Regulation 84 Deduction of tax and contributions for self-employed earners

Subject to paragraph (2), the amount to be deducted in respect of income tax under regulation 83(1)(b)(i), (2)(b)(i) or (8)(a)(i) (calculation of net profit of self-employed earners) is to be calculated on the basis of the amount of chargeable income and as if that income were assessable to income tax at the basic rate F1, or in the case of a Scottish taxpayer, the Scottish basic rate, of tax less only the F2personal reliefs to which the claimant is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 as are appropriate to the claimant's circumstances.

If the period determined under regulation 77 is less than a year, the earnings to which the basic rate F3, or the Scottish basic rate, of tax is to be applied and the amount of the personal reliefs deductible under paragraph (1) are to be calculated on a pro rata basis.

The amount to be deducted in respect of National Insurance contributions under regulation 83(1)(b)(i), (2)(b)(ii) or (8)(a)(ii) is to be the total of—

In this regulation—

• “assessment period” means the period mentioned in regulation 77 over which the weekly amount of the claimant's earnings is to be determined;

• “basic rate” has the same meaning as in the Income Tax Act 2007 (see section 989 of that Act);

• “chargeable income” means—

  1. (a)

     except where paragraph (b) applies, the earnings derived from the employment less any expenses deducted under paragraph (2)(a) or, as the case may be, (3) of regulation 83;

  2. (b)

     in the case of employment as a child minder, one-third of the earnings of that employment.

• F5“Scottish basic rate” means the rate of income tax of that name calculated in accordance with section 6A of the Income Tax Act 2007;

• “Scottish taxpayer” has the same meaning as in Chapter 2 of Part 4A of the Scotland Act 1998