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

Change of circumstances

16.—(1) There is a relevant change in circumstances if—

(a) there is any change in the child care provided during the period of an award; or

(b) the relevant child care charges—

(i) exceed the average weekly charge calculated in accordance with regulation 15 by £10 a week or more;

(ii) are less than the average weekly charge calculated in accordance with regulation 15 by £10 a week or more; or

(iii) are nil.

If there is a relevant change in circumstances, the amount of the child care element of working tax credit shall be recalculated with effect from the specified date.

(2) For the purposes of paragraph (1), the weekly relevant child care charge is the aggregate of the weekly charge paid for child care for each child in respect of whom charges are incurred in each of the four consecutive weeks in which the change occurred.

(3) If in any case the charges in respect of child care are paid monthly, the weekly relevant child care charge for the purposes of paragraph (1) is established—

(a) where the charges are for a fixed monthly amount, by multiplying that amount by 12 and dividing the product by 52; or

(b) where the charges are for variable monthly amounts, by aggregating the charges for the previous 12 months and dividing the total by 52.

(4) In a case where there is insufficient information for establishing the weekly relevant child care charge paid for child care in accordance with paragraphs (2) and (3), an officer of the Board shall estimate the charge—

(a) in accordance with information provided by the person or persons incurring the charges; and

(b) by any method which in the officer’s opinion is reasonable.

(5) For the purpose of paragraph (1) the specified date is—

(a) where the child care charges are increased, the later of—

(i) the first day of the week in which the change occurred, and

(ii) the first day of the week in which falls the day which is three months prior to the date notification of the change is given;

(b) where the child care charges are decreased, the first day of the week following the four consecutive weeks in which the change occurred.