Office of Public Sector Information
(This note is not part of these Regulations)
These Regulations amend the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (“the Entitlement Regulations”), the Tax Credits (Definition and Calculation of Income) Regulations 2002 (“the Income Regulations”), the Child Tax Credit Regulations 2002 (“the Child Regulations”) and the Tax Credits (Claims and Notifications) Regulations 2002 (“the Claims Regulations”).
Regulation 2 amends regulation 14 of the Entitlement Regulations. Paragraph (2)(a)(ii) is revoked because Schedule 9A to the Children Act 1989 was amended by paragraph 18 of Schedule 2 to the Childcare Act 2006 so that it no longer applies to England. This means that care provided in an appropriate children’s home, a care home, as a patient in a hospital and in a residential family centre will no longer be eligible childcare for working tax credit. A new paragraph (2)(a)(iia) is added so that parents who use child care provided in England by a person registered under Part 3 of the Childcare Act 2006 are eligible for the child care element of working tax credit. Paragraph (2)(a)(iii) replaces the previous paragraph (2)(a)(iii) with a reference to care provided by or under the direction of the proprietor of a school on the school premises, subject to the limitations in new paragraph (2B). This is intended to clarify the care provided by schools that is eligible childcare for working tax credit. The reference to the proprietor of a school reflects the terms of the exemptions for schools from the registration requirements under Part 3 of the Childcare Act 2006. Paragraph (2)(a)(viii) is revoked in consequence of the revocation of the Childcare (Voluntary Registration) Regulations 2007 (S.I. 2007/730) by regulation 3 of the Childcare (General Childcare Register) Regulations 2008 (S.I. 2008/975).
Regulation 2 also inserts new paragraphs (2A) and (2B) in regulation 14. New paragraph (2A) defines “proprietor”, “school” and “school premises” for the purpose of the new paragraph (2)(a)(iii). New paragraph (2B) limits the care that is eligible for working tax credit under paragraph (2)(a)(iii). It excludes care during school hours for a child who has reached compulsory school age. This reflects the definition of “childcare” in section 18(3) of the Childcare Act 2006. The new paragraph (2B) also excludes care provided in breach of a requirement to register under Part 3 of the Childcare Act 2006.
Regulation 3 introduces the amendments to the Income Regulations.
Regulation 4 amends Table 1 in regulation 4(4) of the Income Regulations. The Table contains a list of payments and benefits which are disregarded in the calculation of employment income. Six items are added to the list: a payment made under the City Strategy Pathfinder Pilots; a payment made by way of the Better Off In-Work Credit; any In-Work Emergency Discretion Fund payment made to a person pursuant to arrangements made by the Secretary of State; any Up-front Childcare Fund payment made to a person pursuant to arrangements made by the Secretary of State; any In-Work Emergency Fund payment made to a person pursuant to arrangements made by the Department of Economic Development under section 1 of the Employment and Training Act (Northern Ireland) 1950; and PAYE settlement agreements made under Part 6 of the Income Tax (PAYE) Regulations 2003 (S.I. 2003/2682).
Regulation 5 amends regulation of 8 of the Income Regulations to reflect the introduction of regulation 42 of the Education (Student Support) Regulations 2008 (S.I. 2008/529), regulation 44 of the Education (Student Support) (No. 2) Regulations 2008 (S.I. 2008/1582) and regulation 26 of the Assembly Learning Grant and Loans (Higher Education) (Wales) Regulations 2008 (S.I. 2008/1273 (W.130)).
Regulation 6 introduces the amendments to the Child Regulations.
Regulation 7 amends regulation 2 by changing existing defined terms and adding new defined terms. In order to align child tax credit with child benefit the definition of “recognised educational establishment” is revoked.
Regulation 8 amends regulation 3 to change the circumstances in which a person is or is not responsible for a child or qualifying young person.
Regulation 9 amends regulation 4 to provide for a period during which a person who attains the age of sixteen is a qualifying young person.
Regulation 10 amends regulation 5 to change the maximum age and prescribed conditions for a qualifying young person.
Regulation 11 introduces the amendments to the Claims Regulations.
Regulation 12 amends regulation 5 to change the manner in which a claim for a tax credit is to be made.
Regulation 13 amends regulation 13 to change the circumstances in which claims made by one member of a couple are to be treated as also made by the other member of the couple.
An Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.
The Tax Credits (Miscellaneous Amendments) (No. 2) Regulations 2008