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PART 2CONDITIONS OF ENTITLEMENT

Basic element

Entitlement to basic element of Working Tax Credit: qualifying remunerative work

4.—(1) Subject to the qualification in paragraph (2), a person shall be treated as engaged in qualifying remunerative work if, and only if, he satisfies all of the following conditions.

(2) A person who would otherwise satisfy the conditions in paragraph (1) shall not be regarded as engaged in qualifying remunerative work to the extent that he is—

(a)engaged by a charitable or voluntary organisation, or is a volunteer, if the only payment received by him or due to be paid to him is a payment by way of expenses which falls to be disregarded under item 1 in Table 7 in regulation 19 of the Tax Credits (Definition and Calculation of Income) Regulations 2002;

(b)engaged in caring for a person who is not a member of his household but is temporarily residing with him if the only payment made to him for providing that care is disregarded income by virtue of item 3 or 4 in Table 8 in regulation 19 of the Tax Credits (Definition and Calculation of Income) Regulations 2002;

(c)engaged on a scheme for which a training allowance is being paid;

(d)participating in the Intensive Activity Period specified in regulation 75(1)(a)(iv) of the Jobseeker’s Allowance Regulations 1996(1) or the Preparation for Employment Programme specified in regulation 75(1)(a)(v) of the Jobseeker’s Allowance Regulations (Northern Ireland) 1996(2);

(e)engaged in an activity in respect of which—

(i)a sports award has been made, or is to be made, to him, and

(ii)no other payment is made, or is expected to be made, to him; or

(f)participating in an employment zone programme, that is to say a programme established for one or more areas designated pursuant to section 60 of the Welfare Reform and Pensions Act 1999(3), and subject to the Employment Zones Regulations 2000(4) if he receives no payments under that programme other than—

(i)discretionary payments disregarded in the calculation of a claimant’s income under item 6(b) in Table 8 in regulation 19 of the Tax Credits (Definition and Calculation of Income) Regulations 2002; or

(ii)training premiums.

(3) The number of hours for which a person undertakes qualifying remunerative work is—

(a)in the case of an apprentice, employee or office-holder the number of hours of such work which he normally performs—

(i)under the contract of service or of apprenticeship under which he is employed; or

(ii)in the office in which he is employed;

(b)in the case of an agency worker, the number of hours in respect of which remuneration is normally paid to him by an employment agency with whom he has a contract of employment; or

(c)in the case of a person who is self-employed, the number of hours he normally performs for payment or in expectation of payment.

This is subject to the following qualification.

(4) In reckoning the number of hours of qualifying remunerative work which a person normally undertakes—

(a)any period of customary or paid holiday, and

(b)any time allowed for meals or refreshment, unless the person is, or expects to be paid earnings in respect of that time,

shall be disregarded.

Maternity leave

5.  For the purposes of the second and fourth conditions in regulation 4(1) a woman is treated as engaged in qualifying remunerative work for the requisite number of hours during any period for which maternity allowance or statutory maternity pay is paid to her; if she was so engaged (under a contract of service or a contract for services) immediately before the time when that payment began.

Periods for which statutory sick pay payable

6.—(1) For the purposes of the second and third conditions in regulation 4(1), a person is treated as engaged in qualifying remunerative work for the requisite number of hours during any period for which statutory sick pay is paid to him, if he was so engaged immediately before that payment began.

(2) A person who is self-employed is treated as engaged in qualifying remunerative work for the requisite number of hours during any period for which he would have been entitled to statutory sick pay but for the fact that the work he performed in the week immediately before the period began, although done for payment or in expectation of payment, was not performed under a contract of service.

Term time and other seasonal workers

7.—(1) For the purposes of the conditions in regulation 4(1), paragraph (2) applies if a person—

(a)works at a school, other educational establishment or other place of employment,

(b)there is a recognisable cycle to his employment there; and

(c)the length of that recognisable cycle is one year and includes periods of school holidays or similar vacations during which he does not work.

(2) If this paragraph applies, the periods mentioned in paragraph (1)(c) are disregarded in determining whether the conditions in regulation 4(1) are satisfied.

Gaps between jobs

8.  For the purposes of the conditions in regulation 4(1) a person shall be treated as being engaged in qualifying remunerative work for the requisite number of hours if he has been so engaged within the past 7 days.

(1)

S.I. 1996/207. Regulation 75 was substituted by S.I. 1997/2863 and relevant amendments were made by S.I. 2000/721 and 1978 and 2001/1029.

(2)

S.R. 1996 No. 198. Regulation 75 was substituted by regulation 8 of S.R. 1997 No. 541 and paragraph (1)(a)(v) inserted by regulation 5(a) of S.R. 2001 No. 151.

(4)

S.I. 2000/721. Relevant amendments were made by S.I. 2000/1279 and 1305 and 2001/261 and 1865.