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 (there is a definition of net earnings in Annex A). 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; and 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. The employer may deduct an additional £1 from the employee’s pay in respect of each deduction towards his own administrative costs. Notification The employer is required to notify the local authority about certain matters, and may be fined for failing to do so. Where the employer receives an order relating to someone whom he does not employ his should, within 14 days, tell the local authority. Likewise he should tell the authority when a debtor for whom a CTAEO is in place leaves his employment, again within 14 days. The employer should also tell the relevant local authority if anyone subject to a CTAEO becomes his employee. This should be done within 14 days of the debtor becoming the employee, or of the date when the employer becomes aware than an order is in force against the employee, whichever is latest. What the debtor must do A debtor must tell the authority which made the CTAEO if he changes employment. In notifying such a change the debtor should give details, in so far as he is able, of his earnings; expected deductions from such earnings in respect of income tax, national insurance and superannuation; the name and address of the employer and his work or identify number. This information must be given with 14 days of the change of employment. Debtors could be subject to a fine if they fail to notify local authority What the authority must do An authority must tell the employer when the whole amount to which a CTAEO relates has been paid, including when the payment was not made by means of a CTAEO. An authority may, on its own account, or on application by the debtor or the debtor’s employer, make an order discharging the CTAEO. Where the CTAEO is discharged the authority should notify the employer.
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 (there is a definition of net earnings in Annex A). 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; and 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. The employer may deduct an additional £1 from the employee’s pay in respect of each deduction towards his own administrative costs. Notification The employer is required to notify the local authority about certain matters, and may be fined for failing to do so. Where the employer receives an order relating to someone whom he does not employ his should, within 14 days, tell the local authority. Likewise he should tell the authority when a debtor for whom a CTAEO is in place leaves his employment, again within 14 days. The employer should also tell the relevant local authority if anyone subject to a CTAEO becomes his employee. This should be done within 14 days of the debtor becoming the employee, or of the date when the employer becomes aware than an order is in force against the employee, whichever is latest. What the debtor must do A debtor must tell the authority which made the CTAEO if he changes employment. In notifying such a change the debtor should give details, in so far as he is able, of his earnings; expected deductions from such earnings in respect of income tax, national insurance and superannuation; the name and address of the employer and his work or identify number. This information must be given with 14 days of the change of employment. Debtors could be subject to a fine if they fail to notify local authority What the authority must do An authority must tell the employer when the whole amount to which a CTAEO relates has been paid, including when the payment was not made by means of a CTAEO. An authority may, on its own account, or on application by the debtor or the debtor’s employer, make an order discharging the CTAEO. Where the CTAEO is discharged the authority should notify the employer.
COUNCIL-TAX-ATTACHMENT-OF-EARNINGS-ORDERS.docx