Council tax recovery
Contents
- Stages of recovery
- Set up an arrangement
- Council tax summons and court hearings
- Liability orders
- Collecting debt
- Attachment of Earnings
- Attachment of Earnings - Guidance for employers
Attachment of Earnings - Guidance for employers
Any Attachment of Earnings orders will confirm:
- the name and payroll number (if known) of the employee who owes council tax
- the amount that needs to be paid
- the council tax reference number you need to use as a payment reference
Deductions
Deductions should begin as soon as possible after the order has been received. We must receive the deducted amounts by the 18th day of the month following the month in which the deduction was made.
As well as the deducted amount you can deduct £1 per transaction from your employee's salary towards administrative costs. A statement of the total amount deducted (including the £1 administrative costs) should be given to your employee.
Deductions should be made each pay day until the total amount has been paid.
If the employee has moved on or has never been in your employment, you need to let us know within 14 days and then you no longer need to do anything.
Earnings include:
- wages or salary (including any fees, bonus, commission, overtime pay or other additions to wages or salary payable under a contract of service)
- statutory sick pay.
Earnings do not include:
- public departments of the Government of Northern Ireland or of a territory outside the United Kingdom
- armed forces pay and allowances
- social security benefits or allowances (including maternity pay)
- disability benefits or allowances
- wages payable to a person as a seaman, other than as a seaman of a fishing boat
- youth training allowances.
Deductions
If your employee is paid in weekly intervals, then their net earnings should be divided by the number of weeks in the pay period.
The table should then be used to work out the appropriate weekly deduction and the resulting amount multiplied by the number of weeks in the period.
|
Net earnings |
Deduction rate (%) |
|---|---|
|
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 |
If your employee is paid in monthly intervals, then their net earnings should be divided by the number of months in the pay period.
The table should then be used to work out the appropriate monthly deduction and the resulting amount multiplied by the number of months in the period.
|
Net earnings |
Deduction rate (%) |
|---|---|
|
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 |
If your employee is paid in regular intervals (but not whole weeks or months), then the employees net earnings should be divided by the number of days.
The following table should then be used to work out the appropriate daily rate, which should then be multiplied by the number of days in the period.
|
Net earnings |
Deduction rate (%) |
|---|---|
|
Not exceeding £11 |
0% |
|
Exceeding £11 but not exceeding £20 |
3% |
|
Exceeding £20 but not exceeding £27 |
5% |
|
Exceeding £27 but not exceeding £33 |
7% |
|
Exceeding £33 but not exceeding £52 |
12% |
|
Exceeding £52 but not exceeding £72 |
17% |
|
Exceeding £72 |
17% in respect of the first £72 and 50% in respect of the remainder |
If your employee is paid in two or more series of payments at regular intervals, then you should select the series with the shortest interval between payments and use the correct table of rates for that period.
In addition, deduct 20 per cent of the net earnings payable in every other series.
If the person is paid in two or more series and all the intervals are the same length, then select one of these, make deductions as described above, and in addition deduct 20% of the net earnings payable in every other series.
Example:
An employee's net pay is £150 weekly and £600 monthly:
- A deduction of £7 is made for the weekly pay
- A further deduction of £120 for the monthly pay (20 per cent of £600).
For employees who are not paid at regular intervals, their net earnings should be divided by the number of days since the last payment and the table should be used to work out the appropriate daily deductions, which in turn should be multiplied by the number of days in the period.
|
Net earnings |
Deduction rate (%) |
|---|---|
|
Not exceeding £11 |
0% |
|
Exceeding £11 but not exceeding £20 |
3% |
|
Exceeding £20 but not exceeding £27 |
5% |
|
Exceeding £27 but not exceeding £33 |
7% |
|
Exceeding £33 but not exceeding £52 |
12% |
|
Exceeding £52 but not exceeding £72 |
17% |
|
Exceeding £72 |
17% in respect of the first £72 and 50% in respect of the remainder |
Example
An employee's net pay:
- (a) £90 (from 1 April to 9 April - nine days)
- (b) £120 (from 10 April to 19 April - 10 days)
- (c) £176 (from 20 April to 30 April - 11 days)
The deductions to be made would be:
(a) 90 ÷ 9 = £10
- Daily deduction = £10 x 3% = 30p
- Deduction to be made for period = 9 x £0.30 = £2.70
(b) 120 ÷ 10 = £12
- Daily deduction = £12 x 3% = 36p
- Deduction to be made for period = 10 x £0.36 = £3.60
(c) 176 ÷ 11 = £16
- Daily deduction = £16 x 5% = 80p
- Deduction to be made for period = 11 x £0.80 = £8.80
If, on the same pay day, your employee will be paid regular period and irregular period earnings, then these amounts should be added together and treated as earnings payable at the regular interval (whether that's weekly or monthly).
Example
An employee receives £250 as normal net weekly pay. In addition £350 is received every 15 days for a different task.
The deductions to be made would be for weekly earnings of £250 + £350 = £600.
The deduction rate for £600 is:
- 17% of the first £370 = 62.90
- plus 50% of the remainder (£230) = £115
- totalling £177.90
Multiple orders
If an order is already in place for an employee, then the new order is still applied (in date sequence) with the later order being applied to the remaining earnings.
If there are two or more orders in place, then no further orders can be added.
See the priorities between attachment of earnings orders document for full details on how to deal with multiple orders.
Orders after 31 March 1993
Priorities between orders where all orders concerned are made post 31 March 1993:
|
Orders |
Action for employer |
Relevant regulations |
|---|---|---|
|
Council tax order and another council tax order |
Apply orders in date order, applying later order to residue of earnings. An employer shall not action a council tax order if there is already two council tax orders in payment. The local authority should be notified accordingly |
Regulation 42(1) of Council Tax (administration and Enforcement) Regulations (SI 1992/613, as substituted by SI 1992/3008 |
|
Council tax order and 1971 Act order |
Apply orders in date order. applying later order to residue of earnings. An employer shall not deal with a ‘non-priority order’ until he has dealt with the council tax order or orders and any other order under the Attachment of Earnings Act 1971or section 31(2) of the Child Support Act 1991. In this context a ‘non-priority order’ is an order made on or after 1 April 1993 under the 1971 Act either wholly or in part in respect of the payment of a judgement debt or payments under an administration order |
Regulation 42(2) of Council Tax (Administration and Enforcement) Regulations (SI 1992/613, as substituted by SI 1992/3008) |
|
Council tax order and Child Support DEO |
Apply orders in date order, applying later order to residue of earnings |
Regulation 42(2) of Council Tax (Administration and Enforcement) Regulations (SI 1992/613, as substituted by SI 1992/3008) |
Making payments
Payments should be made should be made weekly or monthly (according to the payment frequency outlined).
If more than one Attachment of Earnings order is active, please also specify which Liability Order the payment is for.
Please make payment to the following bank accounts depending on the area. You will be advised which area's bank account to use:
Corby area:
- Barclays Bank PLC
- North Northamptonshire Council Income
- Sort code: 20 17 68
- Account: 13629015
East Northamptonshire area:
- Barclays bank
- North Northamptonshire Council
- Sort code: 20 46 50
- Account: 00858846
Kettering area:
- HSBC bank
- North Northamptonshire Council
- Sort code: 40 26 07
- Account: 11268732
Wellingborough area:
- Lloyds bank
- North Northamptonshire Council
- Sort code: 30 15 53
- Account: 02683321
Last updated 30 August 2024