Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001

JurisdictionUK Non-devolved

2001 No. 892

SOCIAL SECURITY

TAXES

The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001

Made 9th March 2001

Laid before Parliament 12th March 2001

Coming into force in accordance with regulation 1(2) and (3)

The Treasury, in exercise of the powers conferred upon them by sections 128(3), 129(6), 136(3) and (4), 137(1) and 175(1), (3) and (4) of the Social Security Contributions and Benefits Act 19921, and section 2(1)(a) and (4) of, and paragraphs 1(c), (d) and (g) and 20(a) of Schedule 2 to, the Tax Credits Act 19992, and the Commissioners of Inland Revenue, in exercise of the powers conferred upon them by section 137(2)(c) and (d) of the Social Security Contributions and Benefits Act 19923, sections 5(1)(b) and (k) and (2)(c) and (d) and 189(1), (4) and (5) of the Social Security Administration Act 19924and sections 2(1)(c) and 6 of, and paragraphs 7 and 20(a) and (c) of Schedule 2 to, the Tax Credits Act 1999, hereby make the following Regulations:

Citation, commencement and effect
S-1 Citation, commencement and effect

Citation, commencement and effect

1.—(1) These Regulations may be cited as the Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001.

(2) Except for regulation 20, these Regulations shall come into force on 4th April 2001.

(3) Regulation 20 shall come into force on 10th April 2001 immediately after the Tax Credits (Claims and Payments) (Amendment) Regulations 20015.

(4) Regulations 4 to 9, 12 to 17 and 19 shall have effect in relation to claims which are made on or after 4th April 2001.

(5) Regulations 10 and 18 shall have effect in relation to award periods which are current on or after 4th April 2001.

(6) Regulation 20 shall have effect in relation to claims which are made on or after 10th April 2001.

Interpretation
S-2 Interpretation

Interpretation

2. In these Regulations—

“award periods” means award periods of disabled person’s tax credit or working families' tax credit;

“the Board” means the Commissioners of Inland Revenue;

“claims” means claims for working families' tax credit or disabled person’s tax credit;

“the Disability Working Allowance Regulations” means the Disability Working Allowance (General) Regulations 19916;

“the Family Credit Regulations” means the Family Credit (General) Regulations 19877.

Amendments to the Disability Working Allowance Regulations

Amendments to the Disability Working Allowance Regulations

S-3 Amend regulation 2 of the Disability Working Allowance...

3.—(1) Amend regulation 2 of the Disability Working Allowance Regulations as follows.

(2) After the definition of “employment zone contractor”8insert the following definition—

““extra statutory maternity pay” means a payment or payments made by an employer to an employee during a maternity pay period in order to supplement statutory maternity pay that is paid to that employee for that period;”.

(3) After the definition of “lower rate”9insert the following definition—

““maternity allowance” shall be construed in accordance with section 35 of the Contributions and Benefits Act10;”.

(4) After the definition of “sports award”11insert the following definitions—

““statutory maternity pay” and “maternity pay period” shall be construed in accordance with Part XII of the Contributions and Benefits Act;”.

(5) After the definition of “subsistence allowance”12insert the following definition—

““surrogate child” means a child in respect of whom an order has been made under section 30 of the Human Fertilisation and Embryology Act 199013;”.

S-4 Amend regulation 6 of the Disability Working Allowance...

4.—(1) Amend regulation 6 of the Disability Working Allowance Regulations as follows.

(2) In paragraph (4)14

(a)

(a) in sub-paragraph (c) for the words “this paragraph” substitute “sub-paragraph (b)”;

(b)

(b) after sub-paragraph (c) insert the following sub-paragraph—

“or

(d)

(d) in the case of a woman on maternity leave at the date of the claim, the hours worked shall be calculated on the basis of a declaration made by her of the average hours worked per week prior to the commencement of her maternity leave.”.

(3) In paragraph (5)15after sub-paragraph (d) add the following sub-paragraph—

“or

(e)

(e) cannot satisfy the requirements of sub-paragraph (a) or (b) above at the date of claim because she is on maternity leave at that date but—

(i) prior to the commencement of her maternity leave, she worked, on average, not less than 16 hours a week, and

(ii) she is entitled to maternity allowance or statutory maternity pay at the date of the claim.”.

S-5 Amend regulation 16 of the Disability Working Allowance...

5.—(1) Amend regulation 16 of the Disability Working Allowance Regulations as follows.

(2) In each of paragraphs (2) to (5) for the words “paragraph (7)” substitute “paragraphs (7), (8A), (8B) and (8C)”.

(3) After paragraph (8) insert the following paragraphs—

S-8A

“8A Where—

(a) the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer, and

(b) the next payment from her employer following the date of the claim is a payment which will include statutory maternity pay paid to her for a full pay period at the lower rate only,

the Board shall require the claimant to furnish them with an estimate of her likely earnings and statutory maternity pay to be contained in that payment, and her normal weekly earnings shall be determined by taking account of that estimate.

S-8B

8B Where—

(a) the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer,

(b) the claim is made during a maternity pay period and at a time when less than half of that maternity pay period has expired, and

(c) in consequence the next payment from her employer following the date of the claim is a payment which will not include statutory maternity pay paid to her for a full pay period at the lower rate only,

the Board shall require the claimant to furnish them with an estimate of her likely earnings and statutory maternity pay to be contained in the first future payment from her employer in which statutory maternity pay will be paid to her at the lower rate only, and her normal weekly earnings shall be determined by taking account of that estimate.

S-8C

8C Where—

(a) the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer,

(b) the claim is made during a maternity pay period and at a time when more than half of that maternity pay period has expired, and

(c) in consequence the next payment from her employer following the date of the claim is a payment which will not include statutory maternity pay paid to her for a full pay period at the lower rate only,

the Board shall require the claimant to furnish them with details of her earnings and statutory maternity pay contained in the payment from her employer immediately preceding the date of the claim, and her normal weekly earnings shall be determined accordingly.”.

S-6 Amend regulation 21 of the Disability Working Allowance...

6.—(1) Amend regulation 21 of the Disability Working Allowance Regulations16as follows.

(2) After paragraph (4) add the following paragraphs—

S-5

“5 An employed earner shall not be treated as being in receipt of earnings in any assessment period as long as she is entitled to maternity allowance at the date of the claim.

S-6

6 An employed earner shall not be treated as being in receipt of earnings in any assessment period as long as she is entitled to statutory maternity pay at the date of the claim and is neither receiving nor expecting to receive at that date extra statutory maternity pay from her employer.”.

S-7 Amend regulation 22 of the Disability Working Allowance...

7.—(1) Amend regulation 22 of the Disability Working Allowance Regulations as follows.

(2) In paragraph (4)17after the words “paragraph (8)” insert “, (8A) or (8B)”.

S-8 Amend regulation 24 of the Disability Working Allowance...

8.—(1) Amend regulation 24 of the Disability Working Allowance Regulations as follows.

(2) After paragraph (3)18add the following paragraph—

S-4

“4 A self-employed earner shall not be treated as being in receipt of earnings in any assessment period as long as she is entitled to maternity allowance at the date of the claim.”.

S-9 Amend regulation 51A of the Disability Working Allowance...

9.—(1) Amend regulation 51A of the Disability Working Allowance Regulations19as follows.

(2) After paragraph (2) insert the following paragraph—

S-2ZA

“2ZA A person is not engaged in remunerative work for the purposes of paragraph (1) where that person is treated as being in remunerative work by virtue only of either—

(a) paragraph (5)(c) of regulation 6 (recognised, customary or other holiday) in circumstances where the absence from work arises from the need to care for a recently adopted child or young person or from the acquisition of a surrogate child, or

(b) paragraph (5)(e) of that regulation (woman on maternity leave),

unless immediately prior to the adoption of the child or young person or the granting of the parental order for the surrogate child or the birth of the child (as the case may be) that person was paying, or had incurred, relevant childcare charges for another child or other children of her household.”.

(3) In paragraph (2A)20after sub-paragraph (c) add the following sub-paragraph—

“(d)

“(d) where paragraph (2ZA) applies, in the definition of “relevant childcare charges” the references to a child of the claimant’s family do not include references to any child born or child or young person adopted or surrogate child acquired during the period of absence or maternity leave.”.

S-10 After regulation 54 insert the following regulation— 54A...

10. After regulation 54 insert the following regulation—

S-54A

Surrendering an award following birth or adoption etc. of child

54A....

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