Regulation 19: Calculation of disposable income, The Legal Aid (Financial Resources and Payment for Services) (Legal Persons) Regulations 2013

Subject to paragraphs (3) and (4), the Director must calculate the disposable income of the legal person by whichever method the Director considers to be both equitable and practicable, having regard to—

the amount the legal person has earned or will earn, including any profits which have accrued or will accrue to the legal person;

the amount of any entitlements that have accrued, or will accrue, to the legal person; and

any other sums from any source which the legal person has received, or is likely to receive,

in respect of the period of calculation (referred to in regulation 14(2) and (3)) but in calculating such income the Director may have regard to the average income of the legal person during such other period as the Director considers appropriate.

In calculating any profits under paragraph (1)(a)—

the Director may have regard to the profits of the last accounting period for which accounts have been prepared; and

there must be deducted all sums necessarily expended to earn those profits, but no deduction may be made in respect of the living expenses of any person with a legal or beneficial interest in the legal person or any member of their family or household, except in so far as such member of their family or household is wholly or mainly employed by the legal person and such living expenses form part of that member's remuneration.

Subject to paragraph (4), in calculating the disposable income of the legal person, any income tax, corporation tax and national insurance contribution paid on that income in respect of the period of calculation must be deducted.

Where an application is made for legal representation, in calculating the disposable income of the legal person any income tax, corporation tax and national insurance contribution payable on that income in respect of the period of calculation must be deducted.

For the purposes of this regulation, “national insurance contributions” means contributions under Part 1 of the Social Security Contributions and Benefits Act 1992 .

Regulation 19: Calculation of disposable income

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