Paying and Recovering - SMP/SAP/SPP/ASPP/ShPP: deductions
SMP/SAP/SPP/ShPP are a replacement of earnings, not a benefit, so any deductions which the employer would normally lawfully make from wages can also be made from these. This includes:
- tax and NICs
- an overpayment of wages
- trade union subscriptions
- pension contributions.
Deductions which cannot be made from Statutory Payments
Deductions such as the following cannot be made from SMP/SAP/SPP/ShPP:
- Attachment of Earnings Orders, including Council Tax Orders
- Deductions of Earnings Orders for Child Maintenance and Enforcement Commission (in Scotland, Arrestment of Earnings Orders)
If in doubt contact PT CPP Statutory Payments (Technical) Team for advice.