Deduction by employer: general
3.—(1) This paragraph applies where an employer of the liable person has received a notice under paragraph 1 relating to the liable person.
(2) On each pay-day the employer must make a deduction from the net earnings which the employer would otherwise pay to the liable person on that pay-day.
(3) Where the earnings are payable weekly, the amount to be deducted is—
(a)the percentage of net earnings specified in Table A below for the band within which the net earnings payable on the pay day in question fall, or
(b)a lower amount calculated in the manner specified in the notice.
Table A
| Net earnings band | Percentage of net earnings |
|---|---|
| Not exceeding £100 | Nil |
| Exceeding £100 but not exceeding £160 | 3 |
| Exceeding £160 but not exceeding £220 | 5 |
| Exceeding £220 but not exceeding £270 | 7 |
| Exceeding £270 but not exceeding £375 | 11 |
| Exceeding £375 but not exceeding £520 | 15 |
| Exceeding £520 | 20 |
(4) Where the earnings are payable monthly, the amount to be deducted is—
(a)the percentage of net earnings specified in Table B below for the band within which the net earnings payable on the pay day in question fall, or
(b)a lower amount calculated in the manner specified in the notice.
Table B
| Net earnings band | Percentage of net earnings |
|---|---|
| Not exceeding £430 | Nil |
| Exceeding £430 but not exceeding £690 | 3 |
| Exceeding £690 but not exceeding £950 | 5 |
| Exceeding £950 but not exceeding £1,160 | 7 |
| Exceeding £1,160 but not exceeding £1,615 | 11 |
| Exceeding £1,615 but not exceeding £2,240 | 15 |
| Exceeding £2,240 | 20 |
(5) Where an amount determined under sub-paragraph (3) or (4) results in a fraction of a penny, that fraction is to be disregarded if it is half a penny or less; otherwise it is to be treated as a penny.
(6) The employer remains subject to the duty under sub-paragraph (2) unless and until—
(a)the employer is notified by the Department that the notice—
(i)has been varied under paragraph 9,
(ii)has been discharged under paragraph 10, or
(iii)has lapsed under paragraph 11, or
(b)the employer considers that, as a result of deductions under this Schedule, the outstanding amount is nil.