Regulation 20 Calculation of net earnings of employed earnersI1

England, Wales and Scotland

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

reg. 20(4)(a) words substituted by Housing Benefit and Council Tax Benefit 2005 reg. 3(6)
reg. 20(12) word substituted by Housing Benefit and Council Tax Benefit 2005 reg. 3(6)(a)
reg. 20(12) words omitted by Housing Benefit and Council Tax Benefit 2005 reg. 3(6)(b)
reg. 20(3)(d) words substituted by Social Security (Paternity and Adoption) 2002 reg. 5(6)
reg. 20(3)(a) word omitted by Housing Benefit and Council Tax Benefit 1994 reg. 16(2)(a)
reg. 20(3)(b)-(d) substituted for reg. 20(3)(b) by Housing Benefit and Council Tax Benefit 1994 reg. 16(2)(b)
reg. 20(3A)(3B) inserted by Housing Benefit and Council Tax Benefit 1994 reg. 16(3)
reg. 20(4) words added by Housing Benefit and Council Tax Benefit 1994 reg. 16(4)(a)
reg. 20(4)(a) words omitted by Housing Benefit and Council Tax Benefit 1994 reg. 16(4)(b)
reg. 20(4)(c) substituted by Housing Benefit and Council Tax Benefit 1994 reg. 16(4)(c)
reg. 20(4)(b) substituted by Housing Benefit and Council Tax Benefit 1994 reg. 17

(1)

For the purposes of regulation 14 (average weekly earnings of employed earners), the earnings of a claimant derived or likely to be derived from employment as an employed earner to be taken into account shall, subject to paragraph (2), be his net earnings.

(2)

There shall be disregarded from a claimant’s net earnings, any sum, where applicable, specified in paragraphs 1 to 12 of Schedule 3.

(3)

For the purposes of paragraph (1) net earnings shall, except where paragraph (4) applies, be calculated by taking into account the gross earnings of the claimant from that employment over the assessment period, less—

(a)

any amount deducted from those earnings by way of—

(i)

income tax,

(ii)

primary Class 1 contributions under the Contributions and Benefits Act 1992; and

(b)

one-half of any sum paid by the claimant by way of a contribution towards an occupational or personal pension scheme.

(4)

Where the earnings of a claimant are estimated under paragraph (2) of regulation 14 (average weekly earnings of employed earners), his net earnings shall be calculated by taking into account those earnings over the assessment period, less—

(a)

an amount in respect of income tax equivalent to an amount calculated by applying to those earnings F1the lower rate or, as the case may be, the lower rate and the basic rate of tax in the year of assessment in which the claim was made less only the personal relief to which the claimant is entitled under sections 257(1), (6) and (7) and 259(1)(a) and (2) of the Income and Corporation Taxes Act 1988 (personal relief) as is appropriate to his circumstances but, if the assessment period is less than a year, F2the earnings to which the lower rate and, if appropriate, the basic rate of tax is to be applied and the amount of the personal relief deductible under this sub-paragraph shall be calculated on a prorata basis;

(b)

an amount in respect of primary Class 1 contributions payable under the Contributions and Benefits Act 1992 in respect of those earnings; and

(c)

one-half of any sum payable by the claimant by the way of a contribution towards an occupational or personal pensions scheme.

Annotations

Textual amendments

F1: Words in reg. 20(4)(a) substituted (1.4.1993 immediately after art. 20 of S.I. 1993/349 comes into force) by The Council Tax Benefit (General) Amendment Regulations 1993 (S.I. 1993/688), regs. 1(1), 5(a)
F2: Words in reg. 20(4)(a) inserted (1.4.1993 immediately after art. 20 of S.I. 1993/349 comes into force) by The Council Tax Benefit (General) Amendment Regulations 1993 (S.I. 1993/688), regs. 1(1), 5(b)

Commencement

I1: Reg. 20 in force at 1.4.1993, see reg. 1(b)