Legalize / United Kingdom / Scotland / Scottish-Statutory-Instrument

The Carer’s Assistance (Carer Support Payment) (Scotland) Regulations 2023

Type Scottish-Statutory-Instrument

Publication 2023-10-25

Last updated 2025-11-16

State In force

Jurisdiction Scotland

Department King's Printer for Scotland

Source legislation.gov.uk

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(b) without the individual’s agreement, where the individual has unreasonably refused to agree to the assistance being given in that form.

(2) For the purposes of paragraph (1), “reasonable level” means a level that is reasonable having regard to the financial circumstances of the individual.

When a decrease in amount or cessation of entitlement takes effect

27

(1) Where, as a result of a determination without application, the amount of Carer Support Payment payable in respect of an individual is decreased or their entitlement to Carer Support Payment ceases, the change takes effect—

(a) in the case of a determination without application under regulation 35 (consideration of entitlement after specified period) or 36(a) (determination following change of circumstances etc.), on the first day of the award week following the award week in which—

(i) the individual should have notified the Scottish Ministers of the change, where the individual was required to notify a change under section 56 of the 2018 Act, if the individual—

(aa) knowingly fails to notify a change, or

(bb) fails to notify the change as soon as reasonably practicable after it occurred, or

(ii) in any other case, the Scottish Ministers make the determination,

(ab) in the case of a decrease pursuant to a determination made under regulation 36(f) or 36(g) (determination following change of circumstances etc.), on the day on which the individual’s entitlement to Carer’s Allowance ceased,

(b) in the case of an earlier determination which was based on error within the meaning of regulation 37 (determination following official error – underpayments) or regulation 38 (determination following error – overpayments), on the first day of the award week in which the earlier determination took effect,

(c) in any other case, on the first day of the award week following the award week in which the Scottish Ministers make the determination.

(2) Where the Scottish Ministers consider that in all the circumstances it would be unjust not to do so, they may, when making their determination, set a later date for the purposes of paragraph (1).

When an increase in amount of entitlement takes effect

28

(1) Where, as a result of a determination without application, the amount of Carer Support Payment payable in respect of an individual is increased, the change takes effect—

(a) in the case of an increase pursuant to a determination made under regulation 36(a) or (b) (determination following change of circumstances etc.), on the first day of the award week in which—

(i) the individual first satisfies the requirements for an increased amount of Carer Support Payment—

(aa) where the individual reports the change within 13 weeks of the change occurring, or

(bb) where the individual reports the change more than 13 weeks after the change occurring, but only if the Scottish Ministers consider that the individual has good reason for not reporting the change within 13 weeks, or

(ii) in any other case, the individual reports the change,

(iii) where as a result of the Scottish Ministers becoming aware that a determination of an individual’s entitlement was made in ignorance of a material fact, the Scottish Ministers make the determination.

(ab) in the case of an increase pursuant to a determination made under regulation 36(f) or 36(g) (determination following change of circumstances etc.) on the day on which the individual’s entitlement to Carer’s Allowance ceased,

(b) in the case of an earlier determination which was based on error within the meaning of regulation 37 (determination following official error – underpayments) or regulation 38 (determination following error – overpayments), on the first day of the award week in which the earlier determination took effect,

(c) in any other case, on the first day of the award week following the award week in which the Scottish Ministers make the determination.

(2) Where the Scottish Ministers consider that in all the circumstances it would be unjust not to do so, they may, when making their determination, set an earlier date for the purposes of paragraph (1).

PART 5 — Suspensions

Circumstances in which assistance may be suspended

29

(1) The Scottish Ministers may decide that an individual who has an ongoing entitlement to Carer Support Payment in respect of a period by virtue of regulation 25 (continuing eligibility) is not to become entitled to be given some or all of that assistance at the time at which the individual otherwise would in accordance with that regulation, as read with regulation 22 (time of payment) (referred to in these Regulations as a decision to suspend the individual’s Carer Support Payment).

(2) Where such a decision is made in respect of an individual, payments of Carer Support Payment to that individual are to be suspended until such a time as the Scottish Ministers decide that the individual is once again to become entitled to be given Carer Support Payment.

(3) The Scottish Ministers may decide to suspend an individual’s Carer Support Payment only in the circumstances where—

(a) section 54(1A) of the 2018 Act⁷⁶ applies, or

(b) the Scottish Ministers have made arrangements (whether under section 85B of the 2018 Act⁷⁷ or otherwise) for a person to receive Carer Support Payment on the individual’s behalf, and the Scottish Ministers consider that it is necessary to suspend the Carer Support Payment—

(i) in order to protect the individual from the risk of financial abuse, or

(ii) because the person with whom the Scottish Ministers have made arrangements is unable to continue to receive the Carer Support Payment.

(i) having money or other property stolen,

(ii) being defrauded,

(iii) being put under pressure in relation to money or other property,

(iv) having money or other property misused.

Having regard to financial circumstances

30

The Scottish Ministers must have regard to an individual’s financial circumstances prior to making a decision to suspend payment to the individual of some or all of Carer Support Payment.

Information to be given following suspension

31

(1) Having made a decision to suspend an individual’s Carer Support Payment, the Scottish Ministers must inform the individual of—

(a) their decision to suspend the individual’s Carer Support Payment,

(b) the reasons for their decision,

(c) any steps which might be taken by the individual in order for the Scottish Ministers to consider ending the suspension, and

(d) the individual’s right under regulation 32 (right to review suspension) to require the Scottish Ministers to review their decision.

(2) The Scottish Ministers must fulfil their duty under paragraph (1) in a way that leaves the individual with a record of the information which the individual can show to, or otherwise share with, others.

Right to review suspension

32

(1) An individual may require the Scottish Ministers to review a decision to suspend that individual’s Carer Support Payment.

(2) The Scottish Ministers must—

(a) complete a review mentioned in paragraph (1) within 31 days beginning with the day on which they received notice from the individual requiring them to review their decision,

(b) inform the individual of the outcome of the review including the reasons for it.

(3) The Scottish Ministers must fulfil their duty under paragraph (2)(b) in a way that leaves the individual with a record of the information which the individual can show to, or otherwise share with, others.

Ending a suspension

33

The Scottish Ministers are to make a decision to end a suspension where—

(a) the individual provides the information requested under section 54(1) of the 2018 Act⁷⁸ and the Scottish Ministers consider that they do not require to make a determination without application,

(b) regulation 29(3)(a) (circumstances in which assistance may be suspended) applies and the Scottish Ministers make a determination without application under regulation 35 (consideration of entitlement after specified period), 36 (determination following change of circumstances, etc.), 37 (determination following official error – underpayments), 38 (determination following error – overpayments) or 39 (determination to effect a deduction decision),

(d) the circumstances mentioned in regulation 29(3)(b) (circumstances in which assistance may be suspended) no longer apply, or

(e) the Scottish Ministers consider it appropriate in the circumstances, including having regard to the financial circumstances of the individual.

Effect of suspension ending

34

When—

(a) the suspension of an individual’s Carer Support Payment ends, and

(b) under the latest determination of the individual’s entitlement to Carer Support Payment relating to the period of the suspension the individual would have become entitled to be given Carer Support Payment during that period,

the individual is immediately to be given the Carer Support Payment that the individual would have become entitled to be given under the determination during the period of suspension.

PART 6 — Re-consideration of entitlement to Carer Support Payment: determination without application

Consideration of entitlement after specified period

35

The Scottish Ministers must make a determination of an individual’s entitlement to Carer Support Payment, without receiving an application, after the end of the period specified (if any) in—

(a) the individual’s notice of determination under section 40 or notice of re-determination under section 44 (as the case may be), or

(b) a determination made by the First-tier Tribunal for Scotland under section 49,

of the 2018 Act.

Determination following change of circumstances etc.

36

The Scottish Ministers must make a determination of an individual’s entitlement to Carer Support Payment, without receiving an application, where the individual has an ongoing entitlement to Carer Support Payment and they become aware—

(a) of a change of circumstances whether or not notified by the individual in accordance with section 54 or 56 of the 2018 Act,

(b) that a determination of an individual’s entitlement was made in ignorance of a material fact which is likely to result in an alteration to the amount of Carer Support Payment payable to the individual or which is likely to mean that the individual is no longer entitled to Carer Support Payment,

(d) that the cared for person has died,

(e) that the individual has notified the Scottish Ministers that they wish for their entitlement to assistance to begin on a date prior to the day on which their application was treated as made, provided that—

(i) the date chosen by the individual—

(aa) is no earlier than 19 November 2023 where regulation 18A(1) (entitlement beginning before individual satisfied the residence requirements in regulation 46) applies to that individual,

(bb) is no earlier than 23 June 2024 where regulation 18B(1) (entitlement beginning before individual satisfied the residence requirements in regulation 46 – individuals in education mentioned in regulation 13(2)) applies to that individual, or

(cc) in any other case, no more than 13 weeks prior to the day on which their application is treated as made,

(ii) the individual satisfied the eligibility requirements set out in Part 3 of these Regulations on that chosen date , and

(iii) the individual notifies the Scottish Ministers—

(aa) within 13 weeks of the date on which their entitlement to Carer Support Payment was determined on the basis of an application, or

(bb) where the Scottish Ministers consider that the individual has good reason for not notifying that they wish for their entitlement to assistance to begin on a date prior to the day on which their application was treated as made within the period referred to in head (aa), on a later date.

(f) of an alteration of the award of Carer’s Allowance which the individual was entitled to immediately before the date of transfer to Carer Support Payment in accordance with Part 2 of schedule 1, as a result of a decision made pursuant to—

(i) a revision under regulation 3 of the Social Security and Child Support (Decisions and Appeals) Regulations 1999⁸⁰ (“the 1999 Regulations”),

(ii) a supersession under regulation 6 of the 1999 Regulations,

(iii) an appeal under section 12 of the Social Security Act 1998 (“the 1998 Act”)⁸¹,

(iv) a redetermination under section 13 of the 1998 Act,

(v) an appeal to the Upper Tribunal under section 14 of the 1998 Act,

(vi) a revision under article 10 of the Social Security (Northern Ireland) Order 1998⁸² (“the 1998 Order”),

(vii) a supersession under article 11 of the 1998 Order,

(viii) an appeal under article 13 of the 1998 Order, or

(ix) an appeal to the Commissioner under article 15 of the 1998 Order,

(g) of an alteration of the award of Carer’s Allowance which the individual was entitled to immediately before moving to Scotland in circumstances in which regulation 41 (individuals in respect of whom Carer’s Allowance is paid in another part of the United Kingdom immediately before moving to Scotland) applies, as a result of a decision made pursuant to—

(i) a revision under regulation 3 of the Social Security and Child Support (Decisions and Appeals) Regulations 1999 (“the 1999 Regulations”),

(ii) a supersession under regulation 6 of the 1999 Regulations,

(iii) an appeal under section 12 of the Social Security Act 1998 (“the 1998 Act”),

(iv) a re-consideration under section 13 of the 1998 Act,

(v) an appeal to the Upper Tribunal under section 14 of the 1998 Act,

(vi) a revision under article 10 of the Social Security (Northern Ireland) Order 1998⁸³ (“the 1998 Order”),

(vii) a supersession under article 11 of the 1998 Order,

(viii) an appeal under article 13 of the 1998 Order, or

(ix) an appeal to the Commissioner under article 15 of the 1998 Order.

Determination following official error - underpayments

37

(1) The Scottish Ministers are to make a determination of an individual’s entitlement to Carer Support Payment, without receiving an application, where—

(a) they have previously made a determination of the individual’s entitlement to Carer Support Payment (“the original determination”),

(b) they establish that, due to an official error, the original determination was incorrect resulting in the individual—

(i) not being given an award of Carer Support Payment, or

(ii) being given a lower award than that,

to which the individual was entitled,

(c) the Scottish Ministers are not considering a request for a re-determination of the individual’s entitlement to Carer Support Payment, and

(d) the individual has not appealed to the First-tier Tribunal for Scotland against the Scottish Minister’s determination of the individual’s entitlement to Carer Support Payment.

(2) In making a determination required by paragraph (1) the Scottish Ministers are to use—

(a) any information—

(i) provided in the application that led to the original determination,

(ii) they have obtained in connection with that application, and

(b) any other information they have obtained in connection with the individual’s entitlement to Carer Support Payment.

(3) In this regulation “official error” means an error made by someone acting on behalf of the Scottish Ministers or on behalf of a Minister of the Crown that was not materially contributed to by anyone else.

Determination following error – overpayments

38

(1) The Scottish Ministers are to make a determination of an individual’s entitlement to Carer Support Payment, without receiving an application, where—

(a) they have previously made a determination of the individual’s entitlement to Carer Support Payment (“the original determination”),

(b) they establish that, due to an error, the original determination was incorrect resulting in the individual being given—

(i) an award of Carer Support Payment to which the individual was not entitled, or

(ii) a higher award than that to which the individual was entitled,

(c) the Scottish Ministers are not considering a request for a re-determination of the individual’s entitlement to Carer Support Payment, and

(d) the individual has not made an appeal to the First-tier Tribunal for Scotland or Upper Tribunal against the Scottish Minister’s determination of the individual’s entitlement to Carer Support Payment, that has not yet been determined.

(2) In making a determination required by paragraph (1) the Scottish Ministers are to use—

(a) any information—

(i) provided in the application that led to the original determination, and

(ii) they have obtained in connection with that application,

(b) any other information they have obtained in connection with the individual’s entitlement to Carer Support Payment, and

(c) any other information available to them that is relevant to their consideration of whether the individual is entitled to Carer Support Payment.

(3) In this regulation references to an “error” are to—

(a) an error in the performance of a function conferred by these Regulations or the 2018 Act, including a determination being made—

(i) wrongly, or

(ii) correctly but on the basis of—

(aa) incorrect information, or

(bb) an assumption which proves to be wrong, or

(b) a new determination not being made after an assumption on the basis of which an earlier determination was made has proved to be wrong.

Determination to effect a deduction decision

39

(1) The Scottish Ministers are to make a determination of an individual’s entitlement to Carer Support Payment, without receiving an application, where the circumstances in paragraphs (2) and (3) apply.

(2) This paragraph applies where—

(a) regulation 26 (form of payment – giving Carer Support Payment by way of deduction) allows Carer Support Payment to be given to the individual by way of deduction, or

(b) Carer Support Payment is being given to the individual by way of deduction, and the Scottish Ministers consider that may no longer be appropriate.

(3) This paragraph applies where the Scottish Ministers have decided to—

(a) vary the amount of Carer Support Payment to be given by way of deduction (including introducing a deduction, where the full amount of Carer Support Payment was previously given as money),

(b) vary any period for which the individual’s Carer Support Payment is to be given by way of deduction, that may have been specified in a previous determination of the individual’s entitlement, or

(4) The Scottish Ministers are to make a determination, without receiving an application, where an individual who is receiving Carer Support Payment by way of deduction under a previous determination of entitlement notifies the Scottish Ministers that the individual—

(a) withdraws their agreement to their Carer Support Payment being given by way of deduction,

(b) wishes the Scottish Ministers to increase the amount of their Carer Support Payment that is given by way of deduction,

(c) wishes the Scottish Ministers to decrease the amount of their Carer Support Payment that is given by way of deduction (including ceasing the deduction), or

(d) wishes the Scottish Ministers to amend the length of any period referred to in paragraph (3)(b).

PART 7 — Breaks in care

Temporary break in care

40

(1) An award week in respect of which an individual fails to satisfy the requirement of regulation 5(2) (provision of care to a cared for person) is to be treated as an award week in respect of which that individual satisfies that requirement if—

(a) that individual has only temporarily ceased to satisfy it, and

(b) that individual has satisfied it for at least 14 weeks in the period of 26 weeks ending with that award week and would have satisfied it for at least 22 weeks in that period but for the fact that—

(i) that individual was undergoing medical or other treatment as an in-patient in a hospital or similar institution, or

(ii) the cared for person was undergoing medical or other treatment as an in-patient in a hospital or similar institution.

(2) Regulation 14 (earnings limit) does not apply to an individual in respect of an award week mentioned in paragraph (1).

(3) Paragraph (1) applies to an individual who fails to satisfy the requirement of regulation 5(2) because they are in legal detention, provided the individual satisfies the requirements of this regulation.

PART 8 — Movement of individuals between Scotland and the rest of the United Kingdom

Individuals in respect of whom Carer’s Allowance is paid in another part of the United Kingdom immediately before moving to Scotland

41

(1) Where an individual—

(a) becomes resident in Scotland,

(b) was resident in another part of the United Kingdom, and

the Scottish Ministers are to make a determination without application of the individual’s entitlement to Carer Support Payment.

(2) Entitlement to Carer Support Payment under paragraph (1) begins on the day after the day on which the individual’s entitlement to Carer’s Allowance ends.

(3) In this regulation, “the date of the move” is the date when the individual becomes resident in Scotland, as notified by the individual or otherwise communicated to the Scottish Ministers (whether the notification takes place before or after the date of the move).

Individuals in respect of whom Carer Support Payment is paid at the time of moving to another part of the United Kingdom

42

(1) Subject to paragraph (1A), where the Scottish Ministers become aware that an individual who is entitled to Carer Support Payment has moved or is to move to become resident in another part of the United Kingdom, the individual is to be treated as though the individual meets the condition under regulation 6(1)(a) (residence and presence conditions) of being ordinarily resident in Scotland for a period of 13 weeks beginning in accordance with paragraph (4).

(1A) Where the cared for person dies within the period of 13 weeks referred to in paragraph (1), the individual is to be treated as though the individual meets the condition under regulation 6(1)(a) of being ordinarily resident in Scotland for a period of 8 award weeks after the first day of the award week following the award week in which the cared for person died.

(2) Where the Scottish Ministers become aware that an individual has moved or is to move to another part of the United Kingdom mentioned in paragraph (1), they are to make a determination without application at the end of the 13-week period mentioned in paragraph (1) that the individual’s entitlement to Carer Support Payment is to terminate.

(3) Where before the end of the 13-week period, the Scottish Ministers become aware that—

(a) the individual is no longer to move to become resident in another part of the United Kingdom, or

(b) the cared for person has died,

the duty in paragraph (2) does not apply.

(4) The 13-week period mentioned in paragraph (1) begins on the date the individual ceases to be ordinarily resident in Scotland.

(5) On the day after the 13-week period specified in paragraph (4) ends—

(a) entitlement to Carer Support Payment ceases, and

(b) regulation 38 (determination following error – overpayments) applies to any Carer Support Payment paid to an individual in relation to a period after the end of that 13-week period.

PART 9 — Periods in respect of a re-determination request

Periods in respect of a re-determination request

43

(1) The period for requesting a re-determination of entitlement to Carer Support Payment under section 41 of the 2018 Act is 42 days beginning with the day that the individual is informed, in accordance with section 40 of the 2018 Act, of the right to make the request.

(2) In relation to determining entitlement to Carer Support Payment, the period allowed for re-determination (within the meaning of section 43 of the 2018 Act) is 56 days beginning with—

(a) the day that the request for a re-determination is received by the Scottish Ministers,

(b) in a case where the request for a re-determination is received by the Scottish Ministers outwith the period prescribed in paragraph (1), the day on which it is decided by the Scottish Ministers or (as the case may be) the First-tier Tribunal for Scotland that the individual in question has a good reason for not requesting a re-determination sooner, or

(c) in a case where the Scottish Ministers have informed the individual of their decision that the request for a re-determination was not made in such form as the Scottish Ministers require, the day on which it is subsequently decided by the First-tier Tribunal for Scotland that the individual in question has made the request in such form as the Scottish Ministers require.

PART 10 — Transfer from Carer’s Allowance to Carer Support Payment

Transfer from Carer’s Allowance to Carer Support Payment

44

Part 2 of schedule 1 makes provision about transferring from Carer’s Allowance to Carer Support Payment.

PART 11 — Initial period for applications

Initial period for applications

45

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 12 — Transitory provision

Transitory provision – initial period for applications

46

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exclusion to transitory provision

47

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 13 — Consequential amendments

Consequential amendments

48

The amendments specified in Part 3 of schedule 1 have effect.

SCHEDULE 1

PART 1 — Initial period for applications

Initial period for applications

1.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Local authority areas for initial period for applications

2.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 2 — Transfer to Carer Support Payment

Interpretation

3

In this Part of the schedule—

“date of transfer” means the date when a transferring individual’s entitlement to Carer Support Payment begins by virtue of a determination made under paragraph 5(1),

“relevant individual” means an individual—who has an award of Carer’s Allowance who appears to the Scottish Ministers to be likely to be eligible for Carer Support Payment, andwho is—ordinarily resident in Scotland, orsomeone to whom regulation 6(3) (residence and presence conditions) or 11(2) (persons residing outside the United Kingdom to whom a relevant EU regulation applies) applies,

“sufficient” means a link to Scotland that is sufficiently close that regulation 6(3) or 11(2) would be incompatible with the applicable agreement mentioned in that regulation, if the relevant individual were not entitled to Carer Support Payment,

“transfer notice” means the notice required by paragraph 4, and

“transferring individual” means an individual on whom the Scottish Ministers have served a notice of intention to transfer in accordance with paragraph 4.

Notice of intention to transfer to Carer Support Payment

4

(1) The Scottish Ministers are to notify each relevant individual of their intention to transfer that individual’s entitlement to carer’s assistance from an entitlement to Carer’s Allowance to an entitlement to Carer Support Payment.

(2) Notice under sub-paragraph (1) must—

(a) be given in a way that leaves the relevant individual with a record of the information which they can show to, or otherwise share with, others,

(b) inform the relevant individual that—

(i) they have been identified as a relevant individual for the purpose of transfer to Carer Support Payment,

(ii) the Scottish Ministers will make a determination without receiving an application to transfer the individual’s entitlement to Carer’s Allowance to an entitlement to Carer Support Payment within a period to be specified in the notice (the individual will be notified when the determination is made and informed about their award and start date of Carer Support Payment), and

(iii) the individual’s award of Carer’s Allowance will cease immediately before the award of Carer Support Payment begins.

(3) Where a notice under sub-paragraph (1) is given—

(a) to a transferring individual who, before a determination is made under paragraph 5(1)—

(i) ceases to be ordinarily resident in Scotland, or

(ii) cares for a cared for person who dies, or

(b) in error where the individual is neither—

(i) ordinarily resident in Scotland, nor

(ii) an individual who is habitually resident in an EEA state, Gibraltar or Switzerland and has a genuine and sufficient link to Scotland,

the duty on the Scottish Ministers in paragraph 5(1) does not apply.

(4) Where sub-paragraph (3) applies in respect of an individual and a determination under paragraph 5(1) has not been made, the Scottish Ministers are to notify the individual that the duty on the Scottish Ministers in paragraph 5(1) does not apply.

Determination without application of entitlement to Carer Support Payment

5

(1) The Scottish Ministers are to make a determination without receiving an application in respect of a transferring individual of that individual’s entitlement to Carer Support Payment.

(2) Entitlement to Carer Support Payment under a determination under sub-paragraph (1) begins on the date specified in the notice of determination given to the transferring individual in accordance with section 40 of the 2018 Act.

(3) The determination under sub-paragraph (1) is to be made on the basis of—

(a) such information as the Scottish Ministers have received from the Secretary of State in respect of the transferring individual’s entitlement to Carer’s Allowance, and

(b) any other information available to the Scottish Ministers that appears to be relevant.

(4) A determination under sub-paragraph (1) must be made on the basis that the transferring individual is entitled to the amount of Carer Support Payment that is equivalent to the amount of Carer’s Allowance to which the individual was entitled immediately before the date of transfer.

(5) A determination under sub-paragraph (1)—

(a) may be made on the assumption that whatever can be discerned about the transferring individual’s circumstances from the information mentioned in sub-paragraph (3) remains accurate on the date on which the determination is made,

(b) notwithstanding the generality of head (a), is to be made on the assumption that the conditions relating to residence and presence set out in regulations 6 to 11 (residence and presence conditions etc.) are satisfied in the individual’s case, and

(c) must be made no later than the period specified in the notice under paragraph 4(1) (notice of intention to transfer to Carer Support Payment) unless the Scottish Ministers have—

(i) good reason to extend that period,

(ii) agreed the period for extension with the Secretary of State, and

(iii) notified the transferring individual of the extension and reason for it.

(6) Where the Scottish Ministers make a determination under paragraph (1) that a transferring individual is entitled to Carer Support Payment, for the week in which that determination takes place, “award week” means—

(a) where the individual cares for a cared for person who is in receipt of Constant Attendance Allowance, a period of 4 days, starting on the Wednesday of that week and ending on the following Saturday, or

(b) in all other cases, a period of 6 days, starting on the Monday of that week and ending on the following Saturday.

Date of cessation of Carer’s Allowance

6

Where a determination is made under paragraph 5(1) (determination without application of entitlement to Carer Support Payment) that the transferring individual is entitled to Carer Support Payment, the transferring individual’s entitlement to Carer’s Allowance will cease on the date their entitlement to Carer Support Payment begins.

Modification of these regulations: transferring individuals

7

These Regulations apply to a transferring individual on and after the date of transfer with the following modifications—

Appointees

8

(1) A person appointed by the Secretary of State under regulation 33 (persons unable to act) of the Social Security (Claims and Payments) Regulations 1987⁸⁴ to receive Carer’s Allowance on behalf of a transferring individual is to be treated on and after the date of transfer as though appointed by the Scottish Ministers to act on behalf of that transferring individual under section 85B of the 2018 Act.

(2) As soon as reasonably practicable after the date of transfer, the Scottish Ministers must—

(a) consider whether the conditions for making an appointment in respect of the transferring individual are met (having regard to section 85B(3) of the 2018 Act),

(b) consider whether to terminate the appointment that is treated as having been made by virtue of sub-paragraph (1) and terminate it if they consider it appropriate, and

(c) if they have terminated an appointment in pursuance of head (b), appoint under section 85B of the 2018 Act another person to act on the transferring individual’s behalf if they consider it appropriate to do so.

(3) The duty in paragraph (2) does not apply to a person in respect of whom the Scottish Ministers have already—

(a) appointed to act on behalf of that transferring individual under section 85B of the 2018 Act, or

(b) considered whether the conditions for making an appointment are met in accordance with paragraph 15 (appointees) of Part 3 of schedule 2 of the Disability Assistance for Working Age People (Scotland) Regulations 2022⁸⁵ or paragraph 14 (appointees) of Part 3 of the schedule of the Disability Assistance for Children and Young People (Scotland) Regulations 2021⁸⁶.

PART 3 — Consequential amendments

Amendment of the 2018 Act

9

(1) Section 81 of the 2018 Act is amended in accordance with sub-paragraphs (2) to (5).

(2) In subsection (2), for paragraph (a) substitute—

(a) in receipt of— (i) a carer’s allowance under section 70 of the Social Security Contributions and Benefits Act 1992⁸⁷, or (ii) carer support payment under the Carer’s Assistance (Carer Support Payment) (Scotland) Regulations 2023 (S.S.I. 2023/302), and

(3) In subsection (9), for paragraph (a) substitute—

(a) in receipt of— (i) a carer’s allowance under section 70 of the Social Security Contributions and Benefits Act 1992, or (ii) carer support payment under the Carer’s Assistance (Carer Support Payment) (Scotland) Regulations 2023 (S.S.I. 2023/302),

(4) In subsection (11), for paragraph (a) substitute—

(a) in receipt of— (i) a carer’s allowance under section 70 of the Social Security Contributions and Benefits Act 1992, or (ii) carer support payment under the Carer’s Assistance (Carer Support Payment) (Scotland) Regulations 2023 (S.S.I. 2023/302),

(5) In subsection (13), for paragraph (a) substitute—

(a) in receipt of— (i) a carer’s allowance under section 70 of the Social Security Contributions and Benefits Act 1992, or (ii) carer support payment under the Carer’s Assistance (Carer Support Payment) (Scotland) Regulations 2023 (S.S.I. 2023/302),

Amendment of the Carer’s Allowance Supplement and Young Carer Grants (Residence Requirements and Procedural Provisions) (EU Exit) (Scotland) Regulations 2020

10

(1) The Carer’s Allowance Supplement and Young Carer Grants (Residence Requirements and Procedural Provisions) (EU Exit) (Scotland) Regulations 2020⁸⁸ are amended in accordance with sub-paragraph (2).

(2) In regulation 7(b), for paragraph (i) substitute—

(i) the Scottish Ministers establish that the individual has received an award of— (aa) carer’s allowance under section 70 of the Social Security Contributions and Benefits Act 1992⁸⁹, (bb) carer support payment under the Carer’s Assistance (Carer Support Payment) (Scotland) Regulations 2023 (S.S.I. 2023/302),

Amendment of the Carer’s Assistance (Young Carer Grants) (Scotland) Regulations 2019

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(1) The Carer’s Assistance (Young Carer Grants) (Scotland) Regulations 2019⁹⁰ are amended in accordance with sub-paragraph (2).

(2) In regulation 7(1) (further eligibility conditions)—

(a) after “young carer grant if,”, insert “at any point in the qualifying period or”, and

(b) omit “in respect of any of the persons being cared for”.

SCHEDULE 2 — Calculation of earnings

Interpretation

1

In this schedule—

“basic rate” means the rate of income tax of that name determined in accordance with section 6(2) of the Income Tax Act 2007⁹¹,

“board and lodging accommodation” means—accommodation provided to a person or, if they are a member of a family, to them or any other member of their family, for a charge which includes the provision of that accommodation and at least some cooked or prepared meals (which are provided by a person other than the person to whom the accommodation is provided or a member of their family) and are consumed in that accommodation, oraccommodation provided to a person in a hotel, guest house, lodging house or some similar establishment,

except accommodation provided by a close relative of theirs or of any other member of their family, or other than on a commercial basis,

“close relative” means a parent, parent-in-law, son, son-in-law, daughter, daughter-in-law, step-parent, step-son, step-daughter, brother, sister, or if any of the preceding persons is one member of a couple, the other member of that couple,

“dwelling occupied as the home” means the dwelling together with any garage, garden and outbuildings, normally occupied by the individual as their home including any premises not so occupied which it is impracticable or unreasonable to sell separately, in particular, in Scotland, any croft land on which the dwelling is situated,

“employed earner” means a person who is in gainful employment in Great Britain under a contract of service, or in an office (including elective office) with emoluments chargeable to income tax under schedule E of the Income and Corporation Taxes Act 1988 and includes—a person in any employment which would be such employment if it were in Great Britain, anda person in any such employment which, in accordance with the provisions of the 1992 Act and of any regulations made under it, is to be disregarded in relation to liability for contributions,

“employment” includes any trade, business, profession, office or vocation,

“individual” means any person making an application for Carer Support Payment or transferring from Carer’s Allowance to Carer Support Payment under these Regulations,

“maximum weekly amount” means the maximum weekly amount which, on the date on which the payment of compensation is made, is specified in section 227(1) of the Employment Rights Act 1996⁹²,

“occupational pension scheme” has the same meaning as in section 1 of the Pension Schemes Act 1993⁹³,

“pay period” means the period in respect of which an individual is, or expects to be, normally paid by their employer, being a week, a fortnight, 4 weeks, a calendar month, or such other period as the case may be,

“personal pension scheme” has the same meaning as in section 1 of the Pension Schemes Act 1993 and, in the case of a self-employed earner, includes a scheme approved by the Inland Revenue under Chapter IV of Part XIV of the Income and Corporation Taxes Act 1988,

“relevant earnings limit” means the earnings limit set out in regulation 14 of these Regulations,

“retirement annuity contract” means a contract or trust scheme approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988,

“Scottish basic rate” means the rate of income tax of that name calculated in accordance with section 6A of the Income Tax Act 2007⁹⁴,

“Scottish taxpayer” has the same meaning as in Chapter 2 of Part 4A of the Scotland Act 1998⁹⁵,

“self-employed earner” means a person who is in gainful employment in Great Britain otherwise than as an employed earner and includes a person in any—employment which would be such employment if it were in Great Britain, andsuch employment which, in accordance with the provisions of the 1992 Act and of any regulations made under it, is to be disregarded in relation to liability for contributions, and

“year of assessment” means, with reference to any income tax, the year for which such tax was granted by any enactment granting income tax.

Calculation of earnings

2

(1) For the purposes of regulation 14 (earnings limit), the earnings of an individual are to be calculated by determining the weekly amount of their earnings in accordance with this schedule.

(2) The amount of an individual’s earnings for any period are the whole of those earnings (including any earnings which they are treated as possessing under paragraph 3 (notional earnings)) except in so far as paragraphs 9 (calculation of net earnings of employed earners) and 12 (calculation of net profit of self-employed earners) provide that certain sums are to be disregarded or deducted.

Notional earnings

3

(1) Where an individual’s earnings are not ascertainable at the date on which the Scottish Ministers are determining the individual’s entitlement to Carer Support Payment or considering whether they are required to make a determination of the individual’s entitlement to Carer Support Payment without receiving an application, the individual is treated as possessing such earnings as is reasonable in the circumstances having regard to the number of hours worked and the earnings paid for comparable employment.

(2) Where an individual is treated as possessing any earnings under sub-paragraph (1), this schedule applies for the purposes of calculating the amount of those earnings as if a payment had actually been made and as if they were actual earnings which that individual does possess, except that paragraph 9(3) (calculation of net earnings of employed earners) does not apply and their net earnings are calculated by taking into account the earnings which they are treated as possessing, less—

(a) an amount in respect of income tax equivalent to an amount calculated by applying to those earnings the basic rate, or in the case of a Scottish taxpayer, the Scottish basic rate, of tax in the year of assessment less only the personal reliefs to which the individual is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 as are appropriate to their 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 basic rate, or Scottish basic rate, of tax is to be applied and the amount of the personal reliefs deductible under this paragraph are calculated on a pro rata basis,

(b) where the weekly amount of those earnings equals or exceeds the lower earnings limit, an amount representing primary Class 1 contributions under the 1992 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, and

(c) one half of any sum payable by the individual in respect of a pay period by way of a contribution towards an occupational or personal pension scheme,

(d) any care charges to which paragraph 15 (care charges to be deducted in the calculation of earnings) applies up to a maximum deduction, in respect of such care charges incurred by any individual, of 50% of their notional earnings.

Rounding of fractions

4

Where any calculation under this schedule results in a fraction of a penny that fraction is, if it would be to individual’s advantage, treated as a penny, otherwise it is disregarded.

Calculation of earnings of employed earners

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(1) Earnings derived from employment as an employed earner are calculated or estimated over a period determined in accordance with the following paragraphs and at a weekly amount determined in accordance with paragraph 7 (calculation of weekly amount of earnings).

(2) Subject to sub-paragraphs (3) and (5) to (7), the period over which a payment is to be taken into account—

(a) in a case where it is payable in respect of a period, is a period equal to the total number of award weeks in the period commencing on the date on which the earnings are treated as paid under paragraph 6 (date on which earnings are treated as paid) and ending on the day before the date on which earnings of the same kind (excluding earnings of the kind mentioned in paragraph 8(1)(a) to (j)) and from the same source would, or would if the employment was continuing, next be treated as paid under that paragraph, or

(b) in any other case, and where it would cause the individual’s earnings to exceed the relevant earnings limit if it were taken into account only in respect of the period in which it was received, is a period equal to such number of weeks as is equal to the number (less any fraction of a whole number) calculated in accordance with the formula—

$$PQ+R$where—P is the net earnings,Q is the amount of the relevant earnings limit plus one penny, andR is the total of the sums which would fall to be disregarded or deducted as appropriate under paragraph 9(2) (calculation of net earnings of employed earners),and that period begins on the date on which the payment is treated as paid under paragraph 6 (date on which earnings are treated as paid).$

(3) Where earnings not of the same kind are derived from the same source and the periods in respect of which those earnings would, but for this sub-paragraph, fall to be taken into account overlap, wholly or partly, those earnings are taken into account over a period—

(a) equal to the aggregate length of those periods, and

(b) beginning with the earliest date on which any part of those earnings would otherwise be treated as paid under paragraph 6 (date on which earnings are treated as paid).

(4) In a case to which paragraph (3) applies, earnings under paragraph 8 (earnings of employed earners) are taken into account in the following order of priority—

(a) earnings normally derived from the employment,

(b) any payment to which paragraph 8(1)(b) or (c) applies,

(d) any payment to which paragraph 8(1)(d) applies.

(5) Where earnings to which paragraph 8(1)(b) to (d) (earnings of employed earners) applies are paid in respect of a part of a day, those earnings are taken into account over a period equal to a week.

(6) Where earnings to which paragraph 8(1)(i)(i) (earnings of employed earners) applies are paid in respect of or on the termination of any employment which is not part-time employment, the period over which they are taken into account is—

(a) a period of weeks equal to the number of weeks (less any fraction of a whole number) obtained by dividing the net earnings by the maximum weekly amount which, on the date on which the payment of earnings is made, is specified in section 227(1) of the Employment Rights Act 1996⁹⁶, or

(b) a period equal to the length of the specified period,

whichever is the shorter, and that period begins on the date on which the payment is treated as paid under paragraph 6 (date on which earnings are treated as paid).

(7) In this paragraph—

“part-time employment” means—subject to the provisions of heads (b) to (d) of this definition, employment in which a person is engaged, or, where their hours of work fluctuate, they are engaged on average for less than 16 hours a week, being work for which payment is made or which is done in expectation of payment,subject to head (c) of this definition, the number of hours for which an individual is engaged in work is determined—where no recognisable cycle has been established in respect of an individual’s work, by reference to the number of hours, or, where those hours are likely to fluctuate, the average of the hours, which they are expected to work in a week,where the number of hours for which they are engaged fluctuates, by reference to the average of hours worked over—if there is a recognisable cycle of work, the period of one complete cycle (including, where the cycle involves periods in which the individual does not work, those periods but disregarding any other absences),in any other case, the period of 5 weeks immediately before the date on which an application for Carer Support Payment is treated as received, or the date on which a determination without application falls to be made, or such other length of time as may, in the particular case, enable the individual’s average hours of work to be determined more accurately,where for the purpose of head (b)(ii)(aa) of this definition, an individual’s recognisable cycle of work at a school, other education establishment or other place of employment is one year and includes periods of school holidays or similar vacations during which they do not work, those periods and any other periods not forming part of such holidays or vacations during which they are not required to work is disregarded in establishing the average hours for which they are engaged in work,for the purposes of heads (a) and (b) of this definition, in determining the number of hours for which an individual is engaged in work, that number includes any time allowed to that individual by their employer for a meal or for refreshment, but only where that individual is, or expects to be, paid earnings in respect of that time,

“specified period” means a period equal to—a week or such number of weeks (less any fraction of a whole number) as comprise the period of notice which is applicable to an individual, or would have been applicable if it had not been waived, lessany part of that period during which the individual has continued to work in the employment in question or in respect of which they have received any payment in lieu of notice,

and for the purposes of this definition “period of notice” means the period of notice of termination of employment to which an individual is entitled by statute or by contract, whichever is the longer, or, if they are not entitled to such notice, the period of notice which is customary in the employment in question.

Date on which earnings are treated as paid

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Earnings to which paragraph 5 (calculation of earnings of employed earners) or 10(2) (calculation of earnings of self-employed earners) applies are treated as paid on the first day of the award week in which the payment is received.

Calculation of weekly amount of earnings

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(1) For the purposes of paragraph 5 (calculation of earnings of employed earners), subject to sub-paragraphs (2) to (4), where the period in respect of which a payment is made—

(a) does not exceed a week, the weekly amount is the amount of that payment,

(b) exceeds a week, the weekly amount is determined—

(i) where that period is a month, by multiplying the amount of that payment by 12 and dividing the product by 52,

(ii) where that period is 3 months, by multiplying the amount of the payment by 4 and dividing the product by 52,

(iii) where that period is a year, by dividing the amount of the payment by 52,

(iv) for any other period, by multiplying the amount of the payment by 7 and dividing the product by the number equal to the number of days in the period in respect of which it is made.

(2) Where a payment of earnings from a particular source is or has been paid regularly and that payment falls to be taken into account in the same award week as a payment of the same kind from the same source, the amount of those earnings to be taken into account in any one award week will not exceed the weekly amount determined under sub-paragraph (1)(a) or (b), as the case may be, of the payment which under paragraph 6 (date on which earnings are treated as paid) is treated as paid first.

(3) Where the amount of the individual’s net earnings fluctuates and has changed more than once, or an individual’s regular pattern of work is such that they do not work every week, the application of sub-paragraphs (1) and (2) may be modified so that the weekly amount of their earnings is determined by reference to their average weekly earnings—

(a) if there is a recognisable cycle of work, over the period of one complete cycle,

(b) if the individual has provided the Scottish Ministers with payslips, over the period to which the payslips relate, up to a maximum period of 26 weeks, or

(c) in any other case, over a period of 5 weeks or such other period as may, in the particular case, enable the individual’s average weekly earnings to be determined more accurately.

Earnings of employed earners

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(1) Subject to sub-paragraphs (2) and (3), “earnings”, in the case of employment as an employed earner means the remuneration or profit derived from the employment and includes—

(a) any bonus or commission,

(b) any payment in lieu of remuneration except any periodic sum paid to an individual on account of the termination of their employment by reason of redundancy,

(d) any holiday pay except where it is payable more than 4 weeks after the termination or interruption of employment,

(e) any payment by way of a retainer,

(f) any payment made by the individual’s employer in respect of expenses not wholly, exclusively and necessarily incurred in the performance of the duties of the employment, including any payment made by the employer in respect of—

(i) travelling expenses incurred by the individual between their home and place of employment,

(ii) expense incurred by the individual under arrangements made for the care of a member of their family owing to the individual’s absence from home,

(g) any award of compensation made under section 112(4) (the remedies: orders and compensation) or 117(3)(a) (enforcement of order and compensation) of the Employment Rights Act 1996 (remedies and compensation),

(h) any such sum as is referred to in section 112(3) of the 1992 Act (certain sums to be earnings for social security purposes),

(i) where—

(i) a payment of compensation is made in respect of employment which is not part-time employment and that payment is not less than the maximum weekly amount, the amount of the compensation less the deductible remainder, where that is applicable,

(ii) a payment of compensation is made in respect of employment which is part-time employment, the amount of the compensation,

(j) any remuneration paid by or on behalf of an employer to the individual in respect of a period during which the individual is—

(i) on maternity leave or paternity leave,

(ii) on adoption leave, ...

(iii) absent from work because they are ill , or

(iv) on neonatal care leave.

(2) For the purposes of sub-paragraph (1)(i)(i), the “deductible remainder”—

(a) applies in cases where dividing the amount of the compensation by the maximum weekly amount produces a whole number plus a fraction, and

(b) is equal to the difference between—

(i) the amount of the compensation, and

(ii) the product of the maximum weekly amount multiplied by the whole number.

(3) “Earnings” do not include any payment in respect of expenses—

(a) wholly, exclusively and necessarily incurred in the performance of the duties of the employment, or

(b) arising out of the individual participating as a service user.

(4) The reference in sub-paragraph (3)(b) to the individual participating as a service user is to—

(a) a person who is being consulted by or on behalf of—

(i) a body which has a statutory duty to provide services in the field of health, social care or social housing, or

(ii) a body which conducts research or undertakes monitoring for the purpose of planning or improving such services,

in their capacity as a user, potential user, carer of a user or person otherwise affected by the provision of those services,

(b) a person who is being consulted by or on behalf of—

(i) the Secretary of State or the Scottish Ministers in relation to any of their functions in the field of social security or child support under section 2 of the Employment and Training Act 1973⁹⁷, or

(ii) a body which conducts research or undertakes monitoring for the purpose of planning or improving such functions,

in their capacity as a person affected or potentially affected by the exercise of those functions or the carer of such a person, or

(5) In this paragraph—

“adoption leave” means a period of absence from work on ordinary or additional adoption leave under section 75A or 75B of the Employment Rights Act 1996⁹⁸,

“compensation” means any payment made in respect of or on the termination of employment in a case where a person has not received or received only part of a payment in lieu of notice due or which would have been due to them had they not waived their right to receive it, other than—any payment specified in sub-paragraph (1)(a) to (h),any payment specified in sub-paragraph (3)any redundancy payment within the meaning of section 135 of the Employment Rights Act 1996,any refund of contributions to which that person was entitled under an occupational pension scheme,

“maternity leave” means a period during which a person is absent from work because they are pregnant or have given birth to a child, and at the end of which they have the right to return to work either under the terms of their contract or under Part 8 of the Employment Rights Act 1996,

“neonatal care leave” means a period of absence from work on leave under section 80EF (neonatal care leave) of the Employment Rights Act 1996,

“part-time employment” has the same meaning as in paragraph 5(7) (calculation of earnings of employed earners),

“paternity leave” means a period of absence from work on leave under section 80A⁹⁹ (entitlement to paternity leave: birth) or 80B¹⁰⁰ (entitlement to paternity leave: adoption) of the Employment Rights Act 1996.

Calculation of net earnings of employed earners

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(1) For the purposes of paragraphs 2 (calculation of earnings) and 5 (calculation of earnings of employed earners) the earnings of an individual derived from employment as an employed earner to be taken into account are, subject to sub-paragraphs (2) and (3), their net earnings.

(2) There is disregarded or deducted as appropriate from an individual’s net earnings—

(a) any sum, where applicable, specified in paragraph 14 (sums to be disregarded in the calculation of earnings), and

(b) any care charges to which paragraph 15 (care charges to be deducted in the calculation of earnings) applies up to a maximum deduction, in respect of such care charges incurred by any individual, of 50% of their net earnings less those sums, if any, specified in paragraph 14 which are disregarded.

(3) For the purposes of sub-paragraph (1) net earnings are calculated by taking into account the gross earnings of the individual from that employment, less—

(a) any amount deducted by way of—

(i) income tax,

(ii) primary Class 1 contributions under the 1992 Act, and

(b) one half of any sum paid by the individual in respect of a pay period by way of a contribution towards an occupational or personal pension scheme.

Calculation of earnings of self-employed earners

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(1) Except where paragraph (2) applies, where an individual’s earnings consist of earnings from employment as a self-employed earner the weekly amount of their earnings are determined by reference to their average weekly earnings from that employment—

(a) over a period of one year, or

(b) where the individual has been engaged in that employment for less than a year or there has been a change which is likely to affect their normal pattern of earnings, over such other period as may, in any particular case, enable the weekly amount of their earnings to be determined more accurately.

(2) Where the individual’s earnings—

(a) consist of royalties or other sums paid as a consideration for the use of, or the right to use, any copyright, design, patent or trade mark, and

(b) the individual is the first owner of the copyright, design, patent or trade mark,

those earnings are taken into account over a period equal to such number of weeks as is equal to the number (less any fraction of a whole number) calculated in accordance with the formula—

$$ST+U$where—S is the earnings,T is the relevant earnings limit plus one penny, andU is the total of the sums which would fall to be disregarded or deducted as appropriate under paragraph 12(2) (calculation of net profit of self-employed earners).$

(3) The period mentioned in sub-paragraph (2) begins on the date on which the payment is treated as paid under paragraph 6 (date on which earnings are treated as paid).

Earnings of self-employed earners

11

“Earnings”, in the case of employment as a self-employed earner, means the net profits of the employment and includes any allowance paid under section 2 of the Employment and Training Act 1973 or section 2 of the Enterprise and New Towns (Scotland) Act 1990¹⁰¹ to the individual for the purpose of assisting them in carrying on their business.

Calculation of net profit of self-employed earners

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(1) For the purposes of paragraphs 2 (calculation of earnings) and 10 (calculation of earnings of self-employed earners), the earnings of an individual to be taken into account are, in the case of a self-employed earner—

(a) who is engaged in employment on their own account, the net profit derived from that employment,

(b) whose employment is carried on in partnership or is that of a share fisherman, their share of the net profit derived from that employment less—

(i) an amount in respect of income tax and social security contributions payable under the 1992 Act calculated in accordance with paragraph 13 (deduction of tax and contributions for self-employed earners), and

(ii) one half of any premium paid in the period that is relevant under paragraph 10 in respect of a retirement annuity contract or a personal pension scheme,

(i) is ordinarily employed in the fishing industry otherwise than under a contract of service, as a master or member of the crew of any fishing boat manned by more than one person, and is remunerated in respect of that employment in whole or in part by a share of profits or gross earnings of the fishing boat, or

(ii) has ordinarily been so employed, but who by reason of age or infirmity permanently ceases to be so employed and becomes ordinarily engaged in employment ashore in Great Britain, otherwise than under a contract of service, performing any services ancillary to or in connection with a fishing boat and is remunerated in respect of that employment in whole or in part by a share of the profits or gross earnings of that boat and has not ceased to be ordinarily engaged in that employment.

(2) There is to be disregarded or deducted as appropriate from an individual’s net profit—

(a) any sum, where applicable, specified in paragraph 14 (sums to be disregarded in the calculation of earnings), and

(b) any care charge to which paragraph 15 (care charges to be deducted in the calculation of earnings) applies up to a maximum deduction, in respect of such care charges incurred by any individual, of 50% of their net profit less those sums, if any, specified in paragraph 14 which are disregarded.

(3) For the purposes of sub-paragraph (1)(a), the net profit of the employment is, except where sub-paragraph (9) applies, calculated by taking into account the earnings of the employment over the period determined under paragraph 10 (calculation of earnings of self-employed earners), less—

(a) subject to sub-paragraphs (5) to (7), any expenses wholly and exclusively paid in that period for the purposes of that employment,

(b) an amount in respect of—

(i) income tax, and

(ii) social security contributions payable under the 1992 Act, calculated in accordance with paragraph 13 (deduction of tax and contributions for self-employed earners), and

(c) one half of any premium paid in the period that is relevant under paragraph 10 (calculation of earnings of self-employed earners) in respect of a retirement annuity contract or a personal pension.

(4) For the purposes of sub-paragraph (1)(b), the net profit of the employment is calculated by taking into account the earnings of the employment over the period determined under paragraph 10 less, subject to sub-paragraphs (5) to (7), any expenses wholly and exclusively paid in that period for the purposes of that employment.

(5) Subject to paragraph (6), no deduction is to be made under paragraph (3)(a) or (4) in respect of—

(a) any capital expenditure,

(b) the depreciation of any capital asset,

(d) any loss incurred before the beginning of the period determined under paragraph 10 (calculation of earnings of self-employed earners),

(e) the repayment of capital on any loan taken out for the purposes of the employment,

(f) any expenses incurred in providing business entertainment,

(g) where the individual provides accommodation to another person in the dwelling the individual occupies as their home, any expenses paid by the individual in providing the accommodation to that person.

(6) A deduction is made under sub-paragraph (3)(a) or (4) in respect of the repayment of capital on any loan used for—

(a) the replacement in the course of business of equipment or machinery, and

(b) the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair.

(7) A deduction is not made in respect of any expenses under sub-paragraph (3)(a) or (4) where the Scottish Ministers are not satisfied that the expenses have been incurred or, having regard to the nature of the expense and its amount, that it has been reasonably incurred.

(8) For the avoidance of doubt—

(a) a deduction is not made under sub-paragraph (3)(a) or (4) in respect of any sum unless it has been expended for the purposes of the business,

(b) a deduction is made under sub-paragraph (3)(a) or (4) in respect of—

(i) the excess of any VAT paid over VAT received in the period determined under paragraph 10 (calculation of earnings of self-employed earners),

(ii) any income expended in the repair of an existing asset except to the extent that any sum is payable under an insurance policy for its repair,

(iii) any payment of interest on a loan taken out for the purposes of the employment.

(9) Where an individual is engaged in employment as a child minder the net profit of the employment is one-third of the earnings of that employment, less—

(a) an amount in respect of—

(i) income tax, and

(ii) social security contributions payable under the 1992 Act, calculated in accordance with paragraph 13 (deduction of tax and contributions for self-employed earners), and

(b) one half of any premiums paid in respect of a retirement annuity or personal pension scheme.

(10) Notwithstanding paragraph 10 (calculation of earnings for self-employed earners) and sub-paragraphs (1) to (5) of this paragraph, the Scottish Ministers may assess any item of an individual’s earnings or expenditure over a period other than that determined under paragraph 10 as may, in the particular case, enable the weekly amount of that item of earnings or expenditure to be determined more accurately.

Deduction of tax and contributions for self-employed earners

13

(1) The amount to be deducted in respect of income tax under paragraph 12(1)(b)(i), (3)(b)(i) or (9)(a)(i) (calculation of net profit for self-employed earners) is calculated on the basis of the amount of chargeable income and as if that income were assessable to income tax at the basic rate, or in the case of a Scottish taxpayer, the Scottish basic rate, of tax less only the personal reliefs to which the individual is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007¹⁰² and as are appropriate to their circumstances; but, if the period determined under paragraph 10 (calculation of earnings of self-employed earners) is less than a year, the earnings to which the basic rate, or the Scottish basic rate, of tax is to be applied and the amount of the personal reliefs deductible under this sub-paragraph is calculated on a pro rata basis.

(2) The amount to be deducted in respect of social security contributions under paragraph 12(1)(b)(i), (3)(b)(ii) or (9)(a)(ii) is the total of—

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