Introduction
This guide will show you how to set up deduction orders for employees, what types are supported, and how the system calculates them.
Contents
- Where can I enter a deduction order for my employee?
- What deduction order options are available in the system?
- How does the system calculate the deduction orders?
Where can I enter a deduction order for my employee?
Within the employee profile is a Deduction Orders tab, this is where you can input any deduction order instructions you have received for an individual.
To add a Deduction Order click + Create in the top right-hand corner.
Once set up, the deduction order will continue to be deducted unless you instruct the system, to end the deduction order you need to add an End Date (of course, only advisable if you have been instructed to do so by the governing body in writing) or it will end automatically if the total amount due has been exhausted.
What deduction order options are available in the system?
- Deduction from Earnings Order (DEO)
- Civil judgement debt Attachment of Earnings Order (AEO)
- Council Tax Attachment of Earnings Order (CTAEO) - England
- Council Tax Attachment of Earnings Order (CTAEO) - Wales
- Magistrates Court Attachment of Earnings Order (MCAEO)
- Direct Earnings Attachment (DEA)
- Direct Earnings Attachment (DEA) - higher rate
- Earnings Arrestment (EA) - Scotland
How does the system calculate the deduction orders?
Deduction from Earnings Order (DEO)
This is where you would enter Child Maintenance deduction orders which are not calculated on a percentage basis but use the period amounts given, alongside protected earnings, within the deduction order letter.
You can also use the DEO field to deduct a fixed amount for other deduction orders when instructed to.
Civil judgement debt Attachment of Earnings Order (AEO)
This is where you would enter court orders which are not calculated on a percentage basis but use the period amounts given, alongside protected earnings and total amount owed, within the court order letter.
Council Tax Attachment of Earnings Order (CTAEO) - England
Table 1 - Deductions from weekly earnings
| Net earnings | Deduction rate (percentage) |
| Not exceeding £75.00 | Nil |
| Exceeding £75.00 but not exceeding £135.00 | 3 |
| Exceeding £135.00 but not exceeding £185.00 | 5 |
| Exceeding £185.00 but not exceeding £225.00 | 7 |
| Exceeding £225.00 but not exceeding £355.00 | 12 |
| Exceeding £355.00 but not exceeding £505.00 | 17 |
| Exceeding £505.00 | 17 in respect of the first £505.00 and 50% in respect of the remainder |
Table 2 - Deductions from monthly earnings
| Net earnings | Deduction rate (percentage) |
| Not exceeding £300.00 | Nil |
| Exceeding £300.00 but not exceeding £550.00 | 3 |
| Exceeding £550.00 but not exceeding £740.00 | 5 |
| Exceeding £740.00 but not exceeding £900.00 | 7 |
| Exceeding £900.00 but not exceeding £1420.00 | 12 |
| Exceeding £1420.00 but not exceeding £2020.00 | 17 |
| Exceeding £2020.00 | 17 in respect of the first £2020.00 and 50% in respect of the remainder |
Council Tax Attachment of Earnings Order (CTAEO) - Wales
Weekly Table
| Net Earnings (Welsh Orders) from 01 April 2022 | Deduction Rate (%) |
| Not Exceeding £105 | 0 |
| Exceeding £105 but not exceeding £190 | 3 |
| Exceeding £190 but not exceeding £260 | 5 |
| Exceeding £260 but not exceeding £320 | 7 |
| Exceeding £320 but not exceeding £505 | 12 |
| Exceeding £505 but not exceeding £715 | 17 |
| Exceeding £715 | 17 on first £715 and 50 on net earnings over |
Monthly Table
| Net Earnings (Welsh Orders) from 01 April 2022 | Deduction Rate (%) |
| Not Exceeding £430 | 0 |
| Exceeding £430 but not exceeding £780 | 3 |
| Exceeding £780 but not exceeding £1,050 | 5 |
| Exceeding £1,050 but not exceeding £1,280 | 7 |
| Exceeding £1,280 but not exceeding £2,010 | 12 |
| Exceeding £2,010 but not exceeding £2,860 | 17 |
| Exceeding £2,860 | 17 on first £2,860 and 50 on net earnings over |
Magistrates Court Attachment of Earnings Order (MCAEO)
Table A - Deductions from weekly earnings
| Net Earnings | Deduction Rate % |
| Not exceeding £55.00 | Nil |
| Exceeding £55.00 but not exceeding £100.00 | 3 |
| Exceeding £100.00 but not exceeding £135.00 | 5 |
| Exceeding £135.00 but not exceeding £165.00 | 7 |
| Exceeding £165.00 but not exceeding £260.00 | 12 |
| Exceeding £260.00 but not exceeding £370.00 | 17 |
| Exceeding £370.00 | 17 in respect of the first £370.00 and 50% in respect of the remainder |
Table B - Deductions from monthly earnings
| Net Earnings | Deduction Rate % |
| Not exceeding £220.00 | Nil |
| Exceeding £220.00 but not exceeding £400.00 | 3 |
| Exceeding £400.00 but not exceeding £540.00 | 5 |
| Exceeding £540.00 but not exceeding £660.00 | 7 |
| Exceeding £660.00 but not exceeding £1040.00 | 12 |
| Exceeding £1040.00 but not exceeding £1480.00 | 17 |
| Exceeding £1480.00 | 17 in respect of the first £1480.00 and 50% in respect of the remainder |
Direct Earnings Attachment (DEA) - Standard Rate
Table A: Deductions from earnings rate (standard)
| Weekly Earnings | Monthly Earnings | Deduction rate to apply (percentage of net earnings) |
| Up to £100 | Up to £430 | Nil |
| Between £100.01 and £160 | Between £430.01 and £690 | 3 |
| Between £160.01 and £220 | Between £690.01 and £950 | 5 |
| Between £220.01 and £270 | Between £950.01 and 1160 | 7 |
| Between £270.01 and £375 | Between £1160.01 and £1615 | 11 |
| Between £375.01 and £520 | Between £1615.01 and £2240 | 15 |
| £520.01 or more | £2240.01 or more | 20 |
Note: Net earnings are gross pay, less income tax, Class 1 National Insurance and superannuation contributions as per HMRC guidelines
Direct Earnings Attachment (DEA) - Higher Rate
Table B: Deductions from earnings rate (higher)
| Weekly Earnings | Monthly Earnings | Deduction rate to apply (percentage of net earnings) |
| Up to £100 | Up to £430 | 5 |
| Between £100.01 and £160 | Between £430.01 and £690 | 6 |
| Between £160.01 and £220 | Between £690.01 and £950 | 10 |
| Between £220.01 and £270 | Between £950.01 and 1160 | 14 |
| Between £270.01 and £375 | Between £1160.01 and £1615 | 22 |
| Between £375.01 and £520 | Between £1615.01 and £2240 | 30 |
| £520.01 or more | £2240.01 or more | 40 |
Earnings Arrestment (EA) - Scotland
Table A - Deductions from weekly earnings
| Net earnings | Deduction |
| Not exceeding £150.94 | Nil |
| Exceeding £150.94 but not exceeding £545.57 | £4.00 or 19% of earnings exceeding £150.94, whichever is greater |
| Exceeding £545.57 but not exceeding £820.21 | £74.98 plus 23% of earnings exceeding £545.57 |
| Exceeding £820.21 | £138.15 plus 50% of earnings exceeding £820.81 |
Table B - Deductions from monthly earnings
| Net earnings | Deduction |
| Not exceeding £655.83 | Nil |
| Exceeding £655.83 but not exceeding £2,370.49 | £15.00 or 19% of earnings exceeding £655.83, whichever is greater |
| Exceeding £2,370.49 but not exceeding £3,563.83 | £325.79 plus 23% of earnings exceeding £2,370.49 |
| Exceeding £3,563.83 | £600.25 plus 50% of earnings exceeding £3,563.83 |
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