Council Tax AEO

Council Tax Attachment of Earnings Order (CTAEO)

WHAT IS A COUNCIL TAX ATTACHMENT OF EARNINGS ORDER?

Where there is non-payment of council tax the local authority can apply to a magistrates' court for a liability order against the defaulter. If a court grants a liability order an authority has a number of options for recovering the outstanding amount. One of these is a Council Tax AEO (CTAEO).

The CTAEO will be in a form prescribed in the regulations. It contains the name of the debtor, his payroll number (if known) and the local authority reference. It confirms that the named person is liable for council tax and specifies the amount of council tax that has still to be paid. Deductions in line with the order should be made as soon as possible after the order has been received.

 What the employer must do?

  On receiving a CTAEO the employer must:

• seek to make deductions from the employee's net earnings under the CTAEO as soon as possible
• calculate the deductions using the tables in the regulations
• tell the employee the total deductions made under the order, normally at the same time as his pay statement is issued
• pay the deductions to the local authority no later than the 18th day of the month following the month in which the deduction was made

 Attaching an Order to an Employee within BrightPay

• Select the employee to whom the CTAEO is to apply
  Go to Payslips >, then double click on the employees name for whom you have received the order for.
• Deductions
  Under deductions click the Add button
• Attachment of Earnings Order
  From the dropdown, select Attachment Orders
• Add Attachment Order
  Click Add attachment Order, and from the dropdown select Council Tax Attachment of earning order CTAEO.

SETTING UP THE CTAEO

TYPES AND DATES 

• Description
  Enter a description for the CTAEO
• Reference
  Enter the reference number, you will find this on the letter telling you to apply the CTAEO for the employee.

DATES

• Date Made
  Enter the date the CTAEO Attachment was made.
• Date to apply from
  The date to apply the CTAEO Attachment from.
• Date to stop
  The CTAEO Attachment should only be stopped once the full amount of the order has been paid, Or if you received notification from the council to stop the AOE.

AMOUNTS AND STATUS

To access this screen, click the Amounts and Status tab.

• Total amount to be paid
  The order will show what the total amount to be paid is. Enter in the box provided.
• Admin Charge
  You the employer can deduct £1 as an administration charge for deducting the attachment.

STATUS

• Cumulative amount paid at start
  If the employee has already paid some of the attachment (i.e.in another or previous employment) enter the amount here.
• Cumulative amount paid in this employment
  If the employee has already paid part or you have done a mid year set up, enter the amount already paid here.

 Click Save.

 BrightPay will now apply the attachment of earnings order.