Regulation 4 Notional earnings

an amount in respect of income tax equivalent to an amount calculated by applying to those earnings the F4basic rate, or in the case of a Scottish taxpayer, the Scottish basic rate, of tax in the year of assessment less only the F5personal 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 his circumstances; but, if the period over which those earnings are to be taken into account is less than a year, the earnings to which the F6basic rate, or the Scottish basic rate, of tax is to be applied and the amount of the personal F7reliefs deductible under this paragraph shall be calculated on a pro rata basis;

where the weekly amount of those earnings equals or exceeds the lower earnings limit, an amount representing primary Class 1 contributions under the Contributions and Benefits Act, calculated by applying to those earnings the initial and main primary percentages in accordance with section 8(1)(a) and (b) of that Act M1; and

one half of any sum payable by the claimant in respect of a pay period by way of a contribution towards an occupational or personal pension scheme.