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At the end of December, the following item appeared in News Online, published weekly by the Institute of Payroll Professionals (IPP) to its members.

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Last week’s newsletter reviewed the new calculation procedures that apply to Scottish current maintenance arrestments (CMAs) and earnings arrestments (EAs) from 6 April 2010. In that article we indicated that employers should not apply the new calculations until instructed to do so by a debtor or creditor, but that the new calculations must be applied to new arrestments executed on or after 6 April 2010.

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The Scottish courts raise current maintenance arrestments (CMAs) to enforce the payment of maintenance, and earnings arrestments (AEs) to recover civil debts, fines and unpaid Council Tax.  If two or more concurrent arrestments are raised for the same person, they are combined into a single conjoined arrestment order (CAO). These court orders are applied by Scottish employers, but also by many employers throughout the UK, in respect of Scottish residents.

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Figures issued by the Child Maintenance and Enforcement Commission (CMEC) show that, by the end of September 2009, over 797,000 children were benefiting from child maintenance.  It is now a year since CMEC took over responsibility for the Child Support Agency.  The latest figures also show that
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Court Orders - Changes to Scottish Debt Arrangement Schemes

The Debt Arrangement Scheme (DAS) was introduced by the Scottish Parliament in November 2004 to provide a means for debtors to repay their debts in full over a period of time without the threat of legal action or diligence (e.g. the use of earnings arrestments, the Scottish equivalent of attachment of earnings orders). The scheme allows debtors to make a single regular payment, by credit card, direct debit, standing order, or by payroll deduction. If the payments are to be made by deduction from wages, employers are obliged to make the deductions if they are served by the employee with a Payment Mandate.

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Scottish Earnings Arrestments - Calculation changes from 6 April 2009

Following representations from the Institute of Payroll Professionals (IPP), the Business Application Software Developers Association (BASDA) and the British Computer Society (BSC), the Scottish Parliament has decided to delay changes to the rules for calculating Scottish arrestments from 6 April 2009.

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Scottish Earnings Arrestments - Calculation changes from 6 April 2009

In last week’s newsletter we reported the changes that had been passed by the Scottish Parliament to the calculation procedures for Earnings Arrestments and Current Maintenance Arrestments. Insufficient notice was given for an implementation date of 6 April 2009.

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Scottish Earnings Arrestments - Calculation changes from 6 April 2009

The Scottish Parliament has approved Regulations that introduce new calculation procedures for Scottish Earnings Arrestments and Current Maintenance Arrestments from 6 April 2009.

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In mid-November, HMRC wrote to all of the payroll system developers, inviting them to comment on a letter from the Child Support Agency (CSA). The letter was a short-term consultation on proposals to reduce the period of time allowed for employers to pay over monies collected under Deduction of Earnings Orders (DEOs).

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In a Written Ministerial Statement on 15 September 2008, the Parliamentary Under-Secretary of State for Work and Pensions announced that the Child Maintenance and Enforcement Commission (CMEC) is to pilot the use of Deduction from Earnings Orders (DEOs) as the primary method of collection for employed non-resident parents.  Compliance rates for DEOs are second only to those for direct debits.  The following is an extract from the statement:

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