The Tax Credits (Payment by Employers) Regulations 1999

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which are made under section 6 of the Tax Credits Act 1999 and come into force on 6th April 2000, specify the circumstances in which certain employers shall make payments of working families' tax credit and disabled person’s tax credit (“tax credit”) to certain of their employees, and also provide the machinery for such payments and for recovery of sums provided by the Commissioners of Inland Revenue (“the Board”) for the purpose of such payments.

Regulation 1 provides for citation and commencement, and regulations 2 and 3 contain definitions.

Regulation 4 specifies the circumstances in which notification to commence payment of tax credit to a particular employee shall be given to an employer.

Regulation 5 provides for notification to the employee that payment of tax credit will be made by an employer for a specified period.

Regulation 6 sets out an employer’s obligations following receipt of notification from the Board that he is to make payment of tax credit to an employee.

Regulation 7 specifies how an employer should fund payment of tax credit to an employee.

Regulation 8 sets out the circumstances in which an employer may make application to the Board for funds to make payment of tax credit, and also provides the machinery for such applications.

Regulation 9 provides for the termination of the obligation on the employer to make payment of tax credit to an employee prior to the termination date contained in the start notification.

Regulations 10 and 11 specify the obligations on an employer, an employee and the Board respectively following the termination of the obligation on the employer to make payment of tax credit to an employee prior to the termination date contained in the start notification.

Regulations 12 and 13 provide for the formal determination and recovery by the Board of funds provided to an employer to enable him to make payment of tax credit to an employee.

Regulation 14 makes provision for the production and inspection of employers' records relating to the payment of tax credits to their employees, to and by officers of the Board.