Tax Credits Act 2002 Schedule 3 paragraph 1

Attachment of Earnings Act 1971

Schedule 3 paragraph 1 amends the Attachment of Earnings Act 1971 to ensure that tax credits paid under the Tax Credits Act 2002 cannot be treated as earnings for the purposes of attachment of earnings orders.

• Attachment of earnings orders allow courts to require deductions directly from a person's earnings to satisfy debts or obligations.
• The 1971 Act defines what counts as "earnings" and lists certain sums that are specifically excluded from that definition.
• This amendment adds tax credits (as defined by the Tax Credits Act 2002) to the list of sums that are not to be treated as earnings.
• As a result, tax credits are protected from being seized or deducted under an attachment of earnings order.