SCHEDULE Net Weekly Income

Part III Self-employed Earner

8 Figures calculated using gross receipts less deductions
(1) Where—
(a) the conditions of paragraph 7(6) are not satisfied; or
(b) the Department accepts that it is not reasonably practicable for the self-employed earner to provide information relating to his gross earnings from self-employment in the forms submitted to, or as issued or revised by, the Inland Revenue; or
(c) in the opinion of the Department, information as to the gross earnings of the self-employed earner which has satisfied the criteria set out in paragraph 7 does not accurately reflect the normal weekly earnings of the self-employed earner,
net income means in the case of employment as a self-employed earner his earnings calculated by reference to the gross receipts of the employment less the deductions provided for in sub-paragraph (2).
(2) The deductions to be taken from the gross receipts to calculate net earnings for the purposes of this paragraph are—
(a) any expenses which are reasonably incurred and are wholly and exclusively defrayed for the purposes of the earner’s business in the period by reference to which his earnings are determined under paragraph 9(2) or (3);
(b) any value added tax paid in the period by reference to which his earnings are determined in excess of value added tax received in that period;
(c) any amount in respect of income tax determined in accordance with sub-paragraph (4);
(d) any amount of National Insurance contributions determined in accordance with sub-paragraph (4); and
(e) any premium paid by the non-resident parent in respect of a retirement annuity contract or a personal pension scheme or, where that scheme is intended partly to provide a capital sum to discharge a mortgage or a charge secured upon the parent’s home, 75 per centum of contributions payable.
(3) For the purposes of sub-paragraph (2)(a)—
(a) such expenses include—
(i) repayment of capital on any loan used for the replacement, in the course of business, of equipment or machinery, or the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair;
(ii) any income expended in the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair, and
(iii) any payment of interest on a loan taken out for the purposes of the business;
(b) such expenses do not include—
(i) repayment of capital on any other loan taken out for the purposes of the business;
(ii) any capital expenditure;
(iii) the depreciation of any capital assets;
(iv) any sum employed, or intended to be employed, in the setting up or expansion of the business;
(v) any loss incurred before the beginning of the period by reference to which earnings are determined;
(vi) any expenses incurred in providing business entertainment, or
(vii) any loss incurred in any other employment in which he is engaged as a self-employed earner.
(4) For the purposes of sub-paragraph (2)(c) and (d), the amounts in respect of income tax and National Insurance contributions to be deducted from the gross receipts shall be determined in accordance with paragraph 7(4) and (5) as if in paragraph 7(4) references to gross earnings were references to taxable earnings and in this sub-paragraph “taxable earnings” means the gross receipts of the earner less the deductions mentioned in sub-paragraph (2)(a) and (b).
(5) Where the person is a self-employed earner in the Republic of Ireland the amounts to be deducted for income tax and social security contributions shall be such amounts as in the opinion of the Department would have been deducted had the person been employed in Northern Ireland.