Regulation 7 Amendment of regulation 23 of the General Regulations

In regulation 23(2) of the General Regulations (deduction of tax and contributions for self-employed earners) for sub-paragraphs (a) and (b) there shall be substituted the following sub-paragraphs—

“(a)

the amount of Class 2 contributions payable under section 7(1) or, as the case may be, (4) of the Social Security Act^f1 at the rate applicable at the date of claim except where a claimant’s chargeable income is less than the amount specified in section 7(5) of that Act^f2 (small earnings exception) for the tax year in which the date of claim falls; but if the assessment period is less than a year, the amount specified for that tax year shall be calculated on a pro rata basis; and

(b)

the amount of Class 4 contributions (if any) which would be payable under section 9(2) of that Act^f3 (Class 4 contributions) at the percentage rate applicable at the date of claim 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 in which the date of claim falls; but, if the assessment period is less than a year, those limits shall be calculated on a pro rata basis.”.