Explanatory note

These Regulations amend the Working Tax Credit (Payment by Employers) Regulations 2002 (S.I. 2002/2172) (“the Payment by Employers Regulations”) and the Tax Credits (Payments by the Board) Regulations 2002 (S.I. 2002/2173) (“the Payments by the Board Regulations”). The principal effect of the amendments is that from 7th November 2005 all new claimants of working tax credit, and from 1st April 2006 all existing claimants of working tax credit, will be paid directly by the Commissioners for Her Majesty’s Revenue and Customs (“the Commissioners”) rather than via employers. The regulations also contain amendments to terminology in consequence of the transfer of the functions of the Board of Inland Revenue to Her Majesty’s Revenue and Customs by the Commissioners for Revenue and Customs Act 2005 (c. 11) (“the 2005 Act”).

Regulation 1 provides for citation, commencement, effect and interpretation of these Regulations.

Regulation 2 introduces the amendments to the Payment by Employers Regulations.

Regulation 3 amends definitions in the Payment by Employers Regulations.

Regulation 4 amends the Payment by Employers Regulations to provide that employers must give employees written notification of the cessation of payment of working tax credit by employers and the commencement of payment of working tax credit by the Commissioners of Her Majesty’s Revenue and Customs.

Regulation 5 makes consequential amendments.

Regulation 6 amends terminology so that it accords with the 2005 Act.

Regulation 7 contains the amendments to the Payments by the Board Regulations, and changes their citation to the “Tax Credits (Payment by the Commissioners) Regulations 2002” in consequence of the abolition of the Board of Inland Revenue.

Regulation 8 contains savings.

Regulation 9 contains revocations.

A regulatory impact assessment is available on HM Revenue & Customs website (www.hmrc.gov.uk/ria/index.htm).