Summary
Description
An Attachment of Earnings Order (AEO) is a formal document given to an employer by a court or similar body. It instructs the employer to take money from the employee.
Authorities issue Attachments for many reasons including unpaid fines and child support.
Resolution
Types of AEO
Attachment type | Description |
1971 priority | Payment of unpaid TV licence or road traffic fines. |
Child support (CS) | Issued by the Child Support Agency (CSA) for child maintenance payments. |
Deduction of earnings order (DEO) | Issued by the Scottish CSA for child maintenance payments. |
1971 non-priority | For civil debts such as unpaid credit cards or money owed for work done. |
Pre 92 community charge (Pre 92 CCAEO) | Payment of unpaid poll tax prior to 1992. |
Post 92 community charge (Post 92 CCAEO) | Payment of unpaid council tax after 1992. |
Council tax (CTAEO) | Payment of unpaid council tax. |
Earnings arrest (EA) | A Scottish order for civil debts and fines such as utility bills or unpaid fines. |
Current maintenance arrest (CMA) | A Scottish order for maintenance to a spouse or child. |
Conjoined arrestment order (CAO) | A Scottish order for the combination of more than one EA or CMA. |
Fines enforcement | Issued to ensure the recipient pays the court fine. |
Earnings arrest (2006) (EA 2006) | A Scottish order covering bankruptcy and diligence. |
Central attachment of earnings payment system (CAPS) | Centralised method of payment for debt and maintenance. |
What earnings can be subject to AEO's
Attachable earnings are earnings from which you can deduct an earnings attachment. AEOs can't deduct money from all payments received by an employee. The table below shows what payments are subject to AEO's:
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 |
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: The majority of AEO's deduct from Net pay. If unsure about whether to use Net or Gross deduction, please contact the issuing court or creditor.
If the specific AEO type isn't showing in the Deduction Type drop-down you need to create your own:
- Select Settings, then Payments & Deductions.
- Select the Deductions tab.
- Select Create New Deduction.
- From Deduction category select Net Deductions
- From Deduction Type select Other Net Deduction.
- In the Name box, type in the name you want to use for the AEO.
- Select Save.
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 will not stop deducting automatically.
You will need to work out the value of the deduction manually. If you are unsure of the criteria to use for the deduction, please contact the issuing court or creditor.
AEOs in England and Wales
TIP: If you receive an AEO you may be unsure what to set this up as. For further information 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 National Minimum Wage. Read the HMRC article National Minimum Wage and Living Wage (opens in new tab). You can also contact the ACAS helpline for advice. It’s a criminal offence for employers to not 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 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 | |
Fines Enforcement (if instructed to deduct using tables) | Percentage | Yes | Yes | £1.00 | ||
Child support | CSA | Amount | Yes | Yes | £1.00 | |
Child Support (2012) | 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 | 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 local authority for further advice. |
Community charge attachment of earnings order (post 1992) | Post 92 Community Charge | Percentage | No | No | £1.00 | Contact 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 | Amount | Yes | No | £1.00 |
AEOs in Scotland
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.
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:
-
Date Of Order
-
Reference
-
If Apply Administration charge is selected
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:
-
In the deductions section of the pay run select Add Deduction. Select Add a new deduction.
-
In the Deduction Category drop-down, select Attachment of Earnings Orders.
-
In the Deduction Type drop-down, select Scottish Earnings Arrest.
-
Add a name and description. Select Save.
-
Enter the Date of Order, Reference and Apply Administration Charge you noted earlier.
-
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.
AEOs in Northern Ireland
TIP: If you receive an AEO you may be unsure what to set this up as. For further information 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 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 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 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 local authority for further advice. |
Community charge attachment of earnings order (post 1992) | Post 92 Community Charge | Percentage | No | No | £1.00 | Contact 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 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 |