The Income Support (General) Regulations (Northern Ireland) 1987

Deduction of tax and contributions for self-employed earners

39.—(1) The amount to be deducted in respect of income tax under regulation 38(1)(b)(i), (3)(b)(i) or (9)(a)(i) (calculation of net profit of self-employed earners) shall be calculated on the basis of the amount of chargeable income and as if that income were assessable to income tax at the basic rate of tax less only the personal relief to which the claimant is entitled under sections 8(1) and (2) and 14(1)(a) and (2) of the Income and Corporation Taxes Act 1970(1) (personal relief) as is appropriate to his circumstances; but, if the period determined under regulation 30 (calculation of earnings of self-employed earners) is less than a year, the amount of the personal relief deductible under this paragraph shall be calculated on a pro rata basis.

(2) The amount to be deducted in respect of contributions under regulation 38(1)(b)(i), (3)(b)(ii) or (9)(a)(ii) shall be the total of—

(a) the amount of Class 2 contributions payable under section 7(1) or, as the case may be, (4) of the principal Act(2) except where the claimant's chargeable income is less than the amount for the time being specified in section 7(5) of that Act(3) (small earnings exception); and

(b) the amount of Class 4 contributions (if any) which would be payable under section 9 of that Act(4) (Class 4 contributions recoverable under Tax Acts) in respect of profits or gains equal to the amount of that income.

(3) In this regulation “chargeable income” means—

(a) except where sub-paragraph (b) applies, the earnings derived from the employment less any expenses deducted under regulation 38(3)(a) or, as the case may be, 38(4);

(b) in the case of employment as a child minder, one third of the earnings of that employment.

(1)

1970 c. 10; section 8(1) was amended by paragraphs 1 and 5 of Schedule 6 to the Finance Act 1971 (c. 68), section 36 of the Finance Act 1985 (c. 54) and Article 2 of S.I. 1985/430; subsections (1A) and (1B) were added by section 31 of the Finance (No. 2) Act 1975 (c. 45) and amended by section 36 of the Finance Act 1985 and Article 2 of S.I. 1985/430; subsection (1A) was also amended by section 22 of the Finance Act 1977 (c. 36). Section 8(2) was amended by paragraphs 1 and 5 of Schedule 6 to the Finance Act 1971 and Article 2 of S.I. 1985/430; sub-paragraph (b) was substituted by paragraph 1 of Schedule 2 to the Finance (No. 2) Act 1979 (c. 47); sub-paragraph (b)(i) and (ii) was amended by section 139 of, and Part VI of Schedule 19 to, the Finance Act 1981 (c. 35) and section 157 of, and Part IV of Schedule 22 to, the Finance Act 1982 (c. 39); sub-paragraph (b)(iii) was added by section 27 of the Finance Act 1981 and sub-paragraph (b)(iv) was added by section 27 of the Finance Act 1987 (c. 16). Section 14(1) was amended by section 14 of, and Part VI of Schedule 8 to, the Finance Act 1970 (c. 24). Section 14(2) was amended by section 36 of the Finance Act 1976 (c. 40), paragraph 2 of Schedule 1 to the Finance (No. 2) Act 1979 and section 24 of the Finance Act 1980 (c. 48)

(2)

Section 7(1) was amended by Article 3(1) of the Social Security and Family Allowances (Northern Ireland) Order 1976, Article 11 (1) of the Health and Social Security (Northern Ireland) Order 1984 and Article 3(a) of S.R. 1987 No. 26

(3)

Section 7(5) was amended by Article 3(b) of S.R. 1987 No. 26

(4)

Section 9 was amended by Article 6(3) of the Social Security Pensions (Northern Ireland) Order 1975, Article 5(a) of S.R. 1982 No. 413 and Article 5 of S.R. 1987 No. 26