# The Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2013, Paragraph 59: Calculation of deduction of tax and contributions of self-employed earners


(1) The amount to be deducted in respect of income tax under paragraph 58(1)(b)(i), (3)(b)(i) or (9)(a)(i) (calculation of net profit of self-employed earners) must be calculated—
(a) on the basis of the amount of chargeable income, and
(b) as if that income were assessable to income tax at the basic rate of tax applicable to the assessment period less only the personal reliefs to which the applicant is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 ... as is appropriate to the applicant’s circumstances.
(2) But, if the assessment period is less than a year, the earnings to which the basic rate of tax is to be applied and the amount of the personal reliefs deductible under this paragraph must be calculated on a pro rata basis.
(3) The amount to be deducted in respect of social security contributions under paragraph 58 (1)(b)(i), (3)(b)(ii) or (9)(a)(ii) is the total of—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) the amount of Class 4 contributions (if any) which would be payable under section 15 of the SSCBA (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 must be reduced pro rata.
(4) In this paragraph “chargeable income” (“incwm trethadwy”) means—
(a) except where paragraph (b) applies, the earnings derived from the employment less any expenses deducted under sub-paragraph (3)(a) or, as the case may be, (4) of paragraph 58;
(b) in the case of employment as a child minder, one-third of the earnings of that employment.

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Source: https://www.legislation.gov.uk/wsi/2013/3035/schedule/paragraph/59 (the official version)
Page: https://openlegislation.uk/council-tax-reduction-schemes-default-scheme-wales-regulations-2013/schedule/paragraph-59
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.