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PART VE+W+SINCOME AND CAPITAL

Modifications etc. (not altering text)

[F1CHAPTER IVAE+W+SPARTICIPANTS IN THE SELF-EMPLOYMENT ROUTEF2...

Textual Amendments

InterpretationE+W+S

39A.  In this Chapter—

Textual Amendments

Modifications etc. (not altering text)

Treatment of gross receipts of participants in the self-employment routeF4...E+W+S

39B.  The gross receipts of a commercial activity carried on by a person in respect of which assistance is received under the self-employment route, shall be taken into account in accordance with the following provisions of this Chapter.

Textual Amendments

Calculation of income of participants in the self-employment routeF5...E+W+S

39C.—(1) The income of a person who has received assistance under the self-employment route shall be calculated by taking into account the whole of the monies in the special account at the end of the last day upon which such assistance was received and deducting from those monies—

(a)an amount in respect of income tax calculated in accordance with regulation 39D (deduction in respect of tax for participants in the self-employment routeF6...); and

(b)any sum to which paragraph (4) refers.

(2) Income calculated pursuant to paragraph (1) shall be apportioned equally over a period which starts on the date the income is treated as paid under paragraph (3) and is equal in length to the period beginning with the day upon which assistance was first received under the self-employment route and ending on the last day upon which such assistance was received.

(3) Income calculated pursuant to paragraph (1) shall be treated as paid—

(a)in the case where it is due to be paid before the first benefit week in respect of which the participant or his partner first claims income support following the last day upon which assistance was received under the self-employment route, on the day in the week in which it is due to be paid which corresponds to the first day of the benefit week;

(b)in any other case, on the first day of the benefit week in which it is due to be paid.

(4) This paragraph refers, where applicable in each benefit week in respect of which income calculated pursuant to paragraph (1) is taken into account pursuant to paragraphs (2) and (3), to the sums which would have been disregarded under paragraphs 4 to 6B and 9 of Schedule 8 had the income been earnings.

Textual Amendments

Deduction in respect of tax for participants in the self-employment routeF7...E+W+S

39D.—(1) The amount to be deducted in respect of income tax under regulation 39C(1)(a) (calculation of income of participants in the self-employment routeF8...) in respect of the period determined under regulation 39C(2) shall be calculated as if—

(a)the chargeable income is the only income chargeable to tax;

[F9(b)the personal reliefs applicable to the person receiving assistance under the self-employment route under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 are allowable against that income;]

(c)the rate at which the chargeable income less the personal [F10reliefs] is assessable to income tax is F11... the basic rate [F12, or in the case of a Scottish taxpayer, the Scottish basic rate,] of tax.

(2) For the purpose of paragraph (1), the [F13[F14basic] rate] [F15, or the Scottish basic rate,] of tax to be applied and the amount of the [F16personal reliefs] deductible shall, where the period determined under regulation 39C(2) is less than a year, be calculated on a pro rata basis.

(3) In this regulation, “chargeable income" means the monies in the special account at the end of the last day upon which assistance was received under the self-employment route.]

Textual Amendments