. If the employee has more than one attachment, they need to deduct in the correct order according to HMRC. The table below shows the priority of the attachments and the deduction order.

Attachment orders relating to:

Maintenance
Fines
Child support
Community Charge and Council Tax

always take priority over non-priority attachments. Such as:

Civil debts
Student loans
CMAs

The rules relating to the priority order of attachments are complex. They can differ depending on the issuing authority. Whether in England and Wales, Scotland or Northern Ireland.

This table shows the settings for the different types of AEOs you may receive:

Order type	To set up in the software	Amount or percentage	Protected earnings	Carried forward	Admin fee	Other information
Attachment of earnings order (fines or maintenance)	1971 Priority	Amount	Yes	Yes	£1.00
	Court Fines (Post April 2004)	Percentage	Yes	Yes	£1.00
Child support	CSA	Amount	Yes	Yes	£1.00
	Child Support DEO	Amount	Yes – fixed at 60%	Yes	£1.00	NOTE: In when recording the PER for this deduction you need to enter the total pay the employee should have remaining. NOT the percentage amount.
Deduction from earnings order	Deduction of Earnings Order	Amount	Yes	Yes	£1.00	Takes priority over existing AEOs.
Attachment of earnings order (civil debt or maintenance)	1971 Non-Priority AEO (Civil Debts)	Amount	Yes	No	£1.00
Community charge attachment of earnings order (pre 1992)	Pre 92 Community Charge	Amount or percentage	No	No	£1.00	Contact the local authority for further advice.
Community charge attachment of earnings order (post 1992)	Post 92 Community Charge	Percentage	No	No	£1.00	Contact the local authority for further advice.
Council tax attachment of earnings order	Council Tax	Percentage	No	No	£1.00	An employee can only have two CTAEOs from the same billing authority active at any one time. Return any further CTAEOs.
Earnings arrest	Earnings Arrest	Amount or percentage	No	No	£1.00	Can operate with a current maintenance arrestment. Can only have one earnings arrest active at any time. If you receive more than one, return it. The employee will get a conjoined arrestment order.
Current maintenance arrestment	Current Maintenance Arrest	Amount	No	No	£1.00	Can operate with a current maintenance arrestment. Can only have one earnings arrest active at any time. If you receive more than one, return it. The employee will get a conjoined arrestment order.
Conjoined arrestment order	Conjoined Arrestment Order	Amount	No	No	£1.00	Issued for more than one earnings arrestment or current maintenance arrestment.
Income Support Deduction Notice	Income Support Deduction Notice	Amount	Yes	No	£1.00
Earnings arrest for bankruptcy and diligence	Earnings Arrest (2006)	Amount or percentage	Yes	Yes	£1.00
Centralised attachments of earnings payment (CAPS)	1971 Non-Priority AEO (Civil Debts)	Amount	Yes	No	£1.00

▼AEOs in Scotland

If you receive an AEO and are unsure of what type the order is, contact the issuing court or creditor.

NOTE: If an employee has more than one Scottish Earnings arrest, Payroll pays the oldest first. It next pays the newest based on the Date of Order you enter.

Protected earnings

To ensure that an employee has enough income, the court may set a protected earnings amount. This is on the order if applicable. Protected earnings mean the employee’s net pay won't fall below the amount entered. Any amount not deducted due to the protected earnings carries into the next period. This depends on the type of attachment that's in use.

Administration fee

For each pay period with an EAO deduction, you may take up to £1.00 from your employee’s earnings in admin costs.
You take this charge from the employee’s net pay. It can reduce the employee’s earnings below the protected earnings figure.

The table below shows the settings for the different types of AEOs you may receive:

Order type	To set up in the software	Amount or percentage	Protected earnings	Carried forward	Admin fee	Other information
Child support	CSA	Amount	Yes	Yes	£1.00
	Child Support (2012)	Amount	Yes – fixed at 60%	Yes	£1.00	NOTE: You must only use this AEO after April 2012 and after you have received notification from the CSA. You must only use this AEO after April 2012 and after you have received notification from the CSA.
Deduction from earnings order	Deduction of Earnings Order	Amount	Yes	Yes	£1.00
Earnings arrest	Scottish Earnings Arrest	Amount or percentage	No	No	£1.00	Can operate with a current maintenance arrestment. Only one earnings arrest can be active at any time. NOTE: You can only add this AEO for the 22/23 tax year onwards. It consolidates the previous Earnings Arrest AEO for post 6 April 2010. Sage Payroll warns you if you try to process a pay run with multiple earnings arrest types
Current maintenance arrestment	Current Maintenance Arrest	Amount	No	No	£1.00	Can operate with a current maintenance arrestment. Can only have one earnings arrest active at any time. If you receive more than one, return it. The employee will get a conjoined arrestment order
Income Support Deduction Notice	Income Support Deduction Notice	Amount	Yes	No	£1.00
Earnings arrest for bankruptcy and diligence	Earnings Arrest (2006)	Amount or percentage	Yes	Yes	£1.00
Centralised attachments of earnings payment (CAPS)	1971 Non-Priority	Amount	Yes	No	£1.00

NOTE: When you add Scottish Earnings Arrest during a pay run, you need to enter the date of the order. This ensures that Sage Payroll uses the correct legislation for the attachment.

▼AEOs in Northern Ireland

If you receive an AEO and are unsure of what type the order is, contact the issuing court or creditor.

Protected earnings

Administration fee

For each pay period with an EAO deduction, you may take up to £1.00 from your employee’s earnings in admin costs. You take this charge from the employee’s net pay. It can reduce the employee’s earnings below the protected earnings figure.

The table below shows the settings for the different AEOs you may receive:

Order type	To set up in the software	Amount or percentage	Protected earnings	Carried forward	Admin fee	Other information
Attachment of earnings order (fines or maintenance)	1971 Priority	Amount	Yes	Yes	£1.00
Fines Enforcement (if instructed to deduct using tables)	Amount	Yes	Yes	£1.00
Child support	CSA	Amount	Yes	Yes	£1.00
	Child Support (2012)	Amount	Yes – fixed at 60%	Yes	£1.00	NOTE: You must only use this AEO after April 2012 and after you have received notification from the CSA.
Deduction from earnings order	Deduction of Earnings Order	Amount	Yes	Yes	£1.00
Attachment of earnings order (civil debt or maintenance)	1971 Non-Priority	Amount	Yes	No	£1.00	Only one 1971 non-priority can be active at any one time.
Community charge attachment of earnings order (pre 1992)	Pre 92 Community Charge	Amount or percentage	No	No	£1.00	Contact the local authority for further advice.
Community charge attachment of earnings order (post 1992)	Post 92 Community Charge	Percentage	No	No	£1.00	Contact the local authority for further advice.
Council tax attachment of earnings order	Council Tax	Percentage	No	No	£1.00	Only two CTAEOs from the same billing authority can be active at any one time. Return any further CTAEOs.
Earnings arrest	Earnings Arrest	Amount or percentage	No	No	£1.00	Can operate with a current maintenance arrestment. Can only have one earnings arrest active at any time. If you receive more than one, return it. The employee will get a conjoined arrestment order.
Current maintenance arrestment	Current Maintenance Arrest	Amount	No	No	£1.00	Can operate with a current maintenance arrestment. Can only have one earnings arrest active at any time. If you receive more than one, return it. The employee will get a conjoined arrestment order.
Conjoined arrestment order	Conjoined Arrestment Order	Amount	No	No	£1.00	Issued for more than one earnings arrestment or current maintenance arrestment.
Income Support Deduction Notice	Income Support Deduction Notice	Amount	Yes	No	£1.00
Earnings arrest for bankruptcy and diligence	Earnings Arrest (2006)	Amount or percentage	Yes	Yes	£1.00
Centralised attachments of earnings payment (CAPS)	1971 Non-Priority	Amount	Yes	No	£1.00

Types of AEO in Sage Payroll

What earnings can be subject to AEO

Recording an AEO

The AEOs not listed in Sage Payroll

AEOs in different regions

Protected earnings

Administration fee

Priority order

Protected earnings

Administration fee

Protected earnings

Administration fee