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

PART 1 U.K. GENERAL

Citation, commencement and effect U.K.

1.  These Regulations may be cited as the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 and shall come into force—

(a) for the purpose of enabling claims to be made, on 1st August 2002;

(b) for the purpose of enabling decisions on claims to be made, on 1st January 2003; and

(c) for all other purposes, on 6th April 2003;

and shall have effect for the tax year beginning on 6th April 2003 and subsequent tax years.

Interpretation U.K.

2.—(1) In these Regulations, except where the context otherwise requires—

• “the Act” means the Tax Credits Act 2002, and a reference without more to a numbered section is a reference to the section of the Act bearing that number;

• [F1 “armed forces independence payment’’ means armed forces independence payment under the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011;]

• “the Board” means the Commissioners of Inland Revenue;

• “the Contributions and Benefits Act” means the Social Security Contributions and Benefits Act 1992 M1 ;

• “child” has the same meaning as it has in the Child Tax Credit Regulations 2002 M2 ;

• “claim” means a claim for working tax credit and “joint claim” and “single claim” have the meanings respectively assigned in [F2 section 3(8)];

• “claimant” means the person making a claim and, in the case of a joint claim, means either of the claimants;

• [F3 “contributory employment and support allowance” means a contributory allowance under Part 1 of the Welfare Reform Act] [F4 (“the 2007 Act”) as amended by the provisions of Schedule 3, and Part 1 of Schedule 14, to the Welfare Reform Act 2012 that remove references to an income-related allowance, and a contributory allowance under Part 1 of the 2007 Act as that Part has effect apart from those provisions];

• [F5 “coronavirus” means severe acute respiratory syndrome coronavirus 2;]

• [F5 “Coronavirus Job Retention Scheme” means the scheme of that name established under the direction given by the Chancellor of the Exchequer under section 76 of the Coronavirus Act 2020 on 15th April 2020 (as that Scheme has effect from time to time);]

• [F5 “coronavirus-impacted worker” has the meaning given by regulation 7E(3); and]

• [F6 “couple” has the meaning given by section 3(5A) of the Act]

• “the determination of the maximum rate” means the determination of the maximum rate of working tax credit;

• [F7 “employed”, except in the expression “self-employed”, means employed under a contract of service or apprenticeship where the earnings under the contract are chargeable to income tax as employment income under Parts 2 to 7 of the Income Tax (Earnings and Pensions) Act 2003] [F8 otherwise than by reason of Chapter 8 of Part 2 of that Act (deemed employment in respect of arrangements made by intermediaries).];

• [F9 “employment zone” means an area within Great Britain—

  (a)

  subject to a designation for the purposes of the Employment Zones Regulations 2003 by the Secretary of State, or

  (b)

  [F10 listed in the Schedule to the Employment Zones (Allocation to Contractors) Pilot Regulations 2006]

  pursuant to section 60 of the Welfare Reform and Pensions Act 1999;]

• “employment zone programme” means a programme which is—

  (a)

  established for one or more employment zones, and

  (b)

  designed to assist claimants for a jobseeker’s allowance to obtain sustainable employment;

• [F5 “furloughed employee under the Coronavirus Job Retention Scheme” means a person who is within paragraph 6.1 of the Schedule to the direction given by the Chancellor of the Exchequer under section 76 of the Coronavirus Act 2020 [F11 or a person who is within paragraph 10.1 of the Schedule to the further direction given by the Chancellor under section 76 of that Act on 25th June 2020];]

• [F12 “initial claim” shall be construed in accordance with regulation 9A;]

• [F13 “limited capability for work credit” refers to a credit under regulation 8B(1) of the Social Security (Credits) Regulations 1975 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;]

• “local authority” means—

  (a)

  in relation to England, the council of a county or district, a metropolitan district, a London Borough, the Common Council of the City of London or the Council of the Isles of Scilly;

  (b)

  in relation to Wales, the council of a county or county borough; or,

  (c)

  in relation to Scotland, a council constituted under section 2 of the Local Government, etc. (Scotland) Act 1994 M3 ;

• [F14 “partner” means a member of a F15 ... couple making a joint claim;]

• “patient” means a person (other than a person who is serving a sentence, imposed by a court, in a prison or youth custody institution or, in Scotland, a young offenders’ institution) who is regarded as receiving free in-patient treatment within the meaning of the Social Security (Hospital In-Patients) Regulations [F16 2005];

• “period of award” shall be construed in accordance with [F17 section 5];

• [F18 “personal independence payment” means personal independence payment under Part 4 of the Welfare Reform Act 2012;]

• “qualifying young person” means a person who satisfies regulation 5 of the Child Tax Credit Regulations 2002;

• “relevant child care charges” has the meaning given by regulation 14;

• [F19 “Scottish disability assistance” means a payment made by the Scottish ministers under section 31 of the Social Security (Scotland) Act 2018;]

• F20 ...

• [F21 “self-employed” means engaged in carrying on a trade, profession or vocation on a commercial basis and with a view to the realisation of profits, either on one’s own account or as a member of a business partnership and the trade, profession or vocation is organised and regular;]

• “sports award” means an award made by one of the Sports Councils named in section 23(2) of the National Lottery etc. Act 1993 M4 out of sums allocated to it for distribution under that section;

• “surrogate child” means a child in respect of whom an order has been made under section 30 of the Human Fertilisation and Embryology Act 1990 M5 [F22 (parental orders) or section 54 of the Human Fertilisation and Embryology Act 2008 (parental orders)];

• F20 ...

• “training allowance” means an allowance (whether by way of periodical grants or otherwise) payable—

  (a)

  out of public funds by a Government department or by or on behalf of the Secretary of State, Scottish Enterprise or Highlands and Islands Enterprise or the Department for [F23 Communities or the Department for the Economy] (“the relevant paying authority”);

  (b)

  to a person in respect of his maintenance or in respect of a member of his family; and

  (c)

  for the period, or part of the period, during which he is following a course of training or instruction—

  (i)

  provided by, or in pursuance of arrangements made with, the relevant paying authority, or

  (ii)

  approved by the relevant paying authority in relation to him,

  but does not include an allowance, paid by a Government department, Northern Ireland department or the Scottish Executive to or in respect of a person by reason of the fact that he is training as a teacher, or is following a course of full-time education, other than under arrangements made under section 2 of the Employment and Training Act 1973 M6 , section 2 or 3 of the Disabled Persons (Employment) Act (Northern Ireland) 1945 M7 , or section 1(1) of the Employment and Training Act (Northern Ireland) 1950 M8 ;

• [F24 “training for work” shall be construed in accordance with regulation 9B;]

• “week” means a period of seven days beginning with midnight between Saturday and Sunday.

• [F25 “the Welfare Reform Act” means the Welfare Reform Act 2007.]

(2) For the purposes of these Regulations a person is responsible for a child or qualifying young person if he is treated as being responsible for that child or qualifying young person in accordance with the rules contained in regulation 3 of the Child Tax Credit Regulations 2002.

(3) A reference in these Regulations to an enactment applying to Great Britain but not to Northern Ireland shall, unless the context otherwise requires, include a reference to the corresponding enactment applying in Northern Ireland.

[F26 (4) In these Regulations as they apply to an office a reference to being employed includes a reference to being the holder of an office.]

[F27 (5) For the purpose of these Regulations—

(a) two or more periods of entitlement to employment and support allowance are linked together if they satisfy the conditions in regulation 145 of the Employment and Support Allowance Regulations 2008 [F28 or regulation 86 of the Employment and Support Allowance Regulations 2013] ; and

(b) a period of entitlement to employment and support allowance is linked together with a period of entitlement to statutory sick pay if it follows that period within 12 weeks.]

Textual Amendments

F1 Words in reg. 2(1) inserted (8.4.2013) by The Armed Forces and Reserve Forces Compensation Scheme (Consequential Provisions: Subordinate Legislation) Order 2013 (S.I. 2013/591), art. 2(2), Sch. para. 24(2)

F2 Words in reg. 2(1) substituted (6.4.2003) by The Working Tax Credit (Entitlement and Maximum Rate) (Amendment) Regulations 2003 (S.I. 2003/701), regs. 1, 3(2)

F3 Words in reg. 2(1) inserted (E.W.S) (27.10.2008) by The Employment and Support Allowance (Consequential Provisions) (No. 3) Regulations 2008 (S.I. 2008/1879), regs. 1(1), 20(2)(a)(i)

F4 Words in reg. 2(1) inserted (29.4.2013) by The Universal Credit (Consequential, Supplementary, Incidental and Miscellaneous Provisions) Regulations 2013 (S.I. 2013/630), regs. 1(2), 77(2)(a)

F5 Words in reg. 2 inserted (23.5.2020) by The Tax Credits (Coronavirus, Miscellaneous Amendments) Regulations 2020 (S.I. 2020/534), regs. 1, 2(2)

F6 Words in reg. 2(1) substituted (5.12.2005) by The Civil Partnership Act 2004 (Tax Credits, etc.) (Consequential Amendments) Order 2005 (S.I. 2005/2919), arts. 1, 2(2)(a)

F7 Words in reg. 2(1) substituted (6.4.2003) by The Working Tax Credit (Entitlement and Maximum Rate) (Amendment) Regulations 2003 (S.I. 2003/701), regs. 1, 3(3)

F8 Words in reg. 2 added (26.11.2003) by The Tax Credits (Miscellaneous Amendments No.2) Regulations 2003 (S.I. 2003/2815), regs. 1, 13

F9 Words in reg. 2(1) substituted (6.4.2006) by The Tax Credits (Miscellaneous Amendments) Regulations 2006 (S.I. 2006/766), regs. 1, 20(2)

F10 Words in reg. 2(1) substituted (6.4.2007) by The Tax Credits (Miscellaneous Amendments) Regulations 2007 (S.I. 2007/824), regs. 1, 3

F11 Words in reg. 2 inserted (25.9.2020) by The Tax Credits (Coronavirus, Miscellaneous Amendments) (No. 2) Regulations 2020 (S.I. 2020/941), regs. 1, 3(2)

F12 Words in reg. 2(1) substituted (6.4.2003) by The Working Tax Credit (Entitlement and Maximum Rate) (Amendment) Regulations 2003 (S.I. 2003/701), regs. 1, 3(4)

F13 Words in reg. 2(1) inserted (1.5.2012) by The Tax Credits (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/848), regs. 1(4), 2(2)(a)

F14 Words in reg. 2(1) inserted (6.4.2003) by The Working Tax Credit (Entitlement and Maximum Rate) (Amendment) Regulations 2003 (S.I. 2003/701), regs. 1, 3(5)

F15 Words in reg. 2(1) omitted (5.12.2005) by virtue of The Civil Partnership Act 2004 (Tax Credits, etc.) (Consequential Amendments) Order 2005 (S.I. 2005/2919), arts. 1, 2(2)(b)

F16 Word in reg. 2(1) substituted (6.4.2012) by The Tax Credits (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/848), regs. 1(2), 2(2)(b)

F17 Words in reg. 2(1) substituted (6.4.2003) by The Working Tax Credit (Entitlement and Maximum Rate) (Amendment) Regulations 2003 (S.I. 2003/701), regs. 1, 3(6)

F18 Words in reg. 2(1) inserted (8.4.2013) by The Personal Independence Payment (Supplementary Provisions and Consequential Amendments) Regulations 2013 (S.I. 2013/388), reg. 2, Sch. para. 28(2)

F19 Words in reg. 2(1) inserted (9.12.2021) by The Tax Credits and Child Benefit (Miscellaneous Amendments) Regulations 2021 (S.I. 2021/1286), regs. 1, 2(2)

F20 Words in reg. 2(1) omitted (6.4.2003) by virtue of The Working Tax Credit (Entitlement and Maximum Rate) (Amendment) Regulations 2003 (S.I. 2003/701), regs. 1, 3(7)

F21 Words in reg. 2 substituted (6.4.2015) by The Working Tax Credit (Entitlement and Maximum Rate) (Amendment) Regulations 2015 (S.I. 2015/605), regs. 1, 3

F22 Words in reg. 2(1) inserted (6.4.2010) by The Human Fertilisation and Embryology (Parental Orders) (Consequential, Transitional and Saving Provisions) Order 2010 (S.I. 2010/986), art. 1(1), Sch. para. 7

F23 Words in reg. 2(1) substituted (21.3.2019) by The Tax Credits, Child Benefit and Childcare Payments (Miscellaneous Amendments) Regulations 2019 (S.I. 2019/364), regs. 1, 2(2)

F24 Words in reg. 2(1) inserted (6.4.2003) by The Working Tax Credit (Entitlement and Maximum Rate) (Amendment) Regulations 2003 (S.I. 2003/701), regs. 1, 3(8)

F25 Words in reg. 2(1) inserted (E.W.S) (27.10.2008) by The Employment and Support Allowance (Consequential Provisions) (No. 3) Regulations 2008 (S.I. 2008/1879), regs. 1(1), 20(2)(a)(ii)

F26 Reg. 2(4) inserted (6.4.2003) by The Working Tax Credit (Entitlement and Maximum Rate) (Amendment) Regulations 2003 (S.I. 2003/701), regs. 1, 3(9)

F27 Reg. 2(5) added (E.W.S) (27.10.2008) by The Employment and Support Allowance (Consequential Provisions) (No. 3) Regulations 2008 (S.I. 2008/1879), regs. 1(1), 20(2)(b)

F28 Words in reg. 2(5)(a) inserted (29.4.2013) by The Universal Credit (Consequential, Supplementary, Incidental and Miscellaneous Provisions) Regulations 2013 (S.I. 2013/630), regs. 1(2), 77(2)(b)

Marginal Citations

M1 1992 c.4.

M2 S.I. 2002/2007.

M3 1994 c.39.

M4 1993 c.39.

M5 1990 c.37.

M6 1973 c.50: section 2 was substituted by section 25(1) of the Employment Act 1988 (c.19).

M7 1945 c.6 (N.I.): sections 2 and 3 were amended by section 1 of the Disabled Persons (Employment) Act (Northern Ireland) 1960 (c.4 (N.I.)) and Schedule 18 to the Education and Libraries (Northern Ireland) Order 1986 (S.I. 1986/594 (N.I. 3)).

M8 1950 c.29 (N.I.): section 1 was amended by Article 3 of the Employment and Training (Amendment) (Northern Ireland) Order 1988 (S.I. 1988/1087 (N.I. 10)).

Other elements of working tax credit U.K.

3.—(1) For the purposes of determining the maximum rate of working tax credit, in addition to the basic element and the disability element M9 , the following elements are prescribed—

(a) a 30 hour element;

(b) a second adult element;

(c) a lone parent element;

(d) a child care element; [F29 and]

(e) a severe disability element; F30 ...

F30 (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) It is a condition of entitlement to the other elements of working tax credit that the person making the claim for working tax credit is entitled to the basic element.

(3) If the claim for working tax credit is a joint claim, and both members of the couple satisfy the conditions of entitlement for—

(a) the disability element, [F31 or]

(b) the severe disability element, F32 ...

F32 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

the award must include two such elements.

Textual Amendments

F29 Word in reg. 3(1) inserted (6.4.2012) by The Tax Credits (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/848), regs. 1(2), 2(3)(a)

F30 Reg. 3(1)(f) and word omitted (6.4.2012) by virtue of The Tax Credits (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/848), regs. 1(2), 2(3)(a)(ii)

F31 Word in reg. 3(3) inserted (6.4.2012) by The Tax Credits (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/848), regs. 1(2), 2(3)(b)

F32 Reg. 3(3)(c) and word omitted (6.4.2012) by virtue of The Tax Credits (Miscellaneous Amendments) Regulations 2012 (S.I. 2012/848), regs. 1(2), 2(3)(b)(ii)

Marginal Citations

M9 Subsections (2) and (3) of section 11 of the Act provide that working tax credit shall include the basic element and the disability element, whilst subsection (5) provides for the possibility of including other elements.