Regulation 5 Amendments to the Childcare Payments Regulations 2015

For regulation 7 (late declarations of eligibility) substitute—

“7.

(1)

If a person makes a declaration of eligibility during the entitlement period for which it is made (a “late declaration of eligibility”), HMRC may not determine whether the declaration is valid for the purposes of the Act until—

(a)

7 days after the declaration was made; or

(b)

such earlier time as HMRC allow.

(2)

If a person (“P”) makes a late declaration of eligibility P may make qualifying payments into the childcare account only for the remainder of the entitlement period after the day on which HMRC determine the declaration is valid.

(3)

Where a late declaration of eligibility is made by P in circumstances where either—

(a)

section 30(2) (termination of tax credit awards) applies; or

(b)

P is subject to an assessment period under regulation 21 of the Universal Credit Regulations 2013^f1 (assessment periods) and P’s assessment period overlaps with the entitlement period;

the relevant maximum for the entitlement period is reduced to an amount determined by the formula—

$$X\times A÷B$$

where—

• X is, in the case of a disabled child, £4000, or in the case of any other child, £2000;

• A is the number of days remaining in the entitlement period after the day on which HMRC determine that the declaration is valid; and

• B is the total number of days in the entitlement period.

(4)

Paragraph (3) applies with the modification in subparagraph (5) to a resident of another EEA state who is in paid work in the United Kingdom if, at the date of the declaration, that person or that person’s partner either—

(i)

is, under the law of that state, being paid in respect of a relevant assessment period a credit (an “equivalent credit”) which is substantially similar in character to universal credit; or

(ii)

is, under the law of that state, in receipt of a credit (“an equivalent credit”) which is substantially similar in character to an award of tax credit; or

(iii)

has made a claim that would result in an equivalent credit becoming payable to that person or that person’s partner.

(5)

The modification in this paragraph is a reference to universal credit and tax credit includes a reference to an equivalent credit.”.