We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Deduction of earnings

MercMan
MercMan Posts: 460 Forumite
in Debt-free wannabe
Is there an upper limit of how much a council can take from a persons monthly pay? For instance if a person has already a £25 pcm attachment of earnings for a loan can the council take a further £120 pcm for unpaid CT? The person concerned earns £1087.55 before tax and NI deductions.
"What does not kill you makes you stronger"


Comments

  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    I believe it's about 7% on that amount of income so it should be around £65 per month.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The % varies depending on your wages - its set by government so the council have no control over the rate. If you already have a loan coming out direct from your wages then it will be ignored in the calculation unless its court ordered.

    On that wage your net earnings after tax and NI would be about £940, so the deduction would be 12% or about £113 per month.

    Rates are here - http://www.wigan.gov.uk/Services/CouncilDemocracy/CouncilTax/ArrearsRecoveryPolicy.htm
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • MercMan
    MercMan Posts: 460 Forumite
    CIS wrote: »
    The % varies depending on your wages - its set by government so the council have no control over the rate. If you already have a loan coming out direct from your wages then it will be ignored in the calculation unless its court ordered.

    On that wage your net earnings after tax and NI would be about £940, so the deduction would be 12% or about £113 per month.

    Rates are here - http://www.wigan.gov.uk/Services/CouncilDemocracy/CouncilTax/ArrearsRecoveryPolicy.htm


    Yes the existing £25 pcm is a court ordered deduction for a CCJ.
    "What does not kill you makes you stronger"


  • CIS
    CIS Posts: 12,260 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If its a CCJ then it should be taken off along with Tax and NI before the attachment is calculated (IIRC on the priority of attachment orders )- so the attachment would be based on about £915 or £110 p/m.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • MercMan
    MercMan Posts: 460 Forumite
    CIS wrote: »
    If its a CCJ then it should be taken off along with Tax and NI before the attachment is calculated (IIRC on the priority of attachment orders )- so the attachment would be based on about £915 or £110 p/m.


    Yes the £25 is taken off with NI and Tax leaving a take home of £911.
    "What does not kill you makes you stronger"


  • MercMan
    MercMan Posts: 460 Forumite
    More info on this. The council has two Attachment of Earnings against this person. One for £940 and one for £507. How much will they take off his take home pay of £911? His rent is £725 pcm. He does get Housing benefit but has been refused CT benefit.

    He is, as you can understand very worried. He has sent a income and expenditure form to the Council with an offer of payment which they have ignored. Is there anything he can do before the Attachment of Earnings is added by his wages office?
    "What does not kill you makes you stronger"


This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.2K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.3K Spending & Discounts
  • 247.1K Work, Benefits & Business
  • 603.8K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture