TIP: If you receive an AEO and you’re unsure what to set this up as, for further information contact the issuing court or creditor.
From 6 April 2023, a new single threshold replaces all previous thresholds for this type of attachment.
To prevent any incorrect calculations, you need to remove and re-add any Scottish Earnings Arrests in the first pay run of the 2023/2024 tax year.
This new deduction will use the new legislation thresholds.
To delete a deduction in the pay run:
1. In the deductions section of the pay run, select view details. Make a note of the following information:
You will need these details when you re-add the attachment.
2. To remove any Earnings arrests, select the Discard button
next to the deduction.
To add a new deduction in the pay run:
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In the deductions section of the pay run select Add Deduction. Select Add a new deduction.
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In the Deduction Category drop-down, select Attachment of Earnings Orders.
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In the Deduction Type drop-down, select Scottish Earnings Arrest.
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Add a name and description. Select Save.
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Enter the Date of Order, Reference and Apply Administration Charge you noted earlier.
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Select OK.
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 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 and 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 Sage Payroll uses the correct legislation for the attachment.