The Tax Credits (Coronavirus, Miscellaneous Amendments) Regulations 2020

Amendment of the Tax Credits (Claims and Notifications) Regulations 2002

4.—(1) The Tax Credits (Claims and Notifications) Regulations 2002(1) are amended as follows.

(2) In regulation 2 (interpretation)(2)—

(a) after the definition of “the Contributions and Benefits Act” insert—

““Coronavirus Job Retention Scheme” means the scheme of that name established under the direction given by the Chancellor of the Exchequer on 15th April 2020 (as that Scheme has effect from time to time);”;

(b) after the definition of “couple” insert—

““critical worker” means a worker in a critical sector listed—

(a)

in England in the version of the document entitled “Guidance for schools, childcare providers, colleagues, local authorities in England on maintaining educational provision” published by the Cabinet Office and the Department for Education on 14th May 2020(3);

(b)

in Scotland in the document entitled “Coronavirus (COVID-19): school and early learning closures – guidance about key workers and vulnerable children” published on 31st March 2020(4);

(c)

in Wales in the version of the document entitled “Coronavirus key (critical) workers” published on 18th May 2020(5); and

(d)

in Northern Ireland in the document entitled “General Guidance on COVID-19 for schools(6);” and

(c) in the definition of “the Board” for “of Inland Revenue” substitute “for Her Majesty’s Revenue and Customs”.

(3) In regulation 21 (requirement to notify changes of circumstances which may decrease rate)(7) after paragraph (3) insert—

“(4) Where the claimant is a critical worker, this paragraph does not apply for the period beginning on 23rd May 2020 and ending on the date on which the Coronavirus Job Retention Scheme ends, but regulation 21A applies during that period.”.

(4) After regulation 21 insert—

“Coronavirus – date of notification – cases where change of circumstances which may decrease the rate at which a person is, or persons are, entitled to a tax credit or mean that entitlement to that tax credit ceases

21A.— (1) This regulation only applies—

(a) for the period beginning on 23rd May 2020 and ending on the date on which the Coronavirus Job Retention Scheme ends; and

(b) if the claimant is a critical worker during that period.

(2) Where this regulation applies, the claimant must give notification within the time prescribed by paragraph (3) if there is a change of circumstances of the description prescribed by paragraph (2) of regulation 21 (requirement to notify changes of circumstances which may decrease the rate etc.) which may decrease the rate at which that person is entitled to that tax credit or means that that person ceases to be entitled to that tax credit.

(3) The time prescribed by this paragraph is the period of three months beginning on the date on which the change of circumstances occurs.”.

(5) In regulation 25 (date of notification – cases where a change of circumstances which may increase the maximum rate)(8), after paragraph (3) insert—

“(4) Where the claimant is a critical worker, this regulation does not apply for the period beginning on 23rd May 2020 and ending on the date on which the Coronavirus Job Retention Scheme ends, but regulation 25A applies during that period.”.

(6) After regulation 25 insert—

“Coronavirus – date of notification – cases where change of circumstances may increase the maximum rate

25A.— (1) This regulation only applies—

(a) for the period beginning on 23rd May 2020 and ending on the date on which the Coronavirus Job Retention Scheme ends; and

(b) if the claimant is a critical worker during that period.

(2) Where—

(a) this regulation applies; and

(b) a notification of change of circumstances which may increase the maximum rate at which a critical worker may be entitled to a tax credit is given in the circumstances prescribed by paragraph (2) of regulation 25 (date of notification – cases where change of circumstances which may increase the maximum rate),

that notification is to be treated as having been given on the date prescribed by paragraph (3).

(3)  The date prescribed by this paragraph is—

(a) the date falling three months before the notification date; or

(b) if later, the date of the change of circumstances.”.

(7) In regulation 26 (date of notification – disability element and severe disability element of working tax credit) after paragraph (3) insert—

“(4) Where the claimant is a critical worker, this regulation does not apply for the period beginning on 23rd May 2020 and ending on the date on which the Coronavirus Job Retention Scheme ends, but regulation 26B applies during that period.”.

(8) In regulation 26A (date of notification - disability element where child is disabled or severely disabled) after paragraph (4)(9) insert—

“(5) Where the claimant is a critical worker, this regulation does not apply for the period beginning on 23rd May 2020 and ending on the date on which the Coronavirus Job Retention Scheme ends, but regulation 26B applies during that period.”.

(9) After regulation 26A insert—

“Coronavirus – date of notification of disability

26B.— (1) This regulation only applies—

(a) for the period beginning on 23rd May 2020 and ending on the date on which the Coronavirus Job Retention Scheme ends; and

(b) if the claimant is a critical worker during that period.

(2) Where—

(a) this regulation applies; and

(b) a notification of a change of circumstances which may increase the maximum rate at which a critical worker may be entitled to working tax credit is given in the circumstances prescribed by paragraph (4),

the notification is to be treated as having been given on the date prescribed by paragraph (5).

(3) Where—

(a) this regulation applies; and

(b) a notification of a change of circumstances which may increase the maximum rate at which a critical worker may be entitled to child tax credit is given in the circumstances prescribed by paragraph (6),

the notification is to be treated as having been given on the date prescribed by paragraph (7).

(4) The circumstances prescribed by this paragraph are where—

(a) a notification is given of a change of circumstances in respect of a claim to working tax credit, which results in the Board making an award of the disability element or the severe disability element of working tax credit (or both of them) in favour of a person or persons; and

(b) the notification date is within three months of the date that a claim for any of the benefits referred to in regulations 9(2) to (8) or 17(2) of the Working Tax Credit Regulations(10) is determined in favour of those persons (or one of them).

(5) The date prescribed by this paragraph is the latest of the following—

(a) the first date in respect of which the benefit claimed was payable;

(b) the date falling three months before the claim for the benefit was made;

(c) the date the claim for working tax credit was made (or treated as made under regulations 7 (time limits for claims) and 7A(11) (time limit for claims – the Childcare Payments Act 2014));

(d) for the purposes of the disability element only, the first date that the person or persons satisfied the conditions of entitlement for the disability element.

(6) The change of circumstances prescribed by this paragraph are where—

(a) a notification is given of a change of circumstances in respect of a claim to child tax credit which results in the Board making an award of the disability element of that tax credit in favour of a person or persons, in respect of a child where that child is disabled or severely disabled; and

(b) the notification date is within three months of the date that a claim for a disability benefit, personal independence payment or armed forces independence payment in respect of the child is determined in favour of those persons (or one of them).

(7) The date prescribed by this paragraph is the latest of the following—

(a) the first date in respect of which the disability benefit, the personal independence payment or the armed forces independence payment was payable;

(b) the date falling three months before the claim for a disability benefit, personal independence payment or armed forces independence payment was made;

(c) the date the claim for child tax credit was made (or treated as made under regulations 7 and 7A).

(8) In this regulation “disability benefit” has the meaning given by regulation 26A(4).”.

(1)

S.I. 2002/2014, relevant amending instruments are S.I. 2003/723, 2004/762, 2009/697, 2012/848, 2013/388, 2013/591, 2015/669, 2017/997 and 2020/297.

(2)

Regulation 2 has been amended by regulation 3 of S.I. 2013/388 and by paragraph 27 of the Schedule to S.I. 2013/591.

(3)

A copy of this Guidance can be found at https://www.gov.uk/government/publications/coronavirus-covid-19-maintaining-educational-provision/guidance-for-schools-colleges-and-local-authorities-on-maintaining-educational-provision . A hard copy is available for inspection, free of charge, at the offices of HMRC at 10 South Colonnade, Canary Wharf, London E14 4PH.

(4)

A copy of this Guidance can be found at https://www.gov.scot/publications/coronavirus-guide-schools-early-learning-closures/pages/key-workers/. A hard copy is available for inspection, free of charge, at the offices of HMRC at 10 South Colonnade, Canary Wharf, London E14 4PH.

(5)

A copy of this Guidance can be found at https://gov.wales/coronavirus-key-critical-workers. A hard copy is available for inspection, free of charge, at the offices of HMRC at 10 South Colonnade, Canary Wharf, London E14 4PH.

(6)

A copy of this Guidance can be found at https://www.education-ni.gov.uk/general-guidance-covid-19-schools. A hard copy is available for inspection, free of charge, at the offices of HMRC at 10 South Colonnade, Canary Wharf, London E14 4PH.

(7)

Regulation 21 has been relevantly amended by regulation 4 of S.I. 2003/723 and regulation 5 of S.I. 2012/848.

(8)

Regulation 25 has been amended by regulation 3 of S.I. 2003/723, regulation 17 of S.I. 2009/697 and regulation 5 of S.I. 2012/848.

(9)

Regulation 26A was inserted by regulation 3 of S.I. 2004/762 and subsequently substituted by regulation 19 of S.I, 2009/697. It has subsequently been amended by regulation 5 of S.I. 2012/848, paragraph 31 of the Schedule to S.I. 2013/388, paragraph 27 of the Schedule to S.I. 2013/591, regulation 4 of S.I. 2015/669 and regulation 5 of S.I. 2020/297, which instrument also amended the title of the regulation and inserted paragraph (4).

(10)

This term is defined in regulation 2 of the Tax Credits (Claims and Notification) Regulations 2002 as the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002.

(11)

Regulation 7A was inserted by regulation 2 of S.I. 2015/669 and has been amended by regulation 2 of S.I. 2017/997.