Love Payroll - Comprehensive payroll services
In payroll, maintaining accurate and secure records is not only good practice – it’s a legal necessity.
Diligent Custodians Of Your Data
Beyond the standard taxes and pensions, many payrolls involve additional deductions that must be handled with care and legal precision. At Love Payroll Limited, we manage all such deductions on your behalf, ensuring they are calculated correctly and paid over to the relevant third parties on time. One common category is Attachment of Earnings Orders (AEOs) or other court orders. If an employee has a court order for debt repayment, child maintenance (CMS deductions), or a government debt (for example, a Direct Earnings Attachment for benefit overpayments), we will apply the order to their pay as required by law. We calculate the deduction each pay period according to the official formulas and respecting any Protected Earnings limits – meaning we won’t deduct so much that the employee is left with less than the legally protected percentage of their net earnings. (Typically, the protected amount is 60% of net earnings; in other words, we ensure the employee keeps at least 60% of their take-home pay after all orders, per regulations.) We also prioritize multiple orders correctly (applying priority orders first, etc.) and handle the administrative fee that employers are allowed to charge (currently £1 for most AEOs) if you choose to impose it. Most importantly, we remit the deducted funds to the correct authority – for example, sending the payment to the court or the government department – within the deadlines given, so your company stays compliant and the employee’s obligations are fulfilled.
If any of your staff are repaying UK student loans via payroll, we ensure the correct percentage is deducted once they cross the applicable threshold. We stay updated on the different Plan types (Plan 1, Plan 2, Plan 4, or postgraduate loans) and their thresholds – for instance, from April 2025 the Plan 1 threshold is £26,065 and Plan 2 is £28,470 – and we apply the right rate (9% of earnings above the threshold for Plans 1, 2, and 4; 6% for postgraduate loans) each period. We handle any start or stop notices from HMRC’s Student Loans Company, so deductions begin and end exactly when they should. Similar care is given to apprenticeship levy (for larger employers) or other levies if they apply; we calculate and report those as needed. We can also manage deductions like union subscriptions or other voluntary deductions (for example, charitable donations under a payroll giving scheme). If your employees participate in a cycle-to-work scheme or other salary sacrifice arrangements, we adjust their gross pay appropriately and ensure the sacrifice is reflected correctly in deductions and reported pay.
Each category of deduction is clearly listed on the employee’s payslip, so they know how much and why it was taken. For example, a payslip might show “Student Loan Plan 2 – £45.00” or “Court Order – £100.00” and “Admin fee – £1.00”, giving the employee visibility. Love Payroll Limited keeps detailed records of all third-party deductions and can provide schedules or reports to you showing, for each pay period, how much was deducted for each order or loan and when it was paid out. This becomes very useful if, say, a court inquires about a payment or an employee has questions about their remaining balance (while we don’t manage balances of debts, our records can help confirm what’s been paid via payroll). By entrusting us with handling these additional deductions, you can be confident that your business is complying with all legal requirements – avoiding penalties that could come from mishandling an AEO, for example – and that employees’ obligations are being met systematically. We take on the administrative burden and complexity, leaving you with a simple summary and assurance that every deduction is processed correctly and forwarded to the right place.
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