Recovering payment usually mean either deductions from wages and benefits or the use of enforcement agents. Bankruptcy and charging orders are other options.
Deduction from wages
We can order your employer to deduct a regular amount from your wages toward your unpaid Council Tax.
If you are unable to make an arrangement to pay your arrears, or do not contact the council, the council may decide to issue an Attachment of Earnings Order for your employer to take money directly from your wages or salary. The Council does take pro-active steps to identify Council Tax debtors employers.
A copy of the order will be sent to you and your employer confirming the Liability Order details and the total debt to be repaid, once the order is in place. Your payroll department will then set up payments to be made to the council on a daily, weekly or monthly basis in accordance with how you are paid, until the debt is settled. Once set up, an attachment will not be cancelled until the debt is paid in full or you cease employment.
The amount of money deducted depends on your net pay.
This is your wages, salary (including any fees, bonus, commission or overtime pay) or any statutory sick pay, after the deduction of income tax, primary Class 1 national insurance contributions, superannuation contributions and any deduction with a higher priority.
The tables below provide an indication of the percentage of your pay that will be deducted. These percentages are non-negotiable as they are set by central government.
The table below shows the amount to be deducted from weekly earnings:
Net earnings | Deduction rate |
---|---|
below £75 | no deduction can be made |
£75 to £135 | 3% |
£135 to £185 | 5% |
£185 to £225 | 7% |
£225 to £355 | 12% |
£355 to £505 | 17% |
above £505 | 17% for the first £505 and 50% for the remainder |
The table below shows the amount to be deducted from monthly earnings.
Net earnings | Deduction rate |
---|---|
below £300 | no deduction can be made |
£300 to £550 | 3% |
£550 to £740 | 5% |
£740 to £900 | 7% |
£900 to £1,420 | 12% |
£1,420 to £2,020 | 17% |
above £2,020 | 17% for the first £2,020 and 50% for the remainder |
Deduction from benefits
We may be able to apply for deductions if you are receiving Jobseeker's Allowance, Employment and Support Allowance, or Income Support.