Council tax attachment of earnings: how much can be taken from your wages?

How council tax attachment of earnings works

Under the Council Tax (Administration and Enforcement) Regulations 1992, a council with a liability order can make an attachment of earnings order itself. It sends the order to your employer, who must:

• deduct the amount set by the regulations from each payday
• pay it to the council
• give you a note of each deduction

Your employer can usually also deduct £1 per deduction towards its admin costs.

How much can be taken?

The amount isn’t chosen by the council. It’s a percentage of your net earnings, set out in a table in the regulations. The percentage rises as your earnings increase, so people on lower incomes pay a smaller share. “Net earnings” means your pay after Income Tax, National Insurance and pension contributions.

The council can have up to two council tax attachment orders running at the same time (for example, for two different years’ arrears), which can significantly increase the total taken.

Is it better than bailiffs?

Often, yes. An attachment of earnings order:

• avoids bailiff fees of £79, £247 and more
• means no visits to your home
• spreads payments over time

But it can be a problem if the deductions are more than you can afford alongside rent, energy and food. And your employer will know about the debt.

If you can’t afford the deductions

1. Contact the council immediately. Explain your budget and ask whether it will accept a lower voluntary arrangement instead.
2. Check you’re getting all the help available, including Council Tax Reduction and discounts. See Council Tax Reduction.
3. Make sure your current council tax is being paid so new arrears don’t build up.
4. Get debt advice. If you have other debts, a Debt Relief Order or IVA may include your council tax arrears and stop the deductions. Breathing Space can pause enforcement while you get advice.

If you change or lose your job

Tell the council. The order is linked to your employer. If you leave, your employer should tell the council, and the council may send a new order to your next employer or use another method.

Council orders vs court orders

A council tax attachment of earnings order is different from one made by the county court after a county court judgment, where the court works out a “protected earnings rate”. Read attachment of earnings orders after a CCJ.

Frequently asked questions

Can my employer refuse a council tax attachment of earnings order?

No. Employers must comply with the order once they receive it.

Can the council take council tax from my wages without going to court?

It needs a liability order from the magistrates’ court first. After that, it doesn’t need another court hearing to make the attachment.

Will my employer know I owe council tax?

Yes, your employer will receive the order. It must keep the information confidential.

Can council tax be taken from my wages and benefits at the same time?

The council chooses the method. If you’re struggling, ask the council which method is being used and whether it can be changed to something affordable.

Sources

• The Council Tax (Administration and Enforcement) Regulations 1992
• GOV.UK, Council Tax: if you do not pay