The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002

[F1 Alteration in hours worked due to coronavirus U.K.

7E.— (1) For the purposes of the conditions of entitlement in this Part, a person to whom paragraph (2) applies is treated as being engaged in qualifying remunerative work during the period that that person is either—

(a) a furloughed employee under the Coronavirus Job Retention Scheme; or

(b) a coronavirus-impacted worker.

(2) This paragraph applies to—

(a) a person, whether or not a member of a couple, who is a furloughed employee under the Coronavirus Job Retention Scheme;

[F2 (aa) a person (AA), whether or not a member of a couple, who—

(i) ceases to be a furloughed employee under the Coronavirus Job Retention Scheme at a date before the date at which that Scheme ceases,

(ii) within four weeks of the date of ceasing to be a furloughed employee, has an offer of work which satisfies the Second condition of regulation 4(1),

(iii) accepts that offer, and

(iv) is subsequently notified by AA’s employer that AA is not required to work all, or any, of the hours that AA is contracted to work, providing that that reduction is not permanent and is due to coronavirus;]

(b) a person (A), whether or not a member of a couple, who was engaged in qualifying remunerative work for no less than 16 hours per week—

(i) who starts to work less than 16 hours per week and that reduction in hours is due to coronavirus;

(ii) who is notified by A’s employer that A is not required to work any hours due to coronavirus, but A’s employer has not made any application under the Coronavirus Job Retention Scheme in respect of A; or

(iii) who is unable to work as a consequence of shielding;

(c) a person (B), whether or not a member of a couple, who satisfies paragraph (c) of the first variation or paragraph (b) of the second variation of the Second condition in regulation 4(1) (qualifying remunerative work) and who is engaged in qualifying remunerative work for not less than 30 hours per week—

(i) who starts to work less than 30 hours per week and that reduction in hours is due to coronavirus;

(ii) who is notified by B’s employer that P is not required to work any hours due to coronavirus, but B’s employer has not made any application under the Coronavirus Job Retention Scheme in respect of B; or

(iii) who is unable to work as a consequence of shielding; or

(d) one or both members of a couple who satisfy paragraph (a) of the third variation of the Second condition in regulation 4(1) and who are engaged in qualifying remunerative work—

(i) who reduce their hours (including a reduction to nil) so that they no longer meet the condition that one member of the couple works no less than 16 hours per week and the aggregate number of hours for which the couple are engaged in qualifying remunerative work is not less than 24 hours per week and any reduction in hours worked is as a consequence of coronavirus; or

(ii) who are unable to work as a consequence of shielding.

[F3 (e) a person (C), whether or not a member of a couple, who—

(ii) has returned to qualifying remunerative work following a period during which C has been treated as being engaged in qualifying remunerative work by virtue of regulation 5 or regulation 6 (“a statutory absence”),

(ii) before that period of statutory absence, worked at least 16 hours per week, and

(iii) is unable to work at least 16 hours immediately after C’s return to work providing that that reduction is not permanent and is due to coronavirus,]

(3) For the purposes of this regulation, a person is a coronavirus-impacted worker if that person is—

(a) an employed person who is within [F4 paragraph (2)(aa), (b), (c), (d) or (e)]; or

(b) a self-employed person who is within paragraph (2)(b)(i) or (iii), paragraph (2)(c)(i) or (iii) [F5 paragraph (2)(d) or paragraph (2)(e)].

(4) Where paragraph (2)(a) applies, at the date at which a person (P) ceases to be a furloughed employee under the Coronavirus Job Retention Scheme [F6 in accordance with paragraph (5)(a),] if—

[F7 (a) the hours that P works do not satisfy the variation in the Second condition of regulation 4(1) which P satisfied immediately before P was furloughed under that Scheme, but it is P’s intention that P will satisfy that variation by the end of the period of eight weeks, beginning with the date on which P ceases to be a furloughed employee—

(i) where P does satisfy that variation by the end of that period, P will be treated as meeting the condition of entitlement for this Part; and

(ii) where P does not satisfy that variation at the end of that period, for the purposes of the conditions of entitlement for the purposes of this Part, P will be treated as being engaged in qualifying remunerative work for the four week period which begins immediately after the end of that eight-week period;]

(b) [F8 the hours that P works satisfy the variation which P satisfied immediately before P was furloughed under that Scheme, but during the period of eight weeks beginning with the date on which P ceased to be a furloughed employee—]

(i) the hours that P works are permanently reduced so that P is not able to satisfy the variation in the Second condition of regulation 4(1) which P satisfied immediately before P became a furloughed employee under that Scheme; or

(ii) P ceases to undertake work,

for the purposes of the conditions of entitlement in this Part, P will be treated as being engaged in qualifying remunerative work for the four-week period which begins immediately after the reduction in hours or the cessation of employment;

(c) P does not undertake work, for the purposes of the conditions of entitlement in this Part, P will be treated as being engaged in qualifying remunerative work for the four-week period which begins immediately after P ceases to be a furloughed employee under that Scheme; or

(d) there is a permanent reduction in the hours that P works such that P is unable to satisfy the variation in the Second condition of regulation 4(1) which P satisfied immediately before P became a furloughed employee under that Scheme, for the purposes of the conditions of entitlement for this Part, P will be treated as being engaged in qualifying remunerative work for the four-week period which begins immediately after P ceases to be a furloughed employee under that Scheme.

[F9 (4A) Where paragraph (2)(a) applies, at the date at which a person ceases to be a furloughed employee under the Coronavirus Job Retention Scheme in accordance with paragraph (5)(b) or (c), that person will be treated as being engaged in qualifying remunerative work for the four-week period which begins immediately after that person ceases to be a furloughed employee.]

[F10 (5) For the purposes of paragraph (4), a person ceases to be a furloughed employee under the Coronavirus Job Retention Scheme on the earlier of—

(a) the day on which the Coronavirus Job Retention Scheme ceases;

(b) the day on which that person ceases to undertake work; or

(c) the date on which there is a permanent reduction in the hours worked, such that that person is unable to satisfy the variation in the Second condition of regulation 4(1) which that person satisfied immediately before that person became a furloughed employee under the Coronavirus Job Retention Scheme.]

(6) [F11 Where a person (P) ceases to be a coronavirus-impacted worker in accordance with paragraph (7)(a), if—

(a) the hours that P works do not satisfy the variation in the Second condition of regulation 4(1) which P satisfied immediately before P became a coronavirus-impacted worker, but it is P’s intention that P will satisfy that variation by the end of the period of eight weeks, beginning with the date on which P ceases to be a coronavirus-impacted worker—

(i) where P does satisfy that variation by the end of that period, P will be treated as meeting the condition of entitlement for this Part; and

(ii) where P does not satisfy that variation at the end of that period, for the purposes of the conditions of entitlement for the purposes of this Part, P will be treated as being engaged in qualifying remunerative work for the four week period which begins immediately after the end of that eight-week period;]

(b) [F12 the hours that P works do not satisfy the variation which P satisfied immediately before P became a coronavirus-impacted worker, and during the period of eight weeks beginning with the date on which P ceased to be a coronavirus-impacted worker—]

(i) the hours that P works are permanently reduced so that P is not able to satisfy the variation in the Second condition of regulation 4(1) that P satisfied immediately before P became a coronavirus-impacted worker; or

(ii) P ceases to undertake work,

for the purposes of the conditions of entitlement in this Part, P will be treated as being engaged in qualifying remunerative work for the four-week period which begins immediately after the reduction in hours or after P ceases to work; or

(c) P does not undertake work, for the purposes of the conditions of entitlement in this Part, P will be treated as being engaged in qualifying remunerative work for the four-week period which begins immediately after P ceases to be a coronavirus-impacted worker;

(d) there is a permanent reduction in the hours that P works such that is unable to satisfy the variation in the Second condition of regulation 4(1) which P satisfied immediately before P became a coronavirus-impacted worker, for the purposes of the conditions of entitlement in this Part, P will be treated as being engaged in qualifying remunerative work for the four-week period which begins immediately after P ceases to be a coronavirus-impacted worker.

[F13 (6A) Where a person ceases to be a coronavirus-impacted worker in accordance with paragraph (7)(b) or (c), that person will be treated as being engaged in qualifying remunerative work for the four-week period which begins immediately after that person ceases to be a coronavirus-impacted worker.]

[F14 (7) For the purposes of paragraph (6) and (6A) a person who is within paragraph (2)(aa), (2)(b), (2)(c), (2)(d) or (2)(e) ceases to be a coronavirus-impacted worker on the earliest of—

(a) the day on which the Coronavirus Job Retention Scheme ceases;

(b) the day on which that person ceases to undertake work, and

(c) the date on which there is a permanent reduction in the hours worked such that that person is unable to satisfy the variation in the Second condition of regulation 4(1) which that person satisfied immediately before that person became a coronavirus-impacted worker.]

(8) In this regulation a person (P) is shielding, or required to shield, if P, or another person living in the same household as P, has been notified by the National Health Service, their specialist or their general practitioner that they are clinically extremely vulnerable due to coronavirus.]

Textual Amendments

F1 Reg. 7E inserted (23.5.2020) by The Tax Credits (Coronavirus, Miscellaneous Amendments) Regulations 2020 (S.I. 2020/534), regs. 1, 2(5)

F2 Reg. 7E(2)(aa) inserted (14.1.2021) by The Tax Credits, Childcare Payments and Childcare (Extended Entitlement) (Coronavirus and Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1515), regs. 1(2), 2(5)(a)(i)

F3 Reg. 7E(2)(e) inserted (14.1.2021) by The Tax Credits, Childcare Payments and Childcare (Extended Entitlement) (Coronavirus and Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1515), regs. 1(2), 2(5)(a)(ii)

F4 Words in reg. 7E(3)(a) substituted (14.1.2021) by The Tax Credits, Childcare Payments and Childcare (Extended Entitlement) (Coronavirus and Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1515), regs. 1(2), 2(5)(b)(i)

F5 Words in reg. 7E(3)(b) substituted (14.1.2021) by The Tax Credits, Childcare Payments and Childcare (Extended Entitlement) (Coronavirus and Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1515), regs. 1(2), 2(5)(b)(ii)

F6 Words in reg. 7E(4) inserted (14.1.2021) by The Tax Credits, Childcare Payments and Childcare (Extended Entitlement) (Coronavirus and Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1515), regs. 1(2), 2(5)(c)(i)

F7 Reg. 7E(4)(a) substituted (14.1.2021) by The Tax Credits, Childcare Payments and Childcare (Extended Entitlement) (Coronavirus and Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1515), regs. 1(2), 2(5)(c)(ii)

F8 Words in reg. 7E(4)(b) substituted (14.1.2021) by The Tax Credits, Childcare Payments and Childcare (Extended Entitlement) (Coronavirus and Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1515), regs. 1(2), 2(5)(c)(iii)

F9 Reg. 7E(4A) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Tax Credits, Childcare Payments and Childcare (Extended Entitlement) (Coronavirus and Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1515), regs. 1(2), 2(5)(d)

F10 Reg. 7E(5) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Tax Credits, Childcare Payments and Childcare (Extended Entitlement) (Coronavirus and Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1515), regs. 1(2), 2(5)(e)

F11 Words in reg. 7E(6) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Tax Credits, Childcare Payments and Childcare (Extended Entitlement) (Coronavirus and Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1515), regs. 1(2), 2(5)(f)(i)

F12 Words in reg. 7E(6)(b) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Tax Credits, Childcare Payments and Childcare (Extended Entitlement) (Coronavirus and Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1515), regs. 1(2), 2(5)(f)(ii)

F13 Reg. 7E(6A) inserted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Tax Credits, Childcare Payments and Childcare (Extended Entitlement) (Coronavirus and Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1515), regs. 1(2), 2(5)(g)

F14 Reg. 7E(7) substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by The Tax Credits, Childcare Payments and Childcare (Extended Entitlement) (Coronavirus and Miscellaneous Amendments) Regulations 2020 (S.I. 2020/1515), regs. 1(2), 2(5)(h)