Deduction Orders

Where can I enter a deduction order for my employee on Shape?

Within the employee profile in Shape is a tab named "Deduction Orders", this is where to input any deduction order instructions you have received for an individual.

Once set up, the deduction order will continue to be deducted unless you instruct Shape payroll to end the deduction order by way of an end date (of course, only advisable if you have been instructed to do so by the governing body in writing) or if a total amount due has been exhausted.

What are the deduction order options within Shape?

What are the deduction order calculations in Shape?

Deduction from Earnings Order (DEO)

This is where you would enter Child Maintenance deduction orders which are not calculated on a percentage basis but use the period amounts given, alongside protected earnings, within the deduction order letter.

You can also use the DEO field to deduct a fixed amount for other deduction orders when instructed to.

Civil judgment debt Attachment of Earnings Order (AEO)

This is where you would enter court orders which are not calculated on a percentage basis but use the period amounts given, alongside protected earnings and total amount owed, within the court order letter.

Council Tax Attachment of Earnings Order (CTAEO) - England

Table 1 - Deductions from weekly earnings

Net earnings	Deduction rate (percentage)
Not exceeding £75.00	Nil
Exceeding £75.00 but not exceeding £135.00	3
Exceeding £135.00 but not exceeding £185.00	5
Exceeding £185.00 but not exceeding £225.00	7
Exceeding £225.00 but not exceeding £355.00	12
Exceeding £355.00 but not exceeding £505.00	17
Exceeding £505.00	17 in respect of the first £505.00 and 50% in respect of the remainder

Table 2 - Deductions from monthly earnings

Net earnings	Deduction rate (percentage)
Not exceeding £300.00	Nil
Exceeding £300.00 but not exceeding £550.00	3
Exceeding £550.00 but not exceeding £740.00	5
Exceeding £740.00 but not exceeding £900.00	7
Exceeding £900.00 but not exceeding £1420.00	12
Exceeding £1420.00 but not exceeding £2020.00	17
Exceeding £2020.00	17 in respect of the first £2020.00 and 50% in respect of the remainder

Council Tax Attachment of Earnings Order (CTAEO) - Wales

Weekly Table

Net Earnings (Welsh Orders) from 01 April 2022	Deduction Rate (%)
Not Exceeding £105	0
Exceeding £105 but not exceeding £190	3
Exceeding £190 but not exceeding £260	5
Exceeding £260 but not exceeding £320	7
Exceeding £320 but not exceeding £505	12
Exceeding £505 but not exceeding £715	17
Exceeding £715	17 on first £715 and 50 on net earnings over

Monthly Table

Net Earnings (Welsh Orders) from 01 April 2022	Deduction Rate (%)
Not Exceeding £430	0
Exceeding £430 but not exceeding £780	3
Exceeding £780 but not exceeding £1,050	5
Exceeding £1,050 but not exceeding £1,280	7
Exceeding £1,280 but not exceeding £2,010	12
Exceeding £2,010 but not exceeding £2,860	17
Exceeding £2,860	17 on first £2,860 and 50 on net earnings over

Magistrates Court Attachment of Earnings Order (MCAEO)

Table A - Deductions from weekly earnings

Net Earnings	Deduction Rate %
Not exceeding £55.00	Nil
Exceeding £55.00 but not exceeding £100.00	3
Exceeding £100.00 but not exceeding £135.00	5
Exceeding £135.00 but not exceeding £165.00	7
Exceeding £165.00 but not exceeding £260.00	12
Exceeding £260.00 but not exceeding £370.00	17
Exceeding £370.00	17 in respect of the first £370.00 and 50% in respect of the remainder

Table B - Deductions from monthly earnings

Net Earnings	Deduction Rate %
Not exceeding £220.00	Nil
Exceeding £220.00 but not exceeding £400.00	3
Exceeding £400.00 but not exceeding £540.00	5
Exceeding £540.00 but not exceeding £660.00	7
Exceeding £660.00 but not exceeding £1040.00	12
Exceeding £1040.00 but not exceeding £1480.00	17
Exceeding £1480.00	17 in respect of the first £1480.00 and 50% in respect of the remainder

Direct Earnings Attachment (DEA) - Standard Rate

Table A: Deductions from earnings rate (standard)

Weekly Earnings	Monthly Earnings	Deduction rate to apply (percentage of net earnings)
Up to £100	Up to £430	Nil
Between £100.01 and £160	Between £430.01 and £690	3
Between £160.01 and £220	Between £690.01 and £950	5
Between £220.01 and £270	Between £950.01 and 1160	7
Between £270.01 and £375	Between £1160.01 and £1615	11
Between £375.01 and £520	Between £1615.01 and £2240	15
£520.01 or more	£2240.01 or more	20

Note: Net earnings are gross pay, less income tax, Class 1 National Insurance and superannuation contributions as per HMRC guidelines

Direct Earnings Attachment (DEA) - Higher Rate

Table B: Deductions from earnings rate (higher)

Weekly Earnings	Monthly Earnings	Deduction rate to apply (percentage of net earnings)
Up to £100	Up to £430	5
Between £100.01 and £160	Between £430.01 and £690	6
Between £160.01 and £220	Between £690.01 and £950	10
Between £220.01 and £270	Between £950.01 and 1160	14
Between £270.01 and £375	Between £1160.01 and £1615	22
Between £375.01 and £520	Between £1615.01 and £2240	30
£520.01 or more	£2240.01 or more	40

Earnings Arrestment (EA) - Scotland