SolvedSPM182400 | Paying and Recovering - SSP/SMP/SAP/SPP/ShPP/SPBP/SNCP: deductions
From HM Revenue & Customs · Statutory Payments Manual
SSP/SMP/SAP/SPP/ShPP/SPBP/SNCP 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
superannuation
an overpayment of wages
trade union subscriptions
pension contributions.
Employment Rights Act 1996, 27.
Deductions which cannot be made from Statutory Payments
Deductions such as the following cannot be made from SMP/SAP/SPP/ShPP/SPBP/SNCP:
Attachment of Earnings Orders, including Council Tax Orders
Deductions of Earnings Orders for Child Maintenance and Enforcement Commission (in Scotland, Arrestment of Earnings Orders)
The attachment of Earnings Act 1971, 24,(2)(c)
If in doubt contact IPD Statutory Payments (Technical) Team for advice.