Decision Makers Guide - DMG38206

Calculation of deduction for notional SS contributions: Earnings below SEE level

To establish whether the chargeable income is less than the SEE level
1) if the assessment period is a year, compare it to the amount in Appendix 2 or
2) if the assessment period is less than a year, compare it to a pro rata SEE amount.

Example

Application made on 13.9.98, assessment period 1.3.98 to 31.8.98 (184 days), chargeable income £1392.46, and SEE level for 1998/99 is £3,590.

The figure to be compared with the chargeable income is

£3,590 x 184/365 = £1809.75 (rounded down)

Because the chargeable income is less than £1809.75 no deduction is made.