# The Council Tax Reduction Schemes (Prescribed Requirements) (England) Regulations 2012, Paragraph 30: Calculation of deduction of tax and contributions of self-employed earners

Extent: E+W

(1) The amount to be deducted in respect of income tax under paragraph 29(1)(b)(i), (2)(b)(i) or (8)(a)(i) (calculation of net profit of self-employed earners) is to 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 , or in the case of a Scottish taxpayer, the Scottish 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 are appropriate to his circumstances.
(2) But, if the assessment period is less than a year, the earnings to which the basic rate , or the Scottish 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 national insurance contributions under paragraph 29(1)(b)(i), (2)(b)(ii) or (8)(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” 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, (3) of paragraph 29;
(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/uksi/2012/2885/schedule/1/paragraph/30 (the official version)
Page: https://openlegislation.uk/council-tax-reduction-schemes-prescribed-requirements-england-regulations-2012/schedule-1/paragraph-30
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.