The Council Tax Reduction (Scotland) Regulations 2021

CHAPTER 2 S Calculation of weekly income

Calculation of income on a weekly basis (applicants with no award of universal credit) S

38.—(1) This regulation and regulations 39 to [F1 41A] apply where neither the applicant nor the applicant’s partner, nor the partners jointly, have an award of universal credit.

(2) For the purposes of regulation 13(6) or regulation 14(5) (conditions of entitlement to council tax reduction) the income of an applicant is to be calculated on a weekly basis—

(a) by estimating the amount which is likely to be the applicant’s average weekly earned income in accordance with this Chapter F2 ...,

(b) by adding to that amount the average weekly unearned income calculated in accordance with this Chapter and Chapter 4 of this Part,

(c) by deducting any relevant childcare charges calculated in accordance with regulation 77, and

(d) in a case where the conditions in paragraph (3) are met, from that sum plus whichever credit specified in paragraph (3)(b) is appropriate, up to the maximum deduction specified in paragraph (4).

(3) The conditions referred to in paragraph (2)(d) are that—

(a) the applicant’s average weekly earned income is less than the lower of the relevant childcare charges or whichever of the deductions specified in paragraph (2)(c) otherwise applies, and

(b) the applicant, or if the applicant is a member of a couple, either the applicant or the other member of the couple, is in receipt of working tax credit or child tax credit.

(4) The maximum deduction to which paragraph (2)(d) refers is—

(a) where the applicant’s family includes only one child in respect of whom relevant childcare charges are paid, £175.00 per week, and

(b) where the applicant’s family includes more than one child in respect of whom relevant childcare charges are paid, £300.00 per week.

Textual Amendments

F1 Word in reg. 38(1) substituted (31.3.2022) by The Council Tax Reduction (Scotland) Amendment Regulations 2022 (S.S.I. 2022/52), regs. 1(2), 9(a)

F2 Words in reg. 38(2)(a) omitted (31.3.2022) by virtue of The Council Tax Reduction (Scotland) Amendment Regulations 2022 (S.S.I. 2022/52), regs. 1(2), 9(b)

Commencement Information

I1 Reg. 38 in force at 1.4.2022, see reg. 1

Average weekly employed earnings S

39.—(1) For the purpose of regulation 38(2)(a), where an applicant’s income consists of employed earnings, the applicant’s average weekly earnings are to be estimated by reference to the earnings from that employment—

(a) over a period immediately preceding the reduction week in which the application is made or treated as made and being a period of—

(i) 5 weeks, if the applicant is paid weekly, or

(ii) 2 months, if the applicant is paid monthly, or

(b) whether or not sub-paragraph (a)(i) or (ii) applies, where an applicant’s earnings fluctuate, over such other period preceding the reduction week in which the application is made or treated as made as may, in any particular case, enable the applicant’s average weekly earnings to be estimated more accurately.

(2) Where the applicant has been in that employment for less than the period specified in paragraph (1)(a)(i) or (ii)—

(a) in a case where the applicant has received earnings for the period that the applicant has been in that employment and those earnings are likely to represent the average weekly earnings from that employment, the applicant’s average weekly earnings are to be estimated by reference to those earnings,

(b) in any other case, the relevant authority must require the applicant’s employer to furnish an estimate of the applicant’s likely weekly earnings over such period as the relevant authority may require and the applicant’s average weekly earnings are to be estimated by reference to that estimate.

(3) Where the amount of an applicant’s earnings changes during a period of entitlement to council tax reduction, average weekly earnings are to be estimated by reference to the applicant’s likely earnings from the employment over a period that is appropriate to allow the average weekly earnings to be estimated accurately but the length of the period is not in any case to exceed 52 weeks.

(4) For the purposes of this regulation the applicant’s employed earnings are to be calculated in accordance with Chapter 3 of this Part.

Commencement Information

I2 Reg. 39 in force at 1.4.2022, see reg. 1

Average weekly earnings of self-employed earners S

40.—(1) For the purpose of regulation 38(2)(a), where an applicant’s income consists of self-employed earnings the applicant’s average weekly earnings are to be estimated by reference to the earnings from that employment over such period as is appropriate in order that the applicant’s average weekly earnings may be estimated accurately but the length of the period is not in any case to exceed 52 weeks.

(2) For the purposes of this regulation the applicant’s self-employed earnings are to be calculated in accordance with Chapter 3 of this Part.

Commencement Information

I3 Reg. 40 in force at 1.4.2022, see reg. 1

Average weekly unearned income S

41.—(1) For the purpose of regulation 38(2)(b), an applicant’s unearned income must, except where paragraph (2) applies, be estimated over a period that is appropriate to allow the applicant’s average weekly income to be estimated accurately but the length of the period is not in any case to exceed 52 weeks F3 ....

(2) The period over which any benefit under the benefit Acts is to be taken into account is the period in respect of which that benefit is payable.

(3) For the purposes of this regulation unearned income is to be calculated in accordance with Chapter 4 of this Part.

Textual Amendments

F3 Words in reg. 41(1) omitted (1.4.2023) by virtue of The Council Tax Reduction and Council Tax (Discounts) (Miscellaneous Amendment) (Scotland) Regulations 2023 (S.S.I. 2023/38), regs. 1, 9

Commencement Information

I4 Reg. 41 in force at 1.4.2022, see reg. 1

[F4 Calculation of average weekly income from tax credits S

41A.— (1) This regulation applies where an applicant receives a child tax credit or a working tax credit.

(2) The period over which that tax credit is to be taken into account, for the purposes of estimating an applicant’s average weekly unearned income in accordance with regulation 41 (average weekly unearned income), is set out in paragraph (3).

(3) Where the instalment in respect of which payment of that tax credit is made is—

(a) a daily instalment, the period is one day, being the day in respect of which the instalment is paid,

(b) a weekly instalment, the period is 7 days, ending on the day on which the instalment is due to be paid,

(c) a 2 weekly instalment, the period is 14 days, commencing 6 days before the day on which the instalment is due to be paid, or

(d) a 4 weekly instalment, the period is 28 days, ending on the day on which the instalment is due to be paid.]

Textual Amendments

F4 Reg. 41A inserted (31.3.2022) by The Council Tax Reduction (Scotland) Amendment Regulations 2022 (S.S.I. 2022/52), regs. 1(2), 10

Commencement Information

I5 Reg. 41A in force at 1.4.2022, see reg. 1

Calculation of income on a weekly basis (applicants with an award of universal credit) S

42.—(1) This regulation and regulation 43 apply where the applicant or the applicant’s partner has, or the partners jointly have, an award of universal credit.

(2) For the purposes of regulation 13(6) or regulation 14(5) (conditions of entitlement to council tax reduction) the income of an applicant is to be calculated on a weekly basis—

(a) by estimating the amount which is likely to be the applicant’s average weekly earned income in accordance with this [F5 Part] F6 ...,

(b) by adding to that amount the weekly unearned income calculated in accordance with this Chapter and Chapter 4 of this Part, and

(c) by then deducting any relevant childcare charges calculated in accordance with regulation 78(3), or in a case where the conditions in paragraph (3) are met, from that sum plus whichever credit specified in paragraph (3)(b) is appropriate, up to a maximum deduction.

(3) The conditions referred to in paragraph (2)(c) are that—

(a) the applicant’s average weekly earned income is less than the lower of the relevant child care charges or whichever of the deductions specified in paragraph (b) otherwise applies, and

(b) the applicant or, if the applicant is a member of a couple, either the applicant or the other member of the couple, is in receipt of working tax credit or child tax credit.

(4) The maximum deduction to which paragraph (2)(c) refers is—

(a) where the applicant’s family includes only one child in respect of whom relevant childcare charges are paid, [F7 £275.00] per week, and

(b) where the applicant’s family includes more than one child in respect of whom relevant childcare charges are paid, [F8 £471.00] per week.

Textual Amendments

F5 Word in reg. 42(2)(a) substituted (1.4.2023) by The Council Tax Reduction and Council Tax (Discounts) (Miscellaneous Amendment) (Scotland) Regulations 2023 (S.S.I. 2023/38), regs. 1, 10

F6 Words in reg. 42(2)(a) omitted (31.3.2022) by virtue of The Council Tax Reduction (Scotland) Amendment Regulations 2022 (S.S.I. 2022/52), regs. 1(2), 11

F7 Sum in Reg. 42(4)(a) substituted (1.4.2024) by The Council Tax Reduction (Scotland) Amendment Regulations 2024 (S.S.I. 2024/35), regs. 1, 14(a)

F8 Sum in Reg. 42(4)(b) substituted (1.4.2024) by The Council Tax Reduction (Scotland) Amendment Regulations 2024 (S.S.I. 2024/35), regs. 1, 14(b)

Commencement Information

I6 Reg. 42 in force at 1.4.2022, see reg. 1

Calculation of average weekly income S

43.—(1) For the purpose of regulation 42(2)(a) an applicant’s average weekly earned income is calculated by—

(a) multiplying the applicant’s earned income for an assessment period by 12, and

(b) dividing the product by 52.

(2) For the purpose of regulation 42(2)(b) an applicant’s average weekly unearned income is calculated by—

(a) multiplying the applicant’s unearned income for an assessment period by 12, and

(b) dividing the product by 52.

Commencement Information

I7 Reg. 43 in force at 1.4.2022, see reg. 1

Meaning of “assessment period” S

44.—(1) Where an applicant or the applicant’s partner has, or the partners jointly have, an award of universal credit—

(a) an “assessment period” means the assessment period based on which the monthly award of universal credit is calculated in accordance with regulation 21 of the 2013 Regulations(1), and

(b) an applicant’s average total weekly income is calculated in accordance with regulation 43.

(2) Where neither the applicant nor the applicant’s partner, nor the partners jointly, have an award of universal credit, an “assessment period” is a period described in regulations 39 (average weekly employed earnings), 40 (average weekly self-employed earnings) [F9 , 41 (average weekly unearned income) and 41A (calculation of average weekly income from tax credits)] over which income falls to be calculated.

Textual Amendments

F9 Words in reg. 44(2) substituted (1.4.2023) by The Council Tax Reduction and Council Tax (Discounts) (Miscellaneous Amendment) (Scotland) Regulations 2023 (S.S.I. 2023/38), regs. 1, 11

Commencement Information

I8 Reg. 44 in force at 1.4.2022, see reg. 1

(1)

Regulation 21 was amended by S.I. 2014/2887 and S.I. 2018/65.