A deduction from earnings order may not require an amount to be deducted from the liable person’s earnings before the end of the period of 22 days beginning with the day on which the order is given to the employer.

(4)

An employer must comply with a deduction from earnings order.

41Requirements before making a deduction from earnings order

(1)

Before making a deduction from earnings order in respect of a liable person, the Minister must give the liable person a notice inviting them to make representations about the proposed order.

(2)

The notice must include—

(a)

the terms of the proposed order,

(b)

a statement of the amount that is recoverable, and

(c)

the means by which, and the period within which, representations may be made.

(3)

The period must be at least 28 days beginning with the day after the day on which the notice is given.

(4)

The Minister must—

(a)

consider any representations received in accordance with the notice, and

(b)

in light of those representations—

(i)

decide whether to make a deduction from earnings order in respect of the liable person, and

(ii)

make any changes to the terms of the proposed order that the Minister considers appropriate.

(5)

The Minister must give a copy of a notice under subsection (1) to the liable person’s employer.

(6)

If, following the giving of a notice under subsection (1), the Minister decides not to make the proposed deduction from earnings order, the Minister must, as soon as reasonably practicable—

(a)

give the liable person a notice to that effect, and

(b)

give a copy of the notice to the liable person’s employer.

42Amount of deductions

(1)

The Minister may make a deduction from earnings order only if satisfied that the terms of the order—

(a)

will not cause the liable person or a person within subsection (2) to suffer hardship in meeting ordinary living expenses, and

(b)

are otherwise fair in all the circumstances.

(2)

A person is within this subsection if—

(a)

they live with the liable person for some or all of the time, or

(b)

they are financially dependent on the liable person.

(3)

The amount to be deducted in relation to an affected period must not exceed—

(a)

in a case to which subsection (4) applies, 40% of the liable person’s net earnings for the affected period, and

(b)

in any other case, 20% of the liable person’s net earnings for the affected period.

(4)

This subsection applies in a case where the Minister is satisfied, on the balance of probabilities, that the payable amount to which the deduction from earnings order relates is recoverable from the liable person because the liable person committed fraud.

(5)

The Minister must ensure that the total amount to be deducted and paid to the Minister under a deduction from earnings order does not exceed the payable amount to which the order relates.

(6)

The Minister may by regulations make further provision about the calculation of amounts to be deducted from a liable person’s earnings and paid to the Minister in accordance with a deduction from earnings order.

(7)

The regulations may, among other things, make provision about establishing whether deductions would cause a person to suffer hardship in meeting ordinary living expenses.

(8)

Regulations under this section are subject to the negative procedure.

(9)

In this section, “net earnings” means the person’s earnings after the following have been deducted—

(a)

income tax,

(b)

primary Class 1 national insurance contributions, and

(c)

any contribution that the person pays to a pension scheme.

43The employer’s administrative costs

(1)

A deduction from earnings order may include provision for the employer to which it is given to deduct from the liable person’s earnings an amount specified in, or calculated in accordance with, the order, for the purpose of meeting costs reasonably incurred by the employer in complying with the order.

(2)

In complying with section 42(1) and (3) in relation to a deduction from earnings order the Minister must take account of any deductions to be made under the order by virtue of subsection (1).

(3)

The Minister may by regulations make provision about costs to which subsection (1) relates.

(4)

Regulations under this section are subject to the negative procedure.

44Suspension of deduction from earnings orders

(1)

The Minister may suspend and re-start the requirement to make deductions and payments under a deduction from earnings order at any time by notifying the employer to which the order was given.

(2)

The Minister must notify the liable person if the requirement is suspended or re-started under this section.

(3)

Where the requirement is suspended for a continuous period of 2 years the deduction from earnings order in question is to be treated as having been revoked at the end of that period.

(4)

Where a deduction from earnings order is treated as having been revoked by virtue of subsection (3), the Minister must give notice to that effect to—

(a)

the liable person, and

(b)

the employer to which the order was given.

(5)

Subsection (3) does not prevent the Minister making a further deduction from earnings order in respect of the same liable person.

45Duty to notify the Minister of change of circumstances

(1)

A liable person in respect of whom a deduction from earnings order is in force, must notify the Minister on each occasion that they—

(a)

leave any employment, or

(b)

start a new employment,

within the period of 7 days beginning with the day after the day on which they leave or start the employment.

(2)

If the liable person notifies the Minister that they have started a new employment, they must include a statement of their expected earnings from their new employment.

(3)

A person who—

(a)

becomes the employer of a liable person, and

(b)

knows that a deduction from earnings order is in force in respect of the liable person,

must, within 10 days of the beginning of the liable person’s employment, notify the Minister that they have become the liable person’s employer and include a statement of the liable person’s expected earnings from the employment.

(4)

A person must notify the Minister if a liable person in respect of whom a deduction from earnings order is in force ceases to be in their employment.

(5)

The notification must be given within the period of 10 days beginning with the day after the day on which the liable person leaves the employment.

46Applications to vary

(1)

A liable person may apply to the Minister to vary a deduction from earnings order.

(2)

The Minister must notify the liable person of the Minister’s decision on the application.

47Variation

(1)

The Minister may vary a deduction from earnings order given to an employer (whether on an application by the liable person or otherwise) by—

(a)

giving a revised version of the order to the employer, and

(b)

giving a copy of the revised version to the liable person.

(2)

Where the Minister proposes to vary a deduction from earnings order, the Minister must give the liable person an opportunity to make representations about the proposed variation.

48Revocation

(1)

The Minister may revoke a deduction from earnings order.

(2)

The Minister must revoke a deduction from earnings order if the payable amount to which it relates has been recovered.

(3)

Where the Minister revokes a deduction from earnings order, the Minister must give notice of the revocation to—

(a)

the employer, and

(b)

the liable person.

49Reviews

(1)

This section applies where the Minister—

(a)

makes a deduction from earnings order,

(b)

varies a deduction from earnings order, or

(c)

decides not to vary a deduction from earnings order in response to an application under section 46.

(2)

A liable person may apply to the Minister for a review of the decision to make, to vary or not to vary the order.

(3)

An application under subsection (2) must be made within the period of 28 days beginning with the day after the day on which the liable person was—

(a)

given a copy of the order or the order as varied, or

(b)

notified of the decision not to vary the order.

(4)

An application for a review under subsection (1) may not be brought on, or include, any ground relating to the existence or amount of a payable amount (unless the amount is said to be incorrectly stated in the order).

(5)

Where an application is made under this section, the Minister must review the decision in question.

(6)

On a review, the Minister may—

(a)

uphold the decision,

(b)

vary the order, or

(c)

revoke the order.

(7)

After a review has been carried out, the Minister must—

(a)

notify the liable person of the outcome of the review, and

(b)

if the outcome was to vary the order, give—

(i)

the varied order to the liable person’s employer, and

(ii)

a copy of the varied order to the liable person.

50Appeals

(1)

A liable person may appeal to the First-tier Tribunal against—

(a)

the making of a deduction from earnings order,

(b)

the variation of a deduction from earnings order, or

(c)

a refusal to vary a deduction from earnings order after an application under section 46.

(2)

The liable person may not appeal under subsection (1) unless they have—

(a)

applied for a review of the decision to make, to vary or not to vary the order under section 49, and

(b)

been notified of the outcome of the review.

(3)

Subsection (2) does not apply where a deduction from earnings order is varied on a review under section 49.

(4)

An appeal may not be brought after the end of—

(a)

the period of 28 days beginning with the day after the day on which the liable person was notified of the outcome of the review, or

(b)

such longer period (if any) as the Tribunal considers reasonable in all the circumstances.

(5)

An appeal under subsection (1) may not be brought on, or include, any ground relating to the existence or amount of a payable amount (unless the amount is said to be incorrectly stated in the order).

(6)

On an appeal under this section, the First-tier Tribunal may suspend the requirement on an employer to comply with a deduction from earnings order for some or all of the time until the appeal is finally determined.

(7)

On an appeal under subsection (1), the First-tier Tribunal may—

(a)

amend the deduction from earnings order,

(b)

revoke the deduction from earnings order, or

(c)

dismiss the appeal.