The Tax Credits (Approval of Child Care Providers) Scheme 2005

Explanatory Note

(This note is not part of the Scheme)

This Scheme provides for the approval of child care providers for the purposes of section 12(5) of the Tax Credits Act 2002 (“the Act”). The Secretary of State is the “appropriate national authority” in relation to care provided in England. Qualifying child care (as defined) provided by a person approved in accordance with this Scheme constitutes care provided by a person of a prescribed description for the purposes of section 12(4) of the Act. Regulations made under section 12(1) of the Act prescribe the circumstances in which entitlement to working tax credit in respect of care provided by a person approved in accordance with this Scheme may arise. (See the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (S.I. 2002/2005)).

The approval body named in this Scheme is specified by the Secretary of State under section 12(7) of the Act (article 3). Applications for approval are determined by the approval body in accordance with criteria set out in this Scheme (article 7).

The Scheme further provides:

(a) for the approval body to operate a system for the determination of applications for approval (article 8);

(b) for the approval body to provide information to the Commissioners of Inland Revenue in order to enable them to discharge their functions relating to working tax credit (article 9);

(c) for the period of validity of an approval (article 10);

(d) for the right to appeal against the refusal or withdrawal of approval (article 11);

(e) for the charging of fees by the approval body (article 12).

The Tax Credits (Approval of Home Child Care Providers) Scheme 2003 is revoked with savings for current approvals granted under that instrument (article 13).

This Scheme applies only in relation to England.