Regulation 65 Calculation of administration fee
The scheme administrator must, for each assessment year—
determine its chargeable administration costs, in accordance with paragraph (2); and
calculate the amount of the administration fee payable by each liable producer, in accordance with paragraph (3).
For the purposes of paragraph (1)(a), “chargeable administration costs” means the amount which the scheme administrator considers will enable it—
to meet the expenses, other than public information disposal costs, that it expects to incur in that assessment year in carrying out its functions or for any incidental purposes;
to pay any interest on relevant borrowing, and to repay the principal of any relevant borrowing which is repayable during the assessment year; and
to meet relevant commencement expenses.
The administration fee payable by each liable producer must be calculated as—
where—
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“F” is the liable producer’s share of chargeable administration costs, which is to be calculated by dividing the amount determined by the scheme administrator under paragraph (1)(a) between all liable producers in the same proportions as disposal fees are divided between liable producers for that assessment year; and
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“G” is the provision for impairments calculated for the liable producer under regulation 66(4)(b).
In paragraph (2)—
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“relevant borrowing” means any money borrowed by the scheme administrator which has been used for the purpose of meeting expenses incurred in relation to its assumption or exercise of functions under these Regulations;
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“relevant commencement expenses” means expenses incurred by the scheme administrator in preparation for the exercise of its functions under these Regulations.