Legalize / United Kingdom / Public General Act

Childcare Payments Act 2014

Type Public General Act

Publication 2014-12-17

State In force

Department Statute Law Database

Source legislation.gov.uk

Reform history JSON API

Introductory

Termination of tax credit awards

1

(1) This Act contains provision for HMRC to make payments (“top-up payments”) to be used towards the costs of qualifying childcare.

For the meaning of “qualifying childcare”, see section 2.

(2) A person is entitled to receive a top-up payment for an entitlement period in respect of a child if—

(a) the person is an eligible person for the entitlement period (see section 3),

(b) the person has made a valid declaration of eligibility for the entitlement period (see section 4),

(d) the person holds a childcare account in respect of the child (see section 15), and

(e) a qualifying payment is made into the childcare account during the entitlement period (see section 19).

(3) HMRC must pay the top-up payment into the childcare account.

(4) The amount of the top-up payment is 25% of the amount of the qualifying payment.

(For provision limiting the amount of qualifying payments that may be made into a childcare account in an entitlement period, see section 19(4).)

(5) Regulations may amend subsection (4) so as to substitute a different percentage for the percentage for the time being specified there.

(6) Sections 17 to 25 contain provision about childcare accounts, including restrictions on the kinds of payments that may be made from childcare accounts.

(7) Sections 26 to 29 contain provision about obtaining and sharing information.

(8) Sections 30 to 34 contain special rules about persons who are claiming tax credits or universal credit.

(9) Sections 35 to 55 contain provision about penalties and other enforcement powers, including powers to recover top-up payments in certain circumstances.

(10) Sections 56 to 61 contain provision about reviews and appeals.

(11) Section 62 contains provision enabling HMRC in certain circumstances to compensate persons who have been deprived of the opportunity to receive top-up payments.

(12) Sections 63 and 64 contain provision for the withdrawal of tax exemptions in respect of certain kinds of employer-provided childcare schemes.

Qualifying childcare

2

(1) In this Act “childcare” means any form of care or supervised activity for a child that is not provided in the course of the child's compulsory education.

(2) Childcare that is provided for a person is “qualifying childcare” for the purposes of this Act if—

(a) it is registered or approved childcare, and

(b) the main reason, or one of the main reasons, for incurring the costs of the childcare is—

(i) to enable the person to work, or

(ii) where the person has a partner, to enable both the person and the person's partner to work.

(3) Regulations may—

(a) make provision about what is, or is not, to be regarded as registered or approved childcare for the purposes of this section;

(b) define what is meant by “work” for the purposes of this section;

(d) specify cases where that condition does not need to be met.

(4) Regulations made under subsection (3)(a) may, in particular, provide that childcare provided outside the United Kingdom is registered or approved childcare if it is provided by a person approved by an organisation that is accredited by a person or body under an enactment.

(5) Subsection (2) is subject to any direction made under section 50 (which enables HMRC in certain circumstances to direct that childcare provided by a person is not qualifying childcare).

Eligibility

Eligible persons

3

(1) A person is an eligible person for an entitlement period if—

(a) the person meets the conditions of eligibility in sections 6 to 13, and

(b) in a case where the person has a partner, the person's partner meets the conditions of eligibility in sections 9 to 13.

(2) In sections 6 to 13 “the date of the declaration” means the day on which the person makes a declaration of eligibility for the entitlement period (see section 4).

(3) Sections 6 to 13 need to be read with—

(a) regulations made under them, and

(b) regulations made under subsection (4).

(4) Regulations may provide for exceptions to the requirement for any of the conditions of eligibility in sections 6 to 13 to be met by a person.

(5) Regulations may make provision about when a person is, or is not, to be regarded as another person's partner for the purposes of this Act.

Declarations of eligibility

4

(1) For the purposes of this Act a “declaration of eligibility” is a statement made by a person for an entitlement period which states that the person is an eligible person for the entitlement period.

(2) A declaration of eligibility made by a person for an entitlement period is “valid” for the purposes of this Act if—

(a) HMRC are satisfied that the person is an eligible person for the entitlement period,

(b) on the day on which the declaration is made, there is no other person who—

(i) holds an active childcare account in respect of the relevant child (see subsection (4)), or

(ii) is seeking to hold an active childcare account in respect of that child (see subsection (5)), and

(3) But subsection (2)(b) does not apply for the purpose of determining whether a declaration of eligibility made for the purposes of opening a childcare account is valid (see instead section 17(2)(c)).

(4) In subsection (2)(b) “the relevant child” means the child in respect of whom the person making the declaration holds a childcare account.

For what is meant by an “active” childcare account, see section 17(3).

(5) For the purposes of this section a person is “seeking to hold an active childcare account” if—

(a) the person has applied to open a childcare account and the application has not yet been determined,

(b) the person has made a valid declaration of eligibility for an entitlement period which has not yet begun, or

(c) the person has made a declaration of eligibility for an entitlement period which, if valid, would result in the person holding an active childcare account for that period.

(6) Regulations may make further provision about declarations of eligibility, including, in particular—

(a) provision specifying, or enabling HMRC to specify, information which a person making a declaration of eligibility is required to provide to HMRC;

(b) provision specifying, or enabling HMRC to specify, the form and manner in which declarations of eligibility may be made;

(d) provision about the consequences of making a declaration of eligibility—

(i) after the beginning of the entitlement period for which it is made, or

(ii) at such other time as may be specified;

(e) provision for any consequences specified by virtue of paragraph (d) not to apply in specified circumstances or if specified conditions are met;

(f) provision specifying circumstances in which a person, or a person of a specified description, may make a declaration of eligibility on another person's behalf, including provision enabling HMRC to appoint a person for that purpose;

(g) provision treating things done, or omitted to be done, by a person who makes a declaration of eligibility on another person's behalf as having been done, or omitted, by that other person.

(7) In subsection (6) “specified” means specified in the regulations.

Entitlement periods

5

(1) The length of an entitlement period is 3 months.

This is subject to the following provision.

(2) Regulations may—

(a) amend subsection (1) so as to alter the length of an entitlement period, and

(b) in consequence of any provision made under paragraph (a), amend any reference in this Act to a period which begins on the day on which a declaration of eligibility is made and is the same length as an entitlement period.

(3) Regulations may make further provision about entitlement periods, including, in particular—

(a) provision for determining when entitlement periods are to begin or end, and

(b) provision enabling HMRC, in circumstances specified in the regulations, to vary the length of an entitlement period in particular cases.

(4) Provision made by virtue of subsection (3)(b) may not enable HMRC to vary the length of an entitlement period by more than 2 months .

Conditions of eligibility

The person must be 16 or over

6

A person meets the condition of eligibility in this section if the person is at least 16 years old on the date of the declaration.

The person must be responsible for the child

7

(1) A person meets the condition of eligibility in this section if, at the date of the declaration, the person is responsible for the relevant child.

(2) In subsection (1) “the relevant child” means the child in respect of whom the person holds, or wishes to open, a childcare account.

(3) Regulations may make provision as to the circumstances in which a person is, or is not, to be regarded as responsible for a child for the purposes of this Act.

The person must be in the UK

8

(1) A person meets the condition of eligibility in this section if the person is in the United Kingdom on the date of the declaration.

(2) Regulations may—

(a) specify circumstances in which a person is to be treated as being, or not being, in the United Kingdom;

(b) specify circumstances in which temporary absence from the United Kingdom is disregarded;

(c) modify the application of this Act in relation to persons of a specified description who are treated as being in the United Kingdom for the purposes of this Act.

(3) In subsection (2) “specified” means specified in the regulations.

The person and his or her partner must be in qualifying paid work

9

(1) A person meets the condition of eligibility in this section if the person is in qualifying paid work on the date of the declaration.

(2) Regulations may—

(a) make provision as to what is, or is not, qualifying paid work, and

(b) specify circumstances in which a person is, or is not, to be regarded as in such work.

(3) Regulations under subsection (2) may, in particular—

(a) make provision for calculating a person's expected income from any work for a period specified in the regulations,

(b) provide that a person is in qualifying paid work only if the person's expected income from the work for the period, taken together with the person's expected income from any other work for the period, is greater than or equal to an amount specified in, or determined in accordance with, the regulations, and

The income of the person and his or her partner must not exceed limit

10

(1) A person meets the condition of eligibility in this section if, at the date of the declaration, the person's expected income for the relevant tax year is not greater than an amount specified in, or determined in accordance with, regulations for the purposes of this section.

(2) Regulations may make provision for calculating a person's expected income for a tax year.

(3) Regulations may provide that a person is treated as meeting the condition of eligibility in this section (whether or not any provision has been made under subsection (1)) if the person does not expect to pay income tax at the additional rate or the dividend additional rate for the relevant tax year.

(4) Regulations may provide that a person is treated as not meeting the condition of eligibility in this section in any of the following cases—

(a) if the person has made, or expects to make, a claim under section 809B of the Income Tax Act 2007 (claim for remittance basis to apply) for the relevant tax year;

(b) if the person expects section 809E of that Act (application of remittance basis in certain cases without claim) to apply to the person for the relevant tax year;

(5) In this section “the relevant tax year”, in relation to a declaration of eligibility, means the tax year in which the date of the declaration falls.

Neither the person nor his or her partner may be claiming universal credit

11

(1) A person meets the condition of eligibility in this section if, at the date of the declaration—

(a) universal credit is not payable to the person in respect of any relevant assessment period (see subsection (2)), and

(b) there is no subsisting claim that would result in universal credit becoming payable to the person in respect of a relevant assessment period.

(2) In subsection (1) “relevant assessment period”, in relation to a declaration of eligibility, means any assessment period (within the meaning of the relevant legislation) that includes—

(a) the date of the declaration, or

(b) the whole or any part of the entitlement period for which the declaration is made.

(3) For the purposes of subsection (1) universal credit is payable to a person in respect of a relevant assessment period if it would be so payable but for the reduction of the award of universal credit to nil under the relevant legislation.

(4) In the case of a declaration of eligibility made for the purposes of opening a childcare account, the reference in subsection (2) to the entitlement period for which the declaration is made is to be read as a reference to the period of 3 months beginning with the date of the declaration.

(5) Regulations may specify other circumstances in which a person is to be treated as meeting, or not meeting, the condition of eligibility in this section.

(6) In this section “the relevant legislation” means—

(a) Part 1 of the Welfare Reform Act 2012, or

(b) any provision made for Northern Ireland which corresponds to that Part of that Act.

The person and his or her partner must not be in a relevant childcare scheme

12

(1) A person (“P”) meets the condition of eligibility in this section if, at the date of the declaration—

(a) P is not an eligible employee in relation to a relevant childcare scheme (see subsections (2) and (3)),

(b) in a case where the declaration is made for the purposes of opening a childcare account, P intends to give P's employer a childcare account notice (see subsection (4)) before the end of the period of 3 months beginning with the date of the declaration, or

(i) the declaration is not made for the purposes of opening a childcare account, and

(ii) P is a new partner of the person making the declaration (see subsection (5)),

P intends to give P's employer a childcare account notice before the end of the entitlement period for which the declaration is made.

(2) “Relevant childcare scheme” means—

(a) a scheme under which qualifying childcare vouchers (within the meaning of section 270A of ITEPA 2003) are provided for employees, or

(b) a scheme under which care for a child is provided for employees in circumstances in which conditions A to D in section 318A of ITEPA 2003 are met.

(3) “Eligible employee”—

(a) in relation to a scheme within subsection (2)(a), has the meaning given by section 270AA of ITEPA 2003, and

(b) in relation to a scheme within subsection (2)(b), has the meaning given by section 318AZA of that Act.

(4) “Childcare account notice”, in relation to a person who is an eligible employee in relation to a relevant childcare scheme, means a written notice informing the employer that the employee wishes to leave the scheme in order to be able to open a childcare account or enable the employee's partner to do so.

(5) For the purposes of this section P is a person's new partner at the date of the declaration made by the person if P has not been the person's partner at any time when the person has previously made a valid declaration of eligibility.

(6) For provision enabling HMRC to recover top-up payments where P fails to give P's employer a childcare account notice as mentioned in subsection (1)(b) or (c), see section 39.

Neither the person nor his or her partner may be receiving other childcare support

13

(1) A person meets the condition of eligibility in this section if, at the date of the declaration—

(a) no other relevant childcare support is payable to the person in respect of any relevant period, and

(b) the person has not made, and does not intend to make, a claim that would result in any other relevant childcare support becoming payable to the person in respect of any relevant period.

(2) “Other relevant childcare support” means any payments towards the costs of childcare which are made out of funds provided by a national authority, other than—

(a) payments under this Act, or

(b) payments of a description specified in regulations.

(3) In subsection (2) “national authority” means any of the following—

(a) a Minister of the Crown (within the meaning of the Ministers of the Crown Act 1975);

(b) the Scottish Ministers;

(d) a Northern Ireland department.

(4) “Relevant period”, in relation to a declaration of eligibility, means a period which—

(a) includes the date of the declaration,

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.