Decision Makers Guide - DMG22039

Earnings-calculation of net earnings: Meaning of gross earnings and net earnings: Allowable expenses incurred by the employee

When expenses occur infrequently over a year
1) total them and
2) change the amount to a

• weekly figure (by dividing by 52) for weekly paid earners

• fortnightly figure (by dividing by 26) for fortnightly paid earners

• monthly figure (by dividing by 12) for monthly paid earners

• 4 weekly figure (by dividing by 13) for 4 weekly paid earners

Deal with any expenses incurred in the early stages of employment in this way.

Example

A bricklayer buys his own trowels as his employer does not provide them. In the last year the applicant has bought two trowels at £13 each.

The amount allowed as an expense each week is 50 pence (that is £26 divided by 52)