The Childcare (Free of Charge for Working Parents) (England) Regulations 2022

Minimum income requirement

18.—(1) A person meets the minimum income requirement if the amount of income the person expects to earn from qualifying paid work in the relevant period is an amount of income equal to or greater than the product of—

(a) the minimum weekly income, and

(b) the number of weeks in the relevant period.

(2) The person may include the amount of income the person expects to earn as—

(a) an employee,

(b) a self-employed person, or

(c) an employee and a self-employed person.

(3) In this regulation—

“income” means—

(a)

in relation to an employee—

(i)

any earnings within the meaning given in section 62 of the Income Tax (Earnings and Pensions) Act 2003, and

(ii)

any amount treated as earnings under Chapters 7 to 10 of Part 2 of the Income Tax (Earnings and Pensions) Act 2003 (which relate to agency workers and workers’ services provided through intermediaries or managed service companies);

(b)

in relation to a self-employed person—

(i)

the amount of non-capital receipts the person expects to derive from a trade, profession or vocation less the amount of non-capital expenses the person expects to incur wholly and exclusively for the purposes of the trade, profession or vocation, or

(ii)

if the person carries on a trade, profession or vocation in a business partnership, the share expected to be allocated to the person of the partnership’s non-capital receipts less the share expected to be allocated to that person of the partnership’s non-capital expenses incurred wholly and exclusively for the purposes of the trade, profession or vocation;

“minimum weekly income” means, in relation to a person, the product of—

(a)

16, and

(b)

the hourly rate of the national minimum wage to which the person is entitled to be paid under the National Minimum Wage Act 1998(1);

“non-capital” means not of a capital nature;

“relevant period” means one of the following—

(a)

in the case of income as an employee, the period of three months beginning with the day on which the declaration relating to the employee is made;

(b)

in the case of income as a self-employed person, any of the following—

(i)

the period mentioned in paragraph (a);

(ii)

the relevant tax year;

(c)

in the case of income as an employee and a self-employed person, the period mentioned in paragraph (a).

(1)

1998 c. 39.