The Housing Benefit Regulations (Northern Ireland) 2006

Deduction of tax and contributions of self-employed earners N.I.

36.—(1) The amount to be deducted in respect of income tax under regulation 35(1)(b)(i), (3)(b)(i) or (9)(a)(i) shall be calculated on the basis of the amount of chargeable income and as if that income were assessable to income tax at the [F1 starting rate] or, as the case may be, the [F1 starting rate] and the basic rate of tax applicable to the assessment period less only the personal relief to which the claimant is entitled under section 257(1) of the Taxes Act (personal allowance) as is appropriate to his circumstances; but, if the assessment period is less than a year, the earnings to which the [F1 starting rate] of tax is to be applied and 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 social security contributions under regulation 35(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 11(1) or, as the case may be, 11(3) of the Act at the rate applicable to the assessment period except where the claimant’s chargeable income is less than the amount specified in section 11(4) of the Act (small earnings exception) for the tax year applicable to the assessment period; but if the assessment period is less than a year, the amount specified for that tax year shall be reduced pro rata; and

(b) the amount of Class 4 contributions (if any) which would be payable under section 15 of the Act (Class 4 contributions recoverable under the Income Tax Acts) at the percentage rate applicable to the assessment period on so much of the chargeable income as exceeds the lower limit but does not exceed the upper limit of profits and gains applicable for the tax year applicable to the assessment period; but if the assessment period is less than a year, those limits shall be reduced pro rata.

(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 paragraph (3)(a) or, as the case may be, (4) of regulation 35;

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

Textual Amendments

F1 Words in reg. 36(1) substituted (1.10.2007) by The Social Security (Miscellaneous Amendments No. 5) Regulations (Northern Ireland) 2007 (S.R. 2007/396), regs. 1(1), 9(6)

Commencement Information

I1 Reg. 36 in operation at 20.11.2006, see reg. 1(1)