The Tax Credits (Miscellaneous Amendments) Regulations 2012

Amendment of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002: elements of the credit; time off; illness, etc; not working; changed circumstances; rates

2.—(1) This regulation amends the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002(1) as follows.

(2) In regulation 2(1)—

(a) after the entry for “initial claim”, it inserts:

““limited capability for work credit” refers to a credit under regulation 8B(1) of the Social Security (Credits) Regulations 1975(2) where paragraph (2)(a)(iv) or (2)(a)(v) of that regulation applies, and which follows the cessation of the entitlement period of contributory employment and support allowance;”; and

(b) in the entry for “patient”, for “1975” it substitutes: “2005(3)”.

(3) In regulation 3—

(a) in paragraph (1)—

(i) after sub-paragraph (d), it inserts: “and”;

(ii) it omits sub-paragraph (f) and the “and” before it;

(b) in paragraph (3)—

(i) after sub-paragraph (a), it inserts: “or”;

(ii) it omits sub-paragraph (c) and the “or” before it.

(4) In regulation 4(1)—

(a) after “conditions”, it inserts: “(and in the case of the Second condition, one of the variations in that condition)”;

(b) in the Second condition—

(i) for “The person”, it substitutes: “First variation: In the case of a single claim, the person—”;

(ii) in paragraph (a)(ii), it omits: “either he or his partner”;

(iii) it omits paragraph (b);

(iv) after paragraph (d), it inserts—

“Second variation: In the case of a joint claim where neither person is responsible for a child or qualifying young person, the person—

(a) is aged at least 16 and undertakes work for not less than 16 hours per week and has a physical or mental disability which puts that person at a disadvantage in getting a job and satisfies regulation 9(1)(c);

(b) is aged at least 25 and undertakes work for not less than 30 hours per week; or

(c) is aged at least 60 and undertakes work for not less than 16 hours per week.

Third variation: In the case of a joint claim where a person or that person’s partner is responsible for a child or qualifying young person, the person—

(a) is aged at least 16 and is a member of a couple where at least one partner undertakes work for not less than 16 hours per week and the aggregate number of hours for which the couple undertake work is not less than 24 hours per week;

(b) is aged at least 16 and undertakes work for not less than 16 hours per week and has a physical or mental disability which puts that person at a disadvantage in getting a job and satisfies regulation 9(1)(c);

(c) is aged at least 16 and undertakes work for not less than 16 hours per week and that person’s partner is—

(i) incapacitated and satisfies any of the circumstances in regulation 13(4) to (8); or

(ii) an in-patient in hospital; or

(iii) in prison (whether serving a custodial sentence or remanded in custody awaiting trial or sentence); or

(iv) entitled to carer’s allowance under section 70 of the Social Security Contributions and Benefits Act 1992(4);

(d) is aged at least 60 and undertakes work for not less than 16 hours per week.”;

(c) it omits from “Paragraphs (3) and (4)” to “getting a job.”.

(5) After regulation 4(1) it inserts—

“(1A) For the purposes of interpretation of paragraph (1)—

(a) paragraphs (3) and (4) provide the method of determining the number of hours of qualifying remunerative work that a person undertakes;

(b) regulations 5, 5A, 6 and 7A and 7B apply in relation to periods of absence from work connected with childbirth or adoption, sickness, strike periods or suspension from work;

(c) regulations 7 and 7C apply to term time and seasonal workers and where pay is received in lieu of notice;

(d) regulation 7D applies where a person or, in the case of a joint claim, one or both persons cease to work or reduce their hours to the extent that they no longer satisfy the Second condition in paragraph (1);

(e) regulation 8 applies where there is a gap between jobs;

(f) regulation 9 prescribes the conditions which must be satisfied by, or exist in relation to, a person so that he is to be treated as having a physical or mental disability which puts him at a disadvantage in getting a job.”.

(6) In regulation 5(2), for “paragraphs (3) and (3A)”, it substitutes: “paragraphs (3), (3A) and regulation 7D”.

(7) In regulation 5A—

(a) in paragraph (2), for “A person who was undertaking qualifying remunerative work for at least 16 hours per week”, it substitutes: “A person who would have been treated as being engaged in qualifying remunerative work if they or, in the case of a joint claim, they or their partner had been responsible for a child or qualifying young person”;

(b) after paragraph (3), it inserts—

“(4) This regulation is subject to regulation 7D.”.

(8) In regulation 6(2), for “paragraphs (3) and (4)”, it substitutes: “paragraphs (3), (4) and regulation 7D”.

(9) In regulations 7A(2) and 7B(2), for “paragraph (3)”, it substitutes: “paragraph (3) and regulation 7D”.

(10) In regulation 7D—

(a) in the heading after “16”, it inserts: “, 24”;

(b) in paragraph (1)(e), after (c), it inserts: “of the first variation or paragraph (b) of the second variation”;

(c) after paragraph (1)(e), it inserts—

“(f) one or both members of a couple who satisfy paragraph (a) of the third variation of the Second condition in regulation 4(1) and are engaged in qualifying remunerative work cease to work or reduce their hours to the extent that they cease to meet the condition that one member of the couple works not 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.”.

(11) In regulation 9(2)(d)—

(a) after the first use of “employment and support allowance”, it inserts: “or a limited capability for work credit,”;

(b) after the second use of “employment and support allowance”, it inserts: “or that credit”;

(c) after “sick pay”, it inserts: “or a benefit or allowance mentioned in sub–paragraphs (a) to (c) or the income support payable under paragraph (3)(a),”.

(12) In regulation 9(6)(a)(ii)—

(a) after “on account of his”, it inserts: “incapacity for work or”;

(b) after “an employment and support allowance”, it inserts: “, or the pay or benefit mentioned in paragraph (i),”;

(c) after the second use of “on account of”, it inserts: “incapacity for work or”.

(13) In regulation 9(7)(b)(iv)—

(a) after “employment and support allowance”, it inserts: “or a limited capability for work credit,”;

(b) after “that allowance”, it inserts: “or credit”;

(c) after the first use of “sick pay”, it inserts: “or a benefit or allowance mentioned in paragraphs (i) to (iii),”.

(14) In regulation 10, it omits paragraph (3).

(15) In regulation 11—

(a) it omits paragraphs (2) and (3);

(b) in paragraph (4), it omits: “also”.

(16) In regulation 13(1)—

(a) in sub-paragraphs (b) and (c), after “work”, it inserts: “for not less than 16 hours per week”;

(b) in sub-paragraph (c)(iii) it omits the full stop and inserts “; or” and after sub-paragraph (c)(iii) it inserts—

“(iv) is entitled to carer’s allowance under section 70 of the Social Security Contributions and Benefits Act 1992(5).”.

(17) In regulation 13(6)—

(a) after “payable” in the introductory words, it inserts: “or – in the case of a credit – an entitlement”;

(b) it omits in the introductory words: “pensions or allowances”;

(c) in sub-paragraph (h)—

(i) after “support allowance”, it inserts: “or a limited capability for work credit,”;

(ii) after “that allowance”, it inserts: “or credit”;

(iii) after the first use of “sick pay”, it inserts: “or a benefit or allowance mentioned in sub-paragraph (a) or (b) or (d),”.

(18) In regulation 16(5)(a)(ii), for “three months” it substitutes: “one month”.

(19) It omits regulation 18.

(20) In regulation 20(1)—

(a) after sub-paragraph (e), it inserts: “and”;

(b) it omits: sub-paragraph (g) and the “and” before it.

(1)

S.I. 2002/2005; relevant amending instruments are S.I. 2003/70, 2003/701, 2003/2815, 2004/762, 2006/217, 2008/1879, 2009/697, 2009/1829, 2010/2914.

(2)

S.I. 1975/556; relevant amending instruments are S.I. 1996/2367, 2000/3120, 2003/521, 2008/1554, 2010/385.

(3)

Regulation 2(4) and (5) of the Social Security (Hospital In-Patients) Regulations 2005 (S.I. 2005/3360) re-enacted the definition of a hospital in-patient previously found in S.I. 1975/555 (as amended by S.I 1992/2595 and 1999/1326).

(4)

1992 c. 4; section 70 was amended by S.I. 2002/1457 and S.I. 2011/2426.

(5)

1992 c. 4; section 70 was amended by S.I. 2002/1457 and S.I. 2011/2426.