Council tax attachment of earnings: deductions and help

How council tax deductions from wages work in England and Wales, and who to contact about an error or hardship.

What exactly is it?

After obtaining a council-tax liability order in England and Wales, the council can issue an attachment of earnings requiring the employer to deduct from earnings and pay the council. This is different from a County Court attachment used for some other debts.

The notice and applicable regulations set out the information required and deadlines. Give accurate information and contact the council promptly if you cannot understand or meet a requirement. Do not rely on an eight-day deadline borrowed from a different procedure.

What is a council tax AOE?

It is one of the recovery methods available following a liability order. Up to two council-tax attachment orders can operate at once, with deductions calculated under the rules for multiple orders. An employer can charge a permitted £1 administration fee for each deduction, rather than necessarily once per month.

What happens when you get one?

The employer uses the statutory council-tax deduction bands and the relevant net earnings. This is not the same as a County Court order setting an individual protected-earnings figure. A low earnings band can result in no deduction for that pay period.

If deductions leave you unable to meet essential costs, ask the council to review recovery and consider an affordable alternative. Provide a budget and any evidence of vulnerability. An active order is not beyond review, although the employer must follow it until properly changed or withdrawn.

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How much will be deducted from my pay?

The percentage depends on net earnings and the pay period. Multiple orders, overtime and irregular payments can affect the calculation. Check the current council-tax tables and ask payroll or the council to show how the deduction was worked out.

For an example of the official calculation rules, see this council’s employer guidance. Do not use a DWP direct-earnings or County Court calculator for a council-tax order.

When will my employer start deductions?

The employer should follow the start date and payment instructions in the order and regulations. Council-tax deductions are paid to the council, not routed through the County Court. Check your payslip and retain it as a record of deductions and any permitted administration charge.

Will overtime payment be taken into account?

If you decide to work overtime to increase the amount you are paid each month, your company will have to take more from your salary as your income has increased.

However, this can be one way to clear the full debt back quicker. 

What if I Don’t Comply?

The order creates legal duties for the employer and duties to supply specified information. Ignoring those duties or giving false information can have legal consequences. Follow the notice and get advice if you believe it is wrong; do not assume ordinary difficulty paying automatically leads to imprisonment.

Can I ask my company not to do it?

Once an attachment of earnings has been applied, the debt must be paid back through your salary. 

Your company has to action these deductions.   

Are redundancy payments included?

Statutory redundancy pay is treated differently from ordinary wages for these deductions. Other final payments, such as wages or pay in lieu, may need separate assessment. Ask payroll and the council to explain the treatment of each element rather than assuming every leaving payment is exempt.

Can money be taken from maternity payments?

An attachment of earnings cannot be used to take money from statutory maternity. 

However, it can be used to deduct from any contractual maternity payments received. 

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Can my employer take money out from sick pay?

If you are off work due to poor health and receive sick pay from your company each week or month, this will be treated as your income and subject to debt enforcement as per the attachment of earnings. 

Most people will be paid less than their full standard income when receiving sick pay. 

Therefore, they could pay less towards their debt during this time, and some people won’t have to repay anything back. 

Can you be sacked for having one?

Most people cannot be sacked because of an attachment of earnings. 

However, some people working in professional financial jobs may face employment trouble.

Can you challenge it?

Contact the council promptly if the person, debt, order or calculation is wrong. Ask for the liability-order details and a breakdown, and provide supporting evidence. For hardship, request a review and help from a free debt adviser. Payroll generally cannot simply ignore a valid order while a complaint is considered.