I assume you mean Schedule 3 (not 4). As far as your question goes I don’t see the problem. Sx3 will aply the normal earned income disregard (i.e. £5/10/25, etc) to any income that you have set up as earned income. I assume you have the EI code for this? The number of hours worked that you enter has nothing to do with whether the standard earned income disregard is applied.
As far as applying reg 4(6) goes I don’t see a problem there either. If someone starts getting SSP you can just reinput this as earned income with the hours worked below 16. It won’t let you input zero hours unfortunately but if you enter 1.00 (for example) this would work fine. The standard earned income disregard will be applied and the 30hr disregard will not be applied unless the WTC30+ code is present. This would be correct.
What did you think to my earlier suggestion about the new capital codes?
