The Tax Credits (Miscellaneous Amendments) (No. 2) Regulations 2009

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (“the Entitlement Regulations”), the Tax Credits (Definition and Calculation of Income) Regulations 2002 (“the Income Regulations”) and the Tax Credits (Claims and Notifications) Regulations 2002 (“the Claims Regulations”).

Regulations 2 to 4 amend the Entitlement Regulations.

Regulation 3 amends regulation 11 of the Entitlement Regulations. It amends regulation 11(4) to provide that the second adult element of working tax credit is denied in the case of joint claims made by a couple who are not responsible for a child or qualifying young person and where one claimant is subject to immigration control. It inserts a new regulation 11(5) to provide that this restriction is not applicable to nationals of those countries which are governed by the European Convention on Social and Medical Assistance 1953 or the Council of Europe Social Charter 1961 (Croatia, the former Yugoslav Republic of Macedonia and Turkey). The text of both of these documents may be located at the website of the Treaty Office of the Council of Europe (www.conventions.coe.int).

Regulation 4 amends regulation 14 of the Entitlement Regulations. It makes a technical correction to regulation 14(1A)(d) of the Entitlement Regulations. It amends regulation 14(1A)(e) of the Entitlement Regulations so as to provide that relevant childcare charges which currently do not include charges in respect of care provided by a foster parent in respect of a child whom that foster parent is fostering, will also not include charges in respect of care provided by a foster carer or a kinship carer. It also provides definitions for “foster parent”, “foster carer” and “kinship carer”. It amends the Entitlement Regulations to reflect the replacement of the Fostering of Children (Scotland) Regulations 1996 by the Looked After Children (Scotland) Regulations 2009 with effect from 28 September 2009. Lastly, it removes two references to the definition of a foster parent in Northern Ireland and Wales, which are now superfluous following the insertion of a general definition of “foster parent”.

Regulations 5 to 7 amend the Income Regulations.

Regulation 6 amends Table 1 in regulation 4, which lists payments and benefits that are disregarded in the calculation of employment income. It inserts a new sub-paragraph which provides that payments by the Department for Work and Pensions under its Future Capital pilot scheme are disregarded in calculating employment income.

Regulation 7 introduces changes to Tables 6 and 7 of regulation 19 of the Income Regulations, which provide that mandatory top-up payments and payments of child care expenses under the Steps to Work programme in Northern Ireland are disregarded in calculating income.

Regulation 8 amends the Claims Regulations. It alters various references in those Regulations from either “three months” or “3 months” to “93 days”.

A full Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.