The Council Tax Reduction (Scotland) Regulations 2021

Employed earnings (applicants with an award of universal credit) S

49.—(1) This regulation applies for the purposes of calculating earned income from earnings where an applicant or an applicant’s partner has, or the partners jointly have, an award of universal credit.

(2) Employed earnings comprise any amounts that are general earnings, as defined in section 7(3) of ITEPA, but excluding—

(a) amounts that are treated as earnings under Chapters 2 to 11 of Part 3 of ITEPA (the benefits code), and

(b) amounts that are exempt from income tax under Part 4 of ITEPA.

(3) In the calculation of employed earnings the following are to be disregarded—

(a) expenses that are allowed to be deducted under Chapter 2 of Part 5 of ITEPA, and

(b) expenses arising from participation as a service user (see regulation 46(2)).

(4) The following benefits are to be treated as employed earnings—

(a) statutory sick pay,

(b) statutory maternity pay,

(c) statutory paternity pay,

(d) statutory adoption pay,

[F1 (da) statutory neonatal care pay,]

(e) statutory parental bereavement pay,

(f) statutory shared parental pay, and

(g) any corresponding payment under any enactment having effect in Northern Ireland.

(5) A repayment of income tax or national insurance contributions received by an applicant from HMRC in respect of a tax year in which the applicant was in paid work is to be treated as employed earnings unless it is taken into account as self-employed earnings under regulation 51.

(6) In calculating the amount of an applicant’s employed earnings in respect of an assessment period, there are to be deducted from the amount of general earnings or benefits specified in paragraphs (2) to (4)—

(a) any relievable pension contributions made by the applicant in that period,

(b) any amounts paid by the applicant in that period in respect of the employment by way of income tax or primary Class 1 contributions under section 6(1) of the 1992 Act,

(c) any sums withheld as donations to an approved scheme under Part 12 of ITEPA (payroll giving) by an applicant required to make deductions or repayments of income tax under the PAYE Regulations, and

(d) any sum, where applicable, specified in schedule 3.

Textual Amendments

F1 Reg. 49(4)(da) inserted (25.6.2025) by The Council Tax Reduction (Miscellaneous Amendment) (Scotland) (No. 3) Regulations 2025 (S.S.I. 2025/150), regs. 1, 3(4)

Commencement Information

I1 Reg. 49 in force at 1.4.2022, see reg. 1