The Criminal Defence Service (Contribution Orders) Regulations 2009

Calculation of income and liability to income contribution order

8.—(1) Except where regulation 7(1) applies, the assessing authority must calculate the gross annual income of the individual and, where the individual has a partner or has children living in the individual’s household, must divide the total according to the scale set out in Schedule 2.

(2) The individual is not liable to make payments under an income contribution order if the gross annual income, as adjusted under paragraph (1), is £12,475 or less.

(3) The assessing authority must notify an individual who is not liable to make payments under an income contribution order under paragraph (2) that the individual is not so liable but may be liable to make payments under a capital contribution order if regulation 19 applies.

(4) Where the gross annual income, as adjusted under paragraph (1), exceeds £12,475, the assessing authority must calculate the individual’s annual disposable income in accordance with paragraph (5).

(5) There are to be deducted from the individual’s gross annual income (without adjustment under paragraph (1))—

(a) any income tax paid or payable in respect of the period of calculation;

(b) any contributions estimated to have been paid under Part 1 of the Social Security Contributions and Benefits Act 1992, in respect of the period of calculation;

(c) any council tax paid or payable in respect of the period of calculation;

(d) either—

(i) any annual rent or annual payment (whether of interest or capital) in respect of a mortgage debt or hereditable security, payable by the individual in respect of the individual’s only or main dwelling, less any housing benefit paid under the Social Security Contributions and Benefits Act 1992; or

(ii) the annual cost of the individual’s living accommodation;

(e) any child care costs paid or payable in respect of the period of calculation;

(f) if the individual is making payments for the maintenance of a former partner or of a child or a relative who is not (in such case) a member of the individual’s household, the amount, where reasonable, of such payments paid or payable in respect of the period of calculation; and in this sub-paragraph “relative” means a parent, grandparent, grandchild, brother, sister, aunt, uncle, nephew, niece or first cousin, whether of the full blood or half blood or by marriage or civil partnership;

(g) an amount representing cost of living expenses in respect of the period of calculation, being either—

(i) £5,676; or

(ii) if the individual has a partner or has children living in the individual’s household, an amount calculated in accordance with the scale set out in Schedule 2;

(h) any income with which the individual is restrained from dealing by order of the High Court or Crown Court;

(i) any amounts due under a contribution order in other proceedings.

(6) The individual is not liable to make payments under an income contribution order if the annual disposable income is £3,398 or less.

(7) The assessing authority must notify an individual who is not liable to make payments under an income contribution order under paragraph (6) that the individual is not so liable but may be liable to make payments under a capital contribution order if regulation 19 applies.

(8) The assessing authority must make an order requiring the individual to make payments under an income contribution order if the individual’s annual disposable income exceeds £3,398.

(9) Where regulation 4(a), (b) or (c) applies, an order under paragraph (8) may not be made until the individual has been committed or sent to the Crown Court, the proceedings have been transferred to the Crown Court or the bill of indictment has been preferred, as the case may be.

(10) Where—

(a) the individual, without reasonable excuse, fails to comply with a request under regulation 5(4) in relation to income, and

(b) the assessing authority has reason to believe that the individual’s disposable income exceeds £3,398,

the assessing authority must make an order requiring the individual to make payments under an income contribution order.

(11) The assessing authority must notify an individual who is liable to make payments under an income contribution order under paragraph (8) or (10) that the individual may also be liable to make payments under a capital contribution order if regulation 19 applies.