The Tax Credits Schemes (Miscellaneous Amendments) (Northern Ireland) Regulations 1999

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which come into force on 5th October 1999, amend the Family Credit (General) Regulations (Northern Ireland) 1987 (S.R. 1987 No. 463) (“the Family Credit Regulations”), and the Disability Working Allowance (General) Regulations (Northern Ireland) 1992 (S.R. 1992 No. 78) (“the Disability Working Allowance Regulations”). The principal effects of the amendments are to provide that relevant childcare charges are an independent element in the calculation of maximum working families' tax credit, and maximum disabled person’s tax credit (rather than a deduction from a claimant’s income on a weekly basis), and to increase certain financial limits for the purposes of working families' tax credit and disabled person’s tax credit.

Regulation 1 provides for citation, commencement and effect.

Regulation 2 provides for interpretation.

Regulation 3 inserts new definitions, and substitutes a new definition of “disabled person’s tax credit” for the former definition of “disability working allowance”, in the Family Credit Regulations.

Regulation 4 provides for an extension of the rule for the rounding up of fractions in regulation 12 of the Family Credit Regulations.

Regulations 5 to 7(2) provide that relevant childcare charges cease to be a deduction from a claimant’s income on a weekly basis (which, in so far as it exceeds the amount specified in regulation 47 of the Family Credit Regulations, is offset, on a percentage basis, against maximum working families' tax credit), and become an independent element (“childcare tax credit”) in the determination of maximum working families' tax credit.

Regulation 7(3) provides that the maximum relevant childcare charges are increased–

(a) from £60 to £100 per week, where there is one child in respect of whom relevant childcare charges are paid; and

(b) from £100 to £150 per week, where there is more than one such child.

Regulation 8 increases the age limit for relevant childcare charges, from 12 years to 15 years (or 16 years in the case of a disabled child).

Regulation 9 provides that the “applicable amount” (the highest amount at which a claimant’s income on a weekly basis does not reduce the maximum working families' tax credit) is increased from £80.65 to £90.00.

Regulation 10 provides that the percentage of a claimant’s income on a weekly basis, in excess of the “applicable amount” in regulation 47(1) of the Family Credit Regulations, which reduces the maximum working families' tax credit, is reduced from 70% to 55%.

Regulation 11 revokes regulation 51A of the Family Credit Regulations.

Regulation 12 increases the weekly maintenance payments, which are disregarded for the purposes of calculating a claimant’s income (other than earnings) from £15 to the whole amount.

Regulation 13 makes a small consequential drafting amendment.

Regulations 14 to 19, 21–22, and 24–25 make equivalent amendments for disabled person’s tax credit, to those made for working families' tax credit by regulations 3 to 8, 10–11 and 12–13, respectively.

Regulation 20 provides that the “applicable amount” (the highest amount at which a claimant’s income on a weekly basis does not reduce the maximum disabled person’s tax credit) is increased to £70 for a claimant who is single, and £90 for a member of a married or unmarried couple, or a lone parent.

Regulation 23 makes an amendment consequential to section 14 of the Tax Credits Act 1999.

Regulation 26 amends references in the Family Credit Regulations and the Disability Working Allowance Regulations, from “family credit” to “working families' tax credit”, and from “disability working allowance” to “disabled person’s tax credit”, with other minor drafting changes.

Regulation 27 amends references in the Family Credit Regulations and the Disability Working Allowance Regulations to take account of provisions for decisions and appeals relating to social security benefits contained in the Social Security (Northern Ireland) Order 1998 (S.I. 1998/1506 (N.I. 10)).