Overview of the Structure of the Act
18.The Act consists of 75 sections which are laid out as follows:
sections 1 and 2 provide an overview of the scheme and define the term ‘qualifying childcare’ for the purposes of the scheme;
sections 3 to 5 define the terms ‘eligible person’, ‘declaration of eligibility’ and ‘entitlement period’ for the purposes of the scheme;
sections 6 to 13 set out the eligibility conditions which a person must meet to be entitled to receive Government support;
section 14 defines the term ‘qualifying child’ for the purposes of the scheme;
sections 15 to 25 set out the rules which apply to childcare accounts;
sections 26 to 29 give HMRC the power to obtain information or documents relating to the operation of the scheme, including the sharing of information with other bodies;
sections 30 to 34 provide special rules which apply to those who claim tax credits or universal credit;
sections 35 to 41 describe the situations in which top-up payments from Government may be recovered by HMRC;
sections 42 to 48 set out the penalties which can be imposed where the rules of the scheme are breached;
sections 49 to 55 give HMRC further enforcement powers, including the power to charge interest and recover debts;
sections 56 to 61 set out the procedures enabling a person to seek a review of, or to appeal against, a decision made by HMRC;
section 62 contains rules which require HMRC to make compensation payments to a person who has been unable to receive top-up payments to which they were entitled;
sections 63 and 64 provide for the withdrawal of tax relief provided in respect of certain Employer-Supported Childcare schemes;
sections 65 to 68 contain general provisions, including giving HMRC the responsibility for managing the scheme and clarifying that payments from Government are not subject to tax as income in the hands of the individual who receives them; and
sections 69 to 75 are final provisions, including the territorial extent of the Act and its short title.
