Payroll: Net pay for CTAOE?

mge Registered Posts: 94 Regular contributor ⭐
Any help would be very much appreciated on calculating net pay with respect to Council Tax Attachments of Earnings.

As far as I can see:
Earnings are gross pay including SSP, but not SMP, SPP or SAP.
Deductions are tax and NIC, but I'm uncertain whether pension is also included.

Any help is much appreciated.


  • Henry
    Henry Registered Posts: 56 Regular contributor ⭐
    I think it depends on whether it is a salary sacrifice scheme or a contracted out scheme. In a salary sacrifice scheme the pension amount is taken off the gross amount before tax and n.i. etc is applied. In a contracted out scheme the pension amount is subject to both tax and N.I. So in contracted out scheme the pension deduction is taken through the payroll calculation but in the salary sacrifice scheme it is taken out before the payroll calculation. Hope this helps!
  • mge
    mge Registered Posts: 94 Regular contributor ⭐
    Thanks for your reply Henry.

    The question I am looking at concerns a contracted out pension scheme. I have seen the model answer, in which pension is not deducted in the calculation of net pay for a CTAOE.

    However, having googled CTAOE, deductions seem to be "income tax, primary class 1 national insurance contributions, superannuation contributions and any deduction with a higher priority".

    What I am uncertain about is the term "superannuation contributions", I thought that this simply meant pension contributions, in which case this would contradict the model answer for the question.
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