The document you have received is a legal document and it is in a prescribed format that we are unable to change.
This page will explain the process and the legal information around the attachments.
We will provide as much information as we hold for your employees. This is usually their full name and address, but may also include their National Insurance Number and Date of Birth. We will also provide details of the debt that they owe and the number of deductions to be made (this will be 1 or 2).
You will need to calculate the amount to be deducted, based on the information below, and arrange for this to be taken out of your employees earnings and paid to the bank account detailed on the letter we have sent you.
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, using the contact details supplied on the letter we have sent you. After this you no longer need to do anything.
Deductions should begin as soon as possible after the order has been received. We must receive the deducted amounts by the 25 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 your administration costs. A statement of the total amount deducted (including the £1 administrative costs) should be given to your employee.
'Earnings' refers to:
Earnings do not include:
The amount to be deducted depends on the total net earnings received by the employee. The first deduction is the percentage of their net wage. The second deduction is the percentage of their remaining net wage after the first deduction has been taken. Please use the table below to calculate the deduction amounts:
|Daily Earnings after tax||Weekly Earning after tax||Monthly Earnings after tax||Percentage of earnings taken|
|Up to £11||Up to £75||Up to £300||0%|
|£11 to £20||£75 to £135||£300 to £550||3%|
|£20 to £27||£135 to £185||£550 to £740||5%|
|£27 to £33||£185 to £225||£740 to £900||7%|
|£33 to £52||£225 to £355||£900 to £1420||12%|
|£52 to £72||£355 to £505||£1,420 to £2,020||17%|
|Over £72||Over £505||Over £2,020||17 - 50%*|
* We'll take 17% of the first:
Then we'll take 50% of any money earned over these amounts for that day, week or month.
Mr A is 30 years old and works 40 hours per week for national minimum wage. His monthly take-home pay is £1,262.49. We have requested 2 attachments to his earnings:
Total monthly deduction to be taken = £284.82.
Mr B is 38 and works 37 hours per week at £11.00 per hour. He pays 5% towards his pension. His monthly take-home pays is £1,423.55. We have requested 2 attachments to his earnings:
Total monthly deduction to be taken = £383.71
Mrs C is 50 and earns £25,000.00 per year. Her monthly take-home pay is £1,711.47. We have requested 2 attachments to her earnings:
Total monthly deduction to be taken = £532.44
Miss D is 45 and earns £2,900.00 per month or £34,800 per year. She takes home £2,266.80 monthly. We have requested 1 attachment to her earnings:
Total monthly deduction to be taken = £466.80
If you need any additional information, or help with arranging the deduction, please email us at email@example.com.