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Paragraph 5 Disposable monthly income

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

A party’s disposable monthly income is the gross monthly income of the party for the month in which the fee becomes payable (“the period”) less the deductions referred to in sub-paragraphs (2) and (3).

(2)

There are to be deducted from the gross monthly income—

(a)

income tax paid or payable in respect of the period;

(b)

any contributions estimated to have been paid under Part 1 of the Social Security Contributions and Benefits Act 1992, or the corresponding provisions of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, in respect of the period;

(c)

either—

(i)

monthly rent or monthly payment in respect of a mortgage debt or hereditable security, payable in respect of the only or main dwelling of the party, less any housing benefit paid under the Social Security Contributions and Benefits Act 1992 or the Social Security Contributions and Benefits (Northern Ireland) Act 1992; or

(ii)

the monthly cost of the living accommodation of the party;

(d)

any child care costs paid or payable in respect of the period;

(e)

if the party is making bona fide payments for the maintenance of a child who is not a member of the household of the party, the amount of such payments paid or payable in respect of the period; and

(f)

any amount paid or payable by the party, in respect of the period, in pursuance of a court order.

(3)

There is to be deducted from the gross monthly income an amount representing the cost of living expenses in respect of the period being—

(a)

£315; plus

(b)

£244 for each child of the party; plus

(c)

£159, if the party has a partner.

(4)

In this paragraph—

  • “child” means a child or young person in respect of whom a party is entitled to receive child benefit in accordance with section 141, and regulations made under section 142, of the Social Security Contributions and Benefits Act 1992, or the corresponding provisions of, or corresponding regulations made under, the Social Security Contributions and Benefits (Northern Ireland) Act 1992, and references to “children” in this Schedule should be construed accordingly;

  • “child care costs” means the costs of care which is provided by one of more of the following care providers—

    1. (a)

      a school on school premises, out of school hours;

    2. (b)

      a local authority, out of school hours—

      1. (i)

        for children who are not disabled, in respect of the period beginning on their eighth birthday and ending on the day preceding the first Monday in September following their fifteenth birthday;

      2. (ii)

        for children who are disabled, in respect of the period beginning on their eighth birthday and ending on the day preceding the first Monday in September following their sixteenth birthday;

    3. (c)

      a child care provider approved in accordance with the Tax Credit (New Category of Child Care Provider) Regulations 1999f1;

    4. (d)

      persons registered under Part XA of the Children Act 1989f2 or the corresponding provision of the Children (Northern Ireland) Order 1995;

    5. (e)

      persons in schools or establishments referred to in paragraph 1 or 2 of Schedule 9A to the Children Act 1989 or in the corresponding provision of the Children (Northern Ireland) Order 1995;

    6. (f)

      persons prescribed in regulations made pursuant to section 12(4) of the Tax Credits Act 2002.

Annotations

Footnotes

f1

1989 c. 41.

f2

S.I. 1999/3110.