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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Enforcement action: county court proceedings: attachment of earnings orders (AEOs): consolidated AEOs

Applying for a consolidated AEO

Any of the parties involved, whether the judgment debtor, the employer or a creditor, may apply for a consolidated order at any time when there are two or more non-priority orders in force.

The court may also make a consolidated order of its own volition.

Application by defendant

Where an application for a consolidated order is made, a court officer will notify all parties of the terms of the application. Any party who objects to the application must send their reasons for any objection to the court in writing within 14 days of the date of service.

If no objection is received, the court officer will make a consolidated order.

If any party objects to the making of a consolidated order the court officer will refer the matter to the district judge who will give appropriate directions.

Application by the claimant

Where you apply for an AEO and there is already an order in force, the court may occasionally suggest that you apply for a consolidated order. Alternatively you may consider that this course of action would be advantageous, for example, where

  • HMRC already has an AEO (whether or not there are other creditors) and has a further court judgment, or
  • an AEO already exists to which HMRC is not a party, and the debtor has insufficient income to sustain a further, separate AEO.

However you should be aware that a fee of 10p for every £1, or part of £1, of money paid into court, will be deducted (and retained) by the court before it is paid out to the creditors.

Application for a consolidated order should be made on form N66A under cover of a letter to the court manager showing the balance due at the date of application.

Operating Consolidated Orders

Under a consolidated order, the employer has to make just one deduction each pay day. The money collected will be allocated to each creditor in proportion to the amount of each debt and be paid out periodically by the court. Where you have two or more debts included in the consolidated order you must allocate the payments in accordance with the court’s instructions.