OpenLegislation

The Tax Credits, Child Benefit and Childcare Payments (Miscellaneous Amendments) Regulations 2019

S.I. 2019/364 · Made 25 February 2019

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

This Statutory Instrument has been made in part as a consequence of a defect in S.I. 2018/1130 and is being issued free of charge to all known recipients of that Statutory Instrument.

Tax Credits

Social Security

Childcare

Payment Scheme

Made 25th February 2019

Laid before Parliament 27th February 2019

Coming into force 21st March 2019

The Treasury, in exercise of the powers conferred by sections 3(7), 7(8) and (9), 9, 10, 11, 12(4)(b), 43, 54(1) and 65(1), (7) and (9) of the Tax Credits Act 2002f1, sections 146(3) and 175(1), (1A), (3) and (4) of the Social Security Contributions and Benefits Act 1992f2, and sections 142(3) and 171(1), (3), (4) and (10) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992f3, and now exercisable by themf4, make the following Regulations (apart from regulations 5, 6, 8, 10 and 12) and the Commissioners for Her Majesty’s Revenue and Customs, in exercise of the powers conferred by sections 4, 6, 21, 50(1) and (2)(b), 54(2), 58 and 65(2), (7) and (9) of the Tax Credits Act 2002, sections 5(1)(k), (2)(a) and (g), and 189(6) of the Social Security Administration Act 1992f5 and sections 5(1)(l), (2)(a) and (g), and 165(6) of the Social Security Administration (Northern Ireland) Act 1992f6, and now exercisable by themf7, and sections 2(3)(a) and 69(3) and (4) of the Childcare Payments Act 2014f8, make regulations 1, 5, 6, 8, 10 and 12.

Annotations to the whole text

Footnotes

f1

2002 c. 21; sections 4 and 11 were amended by paragraph 145 and, in the case of section 4, paragraph 146 of Schedule 24 to the Civil Partnership Act 2004 (c. 33). Section 9(3B) was inserted by section 13 of the Welfare Reform and Work Act 2016 (c.7). Section 67 defines “prescribed” as meaning “prescribed by regulations”. Although section 67 has been amended, the amendment is not relevant for the purposes of this instrument.

f2

1992 c. 4; section 146 was substituted by section 56(1) of the Tax Credits Act 2002 and subsection (3) of section 146 was amended by paragraph 3(b) of Part 1 of Schedule 1 to the Child Benefit Act 2005 (c. 6). Subsection (1A) of section 175 was inserted by, and subsection (4) of section 175 was amended by, paragraph 29 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), and subsection (1A) was amended by Schedule 6 to the Tax Credits Act 2002. Section 147(1) defines “prescribed” as meaning “prescribed by regulations”.

f3

1992 c. 7; section 142 was substituted by section 56(2) of the Tax Credits Act 2002 and subsection (3) of section 142 was amended by paragraph 39(3) of Part 2 of Schedule 1 to the Child Benefit Act 2005. Section 143(1) defines “prescribed” as meaning “prescribed by regulations”.

f4

The powers of the Secretary of State under section 146(3) of the Social Security Contributions and Benefits Act 1992 were transferred to the Treasury by section 49(1)(b) of the Tax Credits Act 2002. The powers of the Department for Social Development in Northern Ireland under section 142(3) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) were transferred to the Treasury by section 49(2)(b) of the Tax Credits Act 2002.

f5

1992 c. 5; section 189(6) was amended by paragraph 1 of Schedule 1 to S.I. 2013/252. There are other amending instruments but none is relevant. Section 191, as amended by paragraph 10 of Schedule 5 to the Welfare Reform Act 2007 (c. 5), defines “prescribed” as meaning “prescribed by regulations”.

f6

1992 c. 8; section 165(6) was amended by paragraph 1 of Schedule 7 to S.I. 1998/1506. There are other amending instruments but none is relevant. Section 161(1), amended by paragraph 5 of Schedule 5 to the Welfare Reform Act (Northern Ireland) 2007 (c. 2), defines “prescribed” as meaning “prescribed by regulations”.

f7

The powers under the Social Security Administration Act 1992 and the Social Security Administration (Northern Ireland) Act 1992 for which the Secretary of State and the Northern Ireland Department were responsible were transferred to the Commissioners of Inland Revenue by section 50 of the Tax Credits Act 2002. These powers, and the payment and management of tax credits, were then transferred from the Commissioners of Inland Revenue to the Commissioners for Her Majesty’s Revenue and Customs by section 5(1) of the Commissioners for Revenue and Customs Act (c. 11) (“CRCA”). Paragraph (88) of Schedule 4 to CRCA amends section 2 of the Tax Credits Act 2002 so that the Commissioners for Her Majesty’s Revenue and Customs have the power to make these Regulations. Section 50(1) of CRCA provides that, in so far as is appropriate in consequence of section 5 of CRCA, a reference, howsoever expressed, to the Commissioners of Inland Revenue is to be taken as a reference to the Commissioners for Her Majesty’s Revenue and Customs.

f8

2014 c. 28.

Contents

  1. 1Citation and commencement
  2. 2Amendment of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002
  3. 3Amendment of the Tax Credits (Definition and Calculation of Income) Regulations 2002
  4. 4Amendment of the Child Tax Credit Regulations 2002
  5. 5Amendment of the Tax Credits (Claims and Notifications) Regulations 2002
  6. 6Amendment of the Tax Credits (Administrative Arrangements) Regulations 2002
  7. 7Amendment of the Tax Credits (Residence) Regulations 2003
  8. 8Amendment of the Tax Credits (Official Error) Regulations 2003
  9. 9Amendment of the Tax Credits (Polygamous Marriages) Regulations 2003
  10. 10Amendment of the Child Benefit and Guardian’s Allowance (Administration) Regulations 2003
  11. 11Amendment of the Child Benefit (General) Regulations 2006
  12. 12Amendment of the Childcare Payments Regulations 2015
  13. Signature
  14. Explanatory note

1Citation and commencement

These Regulations may be cited as the Tax Credits, Child Benefit and Childcare Payments (Miscellaneous Amendments) Regulations 2019 and come into force on 21st March 2019.

2Amendment of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002

(1)

The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002f1 are amended as follows.

(2)

In regulation 2(1) (interpretation), in the definition of “training allowance”, in paragraph (a), for “Employment and Learning” substitute “Communities or the Department for the Economyf2”.

(3)

In regulation 4(2A)(b) (entitlement to basic element)f3, for “Social Development” substitute “Communities”.

(4)

In regulation 14f4—

(a)

in paragraph (1B)—

(i)

omit the “and” at the end of sub-paragraph (c), and

(ii)

after sub-paragraph (d) insert—

“; and

(e)

“Ministry of Defence personnel” means Her Majesty’s forces, which has the same meaning as in the Armed Forces Act 2006f5, and their families, and civil servants employed by the Ministry of Defence and their families.”, and

(b)

in paragraph (2)—

(i)

in sub-paragraph (c)(iii), for “an Education and Library Board” substitute “the Education Authority”, and

(ii)

for sub-paragraph (d), but not the “or”, substitute—

“(d)

anywhere outside the United Kingdom—

(i)

by a child care provider, which is inspected by a person whose functions include regulating the provision of child care in accordance with the statutory requirements of the Department for Education, where a claim is made by Ministry of Defence personnel; or

(ii)

in any other case, where care is provided within an EEA state or Switzerland, by a child care provider which is approved, regulated or accredited under the legislation of the relevant state, by a person whose functions include regulating the provision of education or child care;”.

3Amendment of the Tax Credits (Definition and Calculation of Income) Regulations 2002

(1)

The Tax Credits (Definition and Calculation of Income) Regulations 2002f1 are amended as follows.

(2)

In regulation 4 (employment income)f2, in Table 1 (payments and benefits disregarded in the calculation of employment income), omit entry 16A and entry 16B.

(3)

In regulation 6 (trading income)f3, after “disregarding” insert “the relevant benefit amount in section 23E (tax treatment of relevant benefits)f4 and”.

(4)

In regulation 10(2) (investment income)f5, at the end of sub-paragraph (e), but before the full stop, insert—

“; and

(f)

any interest on a payment made under, or in connection with, the Windrush Compensation Schemef6 administered by the Home Office, for the period beginning on the date on which the payment is made and ending 52 weeks after that date”.

(5)

In regulation 19 (general disregards in the calculation of income), in Table 6 (sums disregarded in the calculation of income), after entry 22f7 insert—

“

23. Any discretionary payment made pursuant to the Discretionary Support Regulations (Northern Ireland) 2016f8.
24. Any payment made under, or in connection with, the Windrush Compensation Scheme administered by the Home Office.

”.

4Amendment of the Child Tax Credit Regulations 2002

(1)

The Child Tax Credit Regulations 2002f1 are amended as follows.

(2)

In regulation 2(1) (interpretation)f2, in the definition of “qualifying body”, in paragraph (c), for the words from “Employment and Learning” to “1986” substitute “Communities, the Department for the Economy or the Education Authority”.

(3)

In regulation 14 (continuation of certain exceptions)f3—

(a)

in paragraph (2)(d), omit “its reference to”,

(b)

in paragraph (4)(d), omit “its reference to”, and

(c)

in paragraph (5)(d), for “the reference to regulation 10 in paragraph (2)” substitute “regulation 10”.

5Amendment of the Tax Credits (Claims and Notifications) Regulations 2002

(1)

The Tax Credits (Claims and Notifications) Regulations 2002f1 are amended as follows.

(2)

In regulation 2 (interpretation), in the definition of “relevant authority”, in paragraph (b), for “Social Development” substitute “Communities”.

6Amendment of the Tax Credits (Administrative Arrangements) Regulations 2002

(1)

The Tax Credits (Administrative Arrangements) Regulations 2002f1 are amended as follows.

(2)

In regulation 2 (interpretation), in the definition of “relevant authority” in paragraph (b), for “Social Development” substitute “Communities”.

(3)

In regulation 5 (recording, verification and holding, and forwarding, of claims etc. received by relevant authorities)f2—

(a)

in paragraph (3), in sub-paragraph (b)(ii), for “Social Development” substitute “Communities”, and

(b)

in paragraph (6), in sub-paragraph (a)(ii), for “Social Development” substitute “Communities”.

7Amendment of the Tax Credits (Residence) Regulations 2003

(1)

The Tax Credits (Residence) Regulations 2003f1 are amended as follows.

(2)

In regulation 3 (circumstances in which a person is treated as not being in the United Kingdom)f2—

(a)

in paragraph (4), for “Council Directive No 2004/38/EC” substitute “the Immigration (European Economic Area) Regulations 2016”f3,

(b)

for paragraph (5)(b)(ii) substitute—

“(ii)

has a right to reside under paragraph (1) of regulation 16 of the Immigration (European Economic Area) Regulations 2016, but only in a case where the right exists under that regulation because the person satisfies the criteria in paragraph (5) of that regulation.”,

(c)

after paragraph (5) insert—

“(5A)

Paragraph (5)(b)(ii) does not apply to a person who is lawfully working in the United Kingdom and is a national of a State with which the European Union has concluded an agreement under Article 217 of the Treaty on the Functioning of the European Unionf4 providing, in the field of social security, for the equal treatment of workers who are nationals of the signatory State and their families.”,

(d)

in paragraph (7)—

(i)

in sub-paragraph (b), for “Council Directive 2004/38/EC (rights of citizens of the European Union and their family members to move and reside freely within the territory of the Member States)” substitute “regulation 4(1)(a) or (b) of the Immigration (European Economic Area) Regulations 2016”,

(ii)

in sub-paragraph (c), for “Article 7(3) of Council Directive 2004/38/EC” substitute “regulation 6(2) or (4) of the Immigration (European Economic Area) Regulations 2016”, and

(iii)

in sub-paragraph (i), for “Council Directive 2004/38/EC” substitute “the Immigration (European Economic Area) Regulations 2016”, and

(e)

in paragraph (8), for “Article 2 of Council Directive 2004/38/EC” substitute “regulation 7 of the Immigration (European Economic Area) Regulations 2016”.

8Amendment of the Tax Credits (Official Error) Regulations 2003

(1)

The Tax Credits (Official Error) Regulations 2003f1 are amended as follows.

(2)

In regulation 2(1) (interpretation), in the definition of “official error”, in paragraph (c), for “Social Development” substitute “Communities”.

9Amendment of the Tax Credits (Polygamous Marriages) Regulations 2003

(1)

The Tax Credits (Polygamous Marriages) Regulations 2003f1 are amended as follows.

(2)

In regulation 25A (which modifies regulation 9 of the Child Tax Credit Regulations 2002)f2—

(a)

for paragraph (a) substitute—

“(a)

in paragraphs (1), (3) and (5) for “either or both” (in each place they appear) substitute “any or all”;”, and

(b)

omit paragraph (b).

10Amendment of the Child Benefit and Guardian’s Allowance (Administration) Regulations 2003

(1)

The Child Benefit and Guardian’s Allowance (Administration) Regulations 2003f1 are amended as follows.

(2)

In regulation 9 (withdrawing claims)f2—

(a)

for paragraph (1) substitute—

“(1)

A person who has made a claim for child benefit or guardian’s allowance may withdraw it by giving notice—

(a)

in writing to the Board,

(b)

by telephone to the Board, or

(c)

in such other manner as the Board may accept as sufficient in the circumstances of the particular case.”, and

(b)

in paragraph (2), for “(1)” substitute “(1)(a)”.

11Amendment of the Child Benefit (General) Regulations 2006

(1)

The Child Benefit (General) Regulations 2006f1 are amended as follows.

(2)

In regulation 1(3) (citation, commencement and interpretation)f2, in the definition of “arrangements made by the Government”, in paragraph (c), for “Employment and Learning” substitute “Communities or the Department for the Economy”.

(3)

In regulation 5(4) (extension period: 16 and 17 year olds) in sub-paragraph (c), for the words from “Employment and Learning” to “1986” substitute “Communities, the Department for the Economy or the Education Authority;”.

(4)

In regulation 23 (circumstances in which person treated as not being in Great Britain)f3—

(a)

for paragraph (4)(b) substitute—

“(b)

has a right to reside by virtue of paragraph (1) of regulation 16 of the Immigration (European Economic Area) Regulations 2016, but only in a case where a right exists under that regulation because that person satisfies the criteria in paragraph (5) of that regulation.”,

(b)

after paragraph (4) insert—

“(4A)

Paragraph (4)(b) does not apply to a person who is lawfully working in Great Britain and is a national of a State with which the European Union has concluded an agreement under Article 217 of the Treaty on the Functioning of the European Union providing, in the field of social security, for the equal treatment of workers who are nationals of the signatory State and their families.”,

(c)

in paragraph (6)—

(i)

in sub-paragraph (b), for “Council Directive 2004/38/EC (rights of citizens of the European Union and their family members to move and reside freely within the territory of the Member States)” substitute “regulation 4(1)(a) or (b) of the Immigration (European Economic Area) Regulations 2016”,

(ii)

in sub-paragraph (c), for “Article 7(3) of Council Directive 2004/38/EC” substitute “regulation 6(2) or (4) of the Immigration (European Economic Area) Regulations 2016”, and

(iii)

in sub-paragraph (i), for “Council Directive 2004/38/EC” substitute “the Immigration (European Economic Area) Regulations 2016”, and

(d)

in paragraph (7), for “Article 2 of Council Directive 2004/38/EC” substitute “regulation 7 of the Immigration (European Economic Area) Regulations 2016”.

(5)

In regulation 27 (circumstances in which person treated as not being in Northern Ireland)f4—

(a)

for paragraph (3)(b) substitute—

“(b)

has a right to reside in the United Kingdom by virtue of paragraph (1) of regulation 16 of the Immigration (European Economic Area) Regulations 2016, but only in a case where a right exists under that regulation because that person satisfies the criteria in paragraph (5) of that regulation.”,

(b)

after paragraph (3) insert—

“(3A)

Paragraph (3)(b) does not apply to a person who is lawfully working in Northern Ireland and is a national of a State with which the European Union has concluded an agreement under Article 217 of the Treaty on the Functioning of the European Union providing, in the field of social security, for the equal treatment of workers who are nationals of the signatory State and their families.”,

(c)

in paragraph (5)—

(i)

in sub-paragraph (b), for “Council Directive 2004/38/EC” substitute “regulation 4(1)(a) or (b) of the Immigration (European Economic Area) Regulations 2016”,

(ii)

in sub-paragraph (c), for “Article 7(3) of Council Directive 2004/38/EC” substitute “regulation 6(2) or (4) of the Immigration (European Economic Area) Regulations 2016”, and

(iii)

in sub-paragraph (i), for “Council Directive 2004/38/EC” substitute “the Immigration (European Economic Area) Regulations 2016”, and

(d)

in paragraph (6), for “Article 2 of Council Directive 2004/38/EC” substitute “regulation 7 of the Immigration (European Economic Area) Regulations 2016”.

12Amendment of the Childcare Payments Regulations 2015

(1)

The Childcare Payments Regulations 2015f1 are amended as follows.

(2)

In regulation 3 (qualifying childcare: registered or approved childcare)—

(a)

for paragraph (6) substitute—

“(6)

Care provided for a child outside the United Kingdom—

(a)

where the care is provided by a Ministry of Defence approved childcare provider which is inspected by a person whose functions include regulating the provision of childcare in accordance with the statutory requirements of the Department for Education, or

(b)

in any other case, where care is provided within an EEA state by a childcare provider which is approved, regulated or accredited under the legislation of the relevant state, by a person whose functions include regulating the provision of education or childcare.”, and

(b)

in paragraph (10) at the appropriate place insert—

  • ““Ministry of Defence approved childcare provider” means a childcare provider, outside the United Kingdom, approved by the Ministry of Defence for use by Her Majesty’s forces, which has the same meaning as in the Armed Forces Act 2006f2, and their families, and civil servants employed by the Ministry of Defence and their families;”.

Signature

Mike Freer

Craig Whittaker

Two of the Lords Commissioners of Her Majesty’s Treasury

25th February 2019

Melissa Tatton

Justin Holliday

Two of the Commissioners for Her Majesty’s Revenue and Customs

25th February 2019

Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (S.I. 2002/2005) (“the Entitlement Regulations”), the Tax Credits (Definition and Calculation of Income) Regulations 2002 (S.I. 2002/2006) (“the Income Regulations”), the Child Tax Credit Regulations 2002 (S.I. 2002/2007) (“the Child Tax Credit Regulations”), the Tax Credits (Claims and Notifications) Regulations 2002 (S.I. 2002/2014), the Tax Credits Regulations 2002 (S.I. 2002/3036), the Tax Credits (Residence) Regulations 2003 (S.I. 2003/654) (“the Residence Regulations”), the Tax Credits (Official Error) Regulations 2003 (S.I. 2003/692), the Tax Credits (Polygamous Marriages) Regulations 2003 (S.I. 2003/742) (“the Polygamous Marriages Regulations”), the Child Benefit and Guardian’s Allowance (Administration) Regulations 2003 (S.I. 2003/492) (“the Child Benefit and Guardian’s Allowance Regulations”), the Child Benefit (General) Regulations 2006 (S.I. 2006/223) (“the Child Benefit Regulations”) and the Childcare Payments Regulations 2015 (S.I. 2015/522) (“the Childcare Regulations”).

Regulation 1 provides for citation and commencement.

The following regulations make amendments to replace out of date references to Northern Ireland Government Departments and the Library Boards as a consequence of transfers of functions: regulations 2(2) and (3), 4(2), 5, 6, 8 and 11(2) and (3).

Regulation 2 amends the Entitlement Regulations. Paragraph (4) amends regulation 14 to prescribe what is permitted overseas childcare for the purposes of entitlement to the childcare element of working tax credits.

Regulation 3 amends the Income Regulations. Paragraph (2) amends regulation 4 to remove references to payments that are no longer made. Paragraph (3) amends regulation 6 so that the “relevant benefit amount” (as defined by section 23E of the Income Tax (Trading and Other Income) Act 2005 (c. 5)) does not form part of a trader’s taxable profits in the calculation of that trader’s income for the purposes of their entitlement to tax credits. Paragraph (4) amends regulation 10 so that interest arising on payments made under, or in connection with, the Windrush Compensation Scheme administered by the Home Office is disregarded in the calculation of a person’s investment income for the purposes of their entitlement to tax credits, for a period of 52 weeks. Paragraph (5) amends regulation 19 so that any discretionary payment made to a person pursuant to the Discretionary Support Regulations (Northern Ireland) 2016 (S.I. 2016/270) and any payment made under, or in connection with, the Windrush Compensation Scheme administered by the Home Office is disregarded in the calculation of that person’s income for the purposes of their entitlement to tax credits.

Regulation 4 amends the Child Tax Credit Regulations. Paragraph (3) makes consequential amendments to regulation 14 which should have been made by regulation 5 of the Child Tax Credit (Amendment) Regulations 2018 (S.I. 2018/1130). A similar consequential amendment is made by regulation 9 to regulation 25A of the Polygamous Marriage Regulations which should have been made by regulation 6 of S.I. 2018/1130. As a consequence of the omission to make these amendments, this instrument is being issued free of charge to all known recipients of S.I. 2018/1130.

Regulation 7 amends regulation 3 of the Residence Regulations. Paragraph (2) makes amendments to replace out of date references to the Immigration (European Economic Area) Regulations 2006 and to EU legislation with references to the Immigration (European Economic Area) Regulations 2016 (S.I. 2016/1052). Paragraph (2) also inserts a new paragraph (5A) in regulation 3 providing that paragraph (5)(b)(ii) of that regulation does not apply to a person who is lawfully working in the United Kingdom and is a national of a State with which the European Union has concluded an agreement under Article 217 of the Treaty on the Functioning of the European Union providing, in the field of social security, for the equal treatment of workers who are nationals of the signatory State and their families.

Regulation 10 amends regulation 9 of the Child Benefit Regulations to extend the ways in which a person who has made a claim for child benefit or guardian’s allowance can withdraw that claim.

Regulation 11 amends the Child Benefit Regulations. Paragraphs (4) and (5) amend regulations 23 and 27 by replacing out of date references to the Immigration (European Economic Area) Regulations 2006 and to EU legislation with references to the Immigration (European Economic Area) Regulations 2016. Paragraphs (4) and (5) also insert new paragraphs (4A) and (5A) in regulations 23 and 27 of the Child Benefit Regulations respectively, providing that paragraphs (4)(b) and (3)(b) of the respective regulations do not apply to a person who is lawfully working in Great Britain or Northern Ireland and is a national of a State with which the European Union has concluded an agreement under Article 217 of the Treaty on the Functioning of the European Union providing, in the field of social security, for the equal treatment of workers who are nationals of the signatory State and their families.

Regulation 12 amends regulation 3 of the Childcare Regulations to prescribe what is permitted overseas childcare for the purposes of the childcare payments scheme.

A full impact assessment has not been produced for regulations 2 to 11 because no impact on the private or voluntary sectors is foreseen. In relation to regulation 12 a full impact assessment of the effect that the childcare payments scheme will have on the costs of business and the voluntary sector was published on 10th June 2014 alongside the draft Childcare Payments Bill and was updated on 20th November 2014 and again on 30th March 2017. These are available from the gov.uk website at https:www.gov.uk/government/publications/tax-free-childcare-impact-assessment-march-2017.