The Carer’s Assistance (Carer Support Payment) (Scotland) Regulations 2023

Notional earnings

3.—(1) Where an individual’s earnings are not ascertainable at the date on which the Scottish Ministers are determining the individual’s entitlement to Carer Support Payment or considering whether they are required to make a determination of the individual’s entitlement to Carer Support Payment without receiving an application, the individual is treated as possessing such earnings as is reasonable in the circumstances having regard to the number of hours worked and the earnings paid for comparable employment.

(2) Where an individual is treated as possessing any earnings under sub-paragraph (1), this schedule applies for the purposes of calculating the amount of those earnings as if a payment had actually been made and as if they were actual earnings which that individual does possess, except that paragraph 9(3) (calculation of net earnings of employed earners) does not apply and their net earnings are calculated by taking into account the earnings which they are treated as possessing, less—

(a) an amount in respect of income tax equivalent to an amount calculated by applying to those earnings the basic rate, or in the case of a Scottish taxpayer, the Scottish basic rate, of tax in the year of assessment less only the personal reliefs to which the individual is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 as are appropriate to their circumstances; but if the period over which those earnings are to be taken into account is less than a year, the earnings to which the basic rate, or Scottish basic rate, of tax is to be applied and the amount of the personal reliefs deductible under this paragraph are calculated on a pro rata basis,

(b) where the weekly amount of those earnings equals or exceeds the lower earnings limit, an amount representing primary Class 1 contributions under the 1992 Act, calculated by applying to those earnings the initial and main primary percentages in accordance with section 8(1)(a) and (b) of that Act, and

(c) one half of any sum payable by the individual in respect of a pay period by way of a contribution towards an occupational or personal pension scheme,

(d) any care charges to which paragraph 15 (care charges to be deducted in the calculation of earnings) applies up to a maximum deduction, in respect of such care charges incurred by any individual, of 50% of their notional earnings.