The Tax Credits (Payment by Employers) Regulations 1999

Application for funding from the Board

8.—(1) Where–

(a) the condition in regulation 7(4) is satisfied, or

(b) the relevant employer or the relevant subsequent employer considers that the condition in regulation 7(4) will be satisfied on the date of any subsequent payment of emoluments to one or more employees who are entitled to payment of tax credit,

the employer may apply to the Board for funding on a form provided, or approved, for that purpose by the Board.

(2) An application by an employer under paragraph (1) shall be for any amount up to, but not exceeding, the total sum required by the employer to pay tax credit under regulation 6(2) to his employee or employees entitled to payment of tax credit for–

(a) the period of 6 months immediately following the date of the employer’s application, or

(b) a period of 6 months commencing not earlier than 6 months before the date of the employer’s application but not later than that date.

(3) If an application by an employer under paragraph (1) is accepted the Board shall pay to the employer the amount applied for or such other amount as the Board may determine in the circumstances to be reasonable having regard to all relevant matters including–

(a) the past obligations and the likely future obligations of the employer under the enactments specified in regulation 7, and

(b) the obligations of the employer under any start notification issued to him in the period of 6 months ending with the date of the application under paragraph (1).

(4) An officer of the Board may vary a determination under paragraph (3) if he has reason to believe that it was incorrect at the time that it was made.

(5) An officer of the Board may make a determination superseding an earlier determination, whether as originally made or as varied in accordance with paragraph (4), which has become inappropriate for any reason.

(6) The Board shall notify the employer of any decision or variation of a termination they make in respect of–

(a) an application under paragraph (1), or

(b) the amount determined by the Board under paragraph (3).

(7) An employer may appeal to the General Commissioners against–

(a) the Board’s refusal of an application under paragraph (1),

(b) an amount determined by the Board under paragraph (3), or

(c) an amount determined by the Board under paragraph (3) as varied under paragraph (4),

by giving notice to the Board within thirty days of the receipt by him of notice of the Board’s decision.

(8) An appeal under paragraph (7) shall be heard by the General Commissioners for the division in which the place of employment is situated.

(9) The provisions of Part V of the Management Act and of the General Commissioners (Jurisdiction and Procedure) Regulations 1994(1) shall apply with any necessary modifications to the appeal as they apply to appeals against assessments.

(10) On appeal, the General Commissioners, having regard to the matters set out in paragraph (3) may–

(a) confirm the Board’s refusal of an application under paragraph (1), or allow the appeal against that refusal;

(b) confirm, increase or reduce the amount determined under paragraph (3) or that amount as varied under paragraph (4).

(11) Subject to paragraph (9), the determination of the General Commissioners shall be final.

(12) Where–

(a) an employer appeals to the General Commissioners under paragraph (7); and

(b) the General Commissioners determine the appropriate amount of funding in a sum which exceeds the amount determined by the Board under paragraph (3),

the Board shall pay to that employer a sum equal to the excess.

(13) An amount which is paid to an employer by the Board under paragraph (12) shall carry interest at the rate applicable under section 178 of the Finance Act 1989(2) for the purposes of section 824 or, as the case may be, section 826 of the Income and Corporation Taxes Act 1988(3) from the date on which the condition in regulation 7(4) is satisfied until payment.

(14) Funds provided to an employer by the Board in accordance with this regulation shall be for the purpose only of payment by that employer of tax credit under regulation 6(2) to one or more employees.

(1)

S.I. 1994/1812.

(2)

1989 c. 26; relevant amendments were made by paragraph 1(3) of Schedule 4 to the Finance Act 1998 (c. 36).

(3)

1988 c. 1; relevant amendments to Section 824 were made by sections 196 and 199(2)(a) of, and by paragraph 41 of Schedule 19 and Part V of Schedule 26 to, the Finance Act 1994 (c. 9). Relevant amendments to Section 826 were made by Section 180(6) and (7) of the Finance Act 1989 (c. 26), sections 196 and 199 of, and paragraph 42 of Schedule 19 to, the Finance Act 1994 (c. 9), by paragraphs 1 and 2 of Schedule 4 to the Finance Act 1998 (c. 36) and by S.I. 1998/3173.