The Family Credit (General) Amendment No. 4 Regulations 1988

Amendment of regulation 22 of the General Regulations

6.  In regulation 22 of the General Regulations (calculation of net profit of self-employed earners)—

(a) in paragraph (3), after the words “except where paragraph” there shall be inserted the reference “(3A),”; and for the words “over the assessment period” there shall be substituted the words “received in the assessment period”;

(b) after paragraph (3) there shall be inserted the following paragraph—

“(3A) For the purposes of paragraph (1)(a), in a case where the assessment period is determined under regulation 15(1)(b), the net profit of the employment shall, except where paragraph (9) applies, be calculated by taking into account the earnings of the employment relevant to that period (whether or not received in that period), less—

(a) subject to paragraphs (5) to (7), any expenses relevant to that period (whether or not defrayed in that period) and which were wholly and exclusively incurred for the purposes of that employment;

(b) an amount in respect of—

(i) income tax; and

(ii) social security contributions payable under the Social Security Act,

calculated in accordance with regulation 23; and

(c) one-half of any qualifying premium payable.”;

(c) in paragraph (4) after the words “except where paragraph” there shall be inserted the reference “(4A), (9) or”; and for the words “over the assessment period” there shall be substituted the words “received in the assessment period”;

(d) after paragraph (4) there shall be inserted the following paragraph—

“(4A) For the purposes of paragraph (1)(b), in a case where the assessment period is determined under regulation 15(1)(b), the net profit of the employment shall, except where paragraph (9) applies, be calculated by taking into account the earnings of the employment relevant to that period (whether or not received in that period) less, subject to paragraphs (5) to (7), any expenses relevant to that period (whether or not defrayed in that period) and which were wholly and exclusively incurred for the purposes of that employment.”;

(e) in paragraphs (5), (6), (7) and (8) for the words “paragraph (3)(a) or (4)” there shall be substituted in each of those paragraphs the words “paragraphs (3)(a), (3A)(a), (4) or (4A), as the case may be,”;

(f) for paragraph (10) there shall be substituted the following paragraph—

“(10) Where regulation 15(2) (normal weekly earnings of self-employed earners) applies—

(a) for the purposes of paragraph (1)(a), the net profit derived from the employment shall be calculated by taking into account the claimant’s estimated and, where appropriate, actual earnings from the employment less the amount of the deductions likely to be made and, where appropriate, made under sub-paragraphs (a) to (c) of paragraph (3); or

(b) for the purposes of paragraph (1)(b), his share of the net profit of the employment shall be calculated by taking into account the claimant’s estimated and, where appropriate, his share of the actual earnings from the employment less the amount of his share of the expenses likely to be deducted and, where appropriate, deducted under paragraph (4); or

(c) in the case of employment as a child-minder, the net profit of the employment shall be calculated by taking into account one-third of the claimant’s estimated earnings and, where appropriate, actual earnings from that employment less the amount of the deductions likely to be made and, where appropriate, made under sub-paragraphs (a) and (b) of paragraph (9).”.