Attachment of earnings orders
Once a liability order has been obtained through the Magistrates' Court, the Council has the power to instruct an employer to make deductions from the earnings of an employee who owes Council Tax.
The deductions are set by legislation and are based on net pay after deductions for Income Tax, Class 1 National Insurance contributions and superannuation contributions. The amounts from 1 April 2007 are as follows:
Weekly earnings:
- not exceeding £75 - 0%
- exceeding £75 but not exceeding £135 - 3%
- exceeding £135 but not exceeding £185 - 5%
- exceeding £185 but not exceeding £225 - 7%
- exceeding £225 but not exceeding £355 - 12%
- exceeding £355 but not exceeding £505 - 17%
- exceeding £505 - 17% in respect of the first £505 and 50% in respect of the remainder
Monthly earnings:
- not exceeding £300 - 0%
- exceeding £300 but not exceeding £550 - 3%
- exceeding £550 but not exceeding £740 - 5%
- exceeding £740 but not exceeding £900 - 7%
- exceeding £900 but not exceeding £1,420 - 12%
- exceeding £1,420 but not exceeding £2,020 - 17%
- exceeding £2,020 - 17% in respect of the first £2,020 and 50% in respect of the remainder.
The employer is entitled to take a £1 administration fee for each deduction made. Once an attachment of earnings has been set up deductions will continue to be taken until the Council Tax debt has been cleared, as long as the employee remains employed by the same employer.
For further information for employees and employers, please click on the pdf below.
 
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