Liability to overdue payments under an income contribution order following reassessment of incomeE+W
22.—(1) This regulation applies where—
(a)a determination has been made by the Director under regulation 12, 13 or 19(3) that the individual is liable to make a payment;
(b)on reassessment in accordance with regulation 18, the Director calculates that the individual’s disposable annual income—
(i)is £3,398 or less; or
(ii)exceeds £3,398 by an amount which is different to that calculated when the determination referred to in sub-paragraph (a) was made; and
(c)the reassessment took place when one or more of the payments under the individual’s income contribution order was overdue.
(2) Where the reassessment took place in accordance with regulation 18(1)(d) and the determination is withdrawn in accordance with regulation 20 as a result of the reassessment, the Director must notify the individual that the individual remains liable to the overdue payment or payments which were required to be made—
(a)before the date on which the determination was withdrawn; or
(b)on or before the date of the conclusion of the proceedings,
whichever is the earlier.
(3) Where the individual’s liability increases or decreases as a result of the reassessment, the Director must notify the individual that the individual is liable to the overdue payment or payments (adjusted under paragraph (4) where relevant) which were required to be made—
(a)before the date on which the determination referred to in paragraph (1)(a) was varied in accordance with regulation 21; or
(b)(where the proceedings have concluded) on or before the date of the conclusion of the proceedings.
(4) Where the individual’s liability to make a payment decreases as a result of the reassessment, the Director must adjust the amount of such payment or payments under paragraph (3) to the amount of the equivalent payment or payments which the individual would have been required to make, had the payments from the relevant date been of one twelfth of 90 per cent of the individual’s disposable annual income as calculated on reassessment;
(5) In this regulation, “the relevant date” means—
(a)where the reassessment took place in accordance with regulation 18(1)(a) to (c), the date on which the determination referred to in paragraph (1)(a) was made by the Director; or
(b)where the reassessment took place in accordance with regulation 18(1)(d)—
(i)if the individual notified the Director of the change in financial circumstances within 28 days of the date of the change, the date of the change in financial circumstances;
(ii)if the individual failed, without reasonable excuse, to notify the Director of the change in financial circumstances within 28 days of the date of the change, the date of the notification of the change in financial circumstances.
Commencement Information
I1Reg. 22 in force at 1.4.2013, see reg. 1