Statement by the Delegation of the Russian Federation on the destruction of cultural heritage in the Georgian region of Abkhazia

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.

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

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

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).)

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

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

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

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

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

Sections 56 to 61 contain provision about reviews and appeals.

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

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

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.

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

Regulations may—

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.

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).

A person is an eligible person for an entitlement period if—

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).

Sections 6 to 13 need to be read with—

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.

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.

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.

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

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)).

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).

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

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

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

The length of an entitlement period is 3 months. This is subject to the following provision.

Regulations may—

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

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 .

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.

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

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.

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

Regulations may—

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

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

Regulations may—

Regulations under subsection (2) may, in particular—

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.

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

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.

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

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.

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

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—

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.

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.

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.

In this section “the relevant legislation” means—

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

“Relevant childcare scheme” means—

“Eligible employee”—

“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.

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.

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.

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

“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—

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

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

In the case of a declaration of eligibility made for the purposes of opening a childcare account, any reference in subsection (4) 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.

For the purposes of this Act “qualifying child” means a child of a description specified in regulations.

Regulations under this section may, in particular, specify different descriptions for different periods.

In this Act “childcare account” means an account which—

Each childcare account must be held in respect of one child only.

Regulations may—

Regulations may provide that a person of a specified description may, or may in specified circumstances, manage a childcare account on behalf of the account-holder.

The provision that may be made by regulations under subsection (4) includes—

In subsections (4) and (5) “specified” means specified in the regulations.

Where a contract is entered into by or on behalf of a person who is 16 or 17 years old in connection with a childcare account held by the person, the contract has effect as if the person had been 18 or over when it was entered into.

If the Commissioners so consent, fees may be charged in connection with a childcare account by the account provider.

But the account provider may not charge any fees merely for—

In this Act—

Childcare accounts may be provided by any of the following—

If the Director provides childcare accounts, the Director must in doing so act in accordance with any arrangements made between the Director and the Commissioners with respect to the provision of childcare accounts.

Arrangements made between the Commissioners and a person or body within paragraph (b) or (c) of subsection (1) may include provision for the making of payments by the Commissioners to the person or body in respect of the provision of childcare accounts (and accordingly nothing in section 15(8) or (9) affects the inclusion of such provision in the arrangements).

If the Commissioners provide childcare accounts—

A person who wishes to receive top-up payments (the “applicant”) must make an application to HMRC to open a childcare account.

HMRC may grant the application only if—

For the purposes of this Act a childcare account is “active” at any time if—

Regulations may make further provision about opening a childcare account, including, in particular—

In subsection (4) “specified” means specified in the regulations.

If two or more persons have applied to open a childcare account in respect of the same child, HMRC may determine which of them (if any) may open a childcare account in respect of the child.

If— HMRC may determine which of them (if any) may hold an active childcare account in respect of the child (see section 17(3)).

For provision enabling HMRC to make an account restriction order to give effect to a determination under subsection (2), see section 24.

In this Act “qualifying payment” means any payment made into a childcare account, other than— But for the purposes of paragraph (b) a withdrawal made by the account-holder is not to be regarded as a payment made from a childcare account.

Any person (including the account-holder) may make a qualifying payment into a childcare account during an entitlement period, provided that— This is subject to any provision made by or under this Act.

More than one qualifying payment may be made into a childcare account during an entitlement period.

But the sum of any qualifying payments made into a childcare account in an entitlement period must not exceed the relevant maximum for the entitlement period.

The relevant maximum for an entitlement period is— This is subject to subsection (6).

Regulations may provide, or enable HMRC to provide, that in circumstances specified in the regulations the relevant maximum for an entitlement period is an amount—

Regulations may amend subsection (5) so as to substitute a different amount or amounts for any amount for the time being specified there.

For the purposes of subsection (4), any amount paid into a childcare account at any time during an entitlement period is to be disregarded if at a later time during the entitlement period an equivalent amount is withdrawn from the account by the account-holder.

The account provider must notify HMRC of any qualifying payments made into a childcare account.

In subsection (5) “disabled child” is to be read in accordance with regulations made under section 14(1).

The only payments which the account-holder may authorise to be made from a childcare account are—

In this section “the relevant child”, in relation to a childcare account, means the child in respect of whom the account is held.

A payment within subsection (1) is referred to in this Act as a permitted payment.

A payment made from a childcare account which— is referred to in this Act as a prohibited payment.

Permitted payments may be made from a childcare account in an entitlement period whether or not the account-holder has made a valid declaration of eligibility for the entitlement period.

Where— so much of the payment as is properly attributable to the costs of qualifying childcare for the relevant child is to be treated as a permitted payment, and the remainder is to be treated as a prohibited payment.

Regulations may make provision for determining, for the purposes of subsection (6), how much of a payment is properly attributable to the costs of qualifying childcare for the relevant child.

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

For the purposes of this Act the “top-up element” of any amount is an amount equal to the relevant percentage of that amount.

The “relevant percentage” is the percentage given by— where R is the percentage for the time being specified in section 1(4).

Where the account-holder makes a withdrawal from a childcare account, the account provider must pay the corresponding top-up amount to HMRC from the childcare account.

The “corresponding top-up amount”, in relation to a withdrawal, is R% of the amount of the withdrawal, where R is the percentage for the time being specified in section 1(4).

Accordingly, the maximum amount that may be withdrawn from a childcare account at any time is the relevant percentage of the total amount of funds held in the account at that time.

The “relevant percentage” is the percentage given by— where R is the percentage for the time being specified in section 1(4).

A withdrawal may not be made from a childcare account at any time when a top-up payment is payable into the account.

Where— so much of the payment as is repayable must be repaid by that person into the childcare account.

Where— so much of the repayable amount as exceeds the amount not paid from the childcare account must be repaid by that person into the childcare account.

In a case where— the person must pay the repayable amount to the person or body who was the account provider in relation to the account (“the relevant account provider”).

The relevant account provider must— (For provision about calculating the top-up element of an amount, see section 21.)

If such conditions as may be specified in regulations are met, HMRC may make an account restriction order.

An “account restriction order” is an order imposing any of the following restrictions in relation to a childcare account specified in the order—

Regulations may, in particular, provide that HMRC may make an account restriction order where—

Regulations may make further provision about account restriction orders, including, in particular—

If an account restriction order is made in relation to a childcare account—

Regulations may make provision about closing childcare accounts.

The provision that may be made by regulations under this section includes, in particular—

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

HMRC may by notice in writing require a person of a description specified in regulations to provide information or documents which HMRC require in connection with their functions under this Act.

HMRC may require a person to provide information or a document only if it is in the person's possession or power.

Regulations may make provision about notices under subsection (1), including, in particular—

Subsection (2) applies to information which is held as mentioned in section 18(1) of the Commissioners for Revenue and Customs Act 2005 (confidentiality).

Information to which this subsection applies may be disclosed to any person for use for the purpose of enabling or assisting the exercise of any of the functions of HMRC under this Act.

Information disclosed in reliance on subsection (2) may not be further disclosed to any other person without the authority of the Commissioners (which may be general or specific).

A person who holds information may disclose that information to HMRC if the disclosure is made for the purposes of the exercise by HMRC of their functions under this Act.

This section does not limit the circumstances in which information may be disclosed apart from this section.

In section 127 of the Welfare Reform Act 2012 (information-sharing between Secretary of State and HMRC), in subsection (7), in the definition of “HMRC function”—

If revenue and customs information relating to a person is disclosed in contravention of section 27(3) and the identity of the person— section 19 of the Commissioners for Revenue and Customs Act 2005 (wrongful disclosure) applies in relation to the disclosure as it applies in relation to a disclosure of such information in contravention of section 20(9) of that Act.

“Revenue and customs information relating to a person” has the meaning given by section 19(2) of the Commissioners for Revenue and Customs Act 2005.

In this section “the relevant day”, in relation to a person who has made a declaration of eligibility for an entitlement period, means—

This subsection applies where—

Where subsection (2) applies, the award of the tax credit terminates immediately before the relevant day, regardless of whether the decision on the claim was made before or after the relevant day. This is subject to subsections (4) to (7).

Where a person has made a valid declaration of eligibility for more than one entitlement period beginning during the determination period (see subsection (5)), the award of the tax credit is terminated immediately before the day which is the relevant day in relation to the first of those entitlement periods.

In subsection (4) the “determination period”, in relation to an award of a tax credit, means the period—

Where— subsection (3) does not apply in respect of the award in relation to any entitlement period beginning before the day on which the person is notified of the conclusion on the review.

Where— subsection (3) does not apply in respect of the award in relation to any entitlement period beginning before the day on which the person is notified of the decision on the appeal.

Where an award of a tax credit made to a person is terminated by virtue of this section—

Regulations may make further provision for the purpose of securing that, where a person makes a valid declaration of eligibility, any entitlement of the person, or a person who is the person's partner, to payments under the tax credits legislation ceases immediately before the relevant day.

Regulations under subsection (9) may, in particular—

If— that does not affect anything done by virtue of this section as a result of the making of the declaration.

In this section—

This section ceases to have effect when the repeal of Part 1 of the Tax Credits Act 2002 made by Schedule 14 to the Welfare Reform Act 2012 has fully come into force.

Regulations may make provision for the purpose of securing that, where a person has made a valid declaration of eligibility—

The provision that may be made by regulations under subsection (1) includes—

In subsection (2)(b) “the appropriate national authority” means—

The following is “relevant social security legislation” for the purposes of this section—

This section applies in relation to a person (“P”) if—

In subsection (1)(a) “relevant period”, in relation to an entitlement period, means a period that includes the whole or any part of the entitlement period.

If this section applies in relation to a person, HMRC may give the person a warning notice.

A warning notice is a notice stating that, if this section or section 33 (power to disqualify universal credit claimants from obtaining top-up payments) applies in relation to the person at any time during the period of 4 years beginning with the day on which the notice is given, HMRC may give the person a disqualification notice (see section 34).

Regulations may make provision—

Regulations may amend subsection (1)(d) so as to substitute a different period for the period for the time being specified there.

In this section “joint claim” and “single claim” have the same meaning as in the Tax Credits Act 2002.

This section applies in relation to a person (“P”) if—

In subsection (1)(a) “relevant assessment period”, in relation to an entitlement period, means any assessment period (within the meaning of the relevant legislation) that includes the whole or any part of the entitlement period.

If this section applies in relation to a person, HMRC may give the person a warning notice.

A warning notice is a notice stating that, if this section or section 32 (power to disqualify tax credit claimants from obtaining top-up payments) applies in relation to the person at any time during the period of 4 years beginning with the day on which the notice is given, HMRC may give the person a disqualification notice (see section 34).

Regulations may make provision—

Regulations may amend subsection (1)(d) so as to substitute a different period for the period for the time being specified there.

In this section “the relevant legislation” means—

If— HMRC may give the person a disqualification notice under this section.

Where a person has been given a disqualification notice—

A disqualification notice has effect for the period specified in the notice.

But a disqualification notice may not have effect for a period longer than 3 years.

The period specified in a disqualification notice—

If HMRC give a person a disqualification notice, HMRC must give a copy of the notice to any person or body which provides childcare accounts.

HMRC may revoke a disqualification notice.

This section applies where—

P is liable to pay HMRC an amount equal to the sum of—

The “relevant period” means the period in relation to which the following conditions are met—

The “review period” means the period which—

In subsection (2)(b) the “relevant proportion”, in relation to top-up payments made for an entitlement period, means a proportion equal to the proportion of the entitlement period which falls within the relevant period.

In this section “joint claim” has the same meaning as in the Tax Credits Act 2002.

For provision about terminating an award of a tax credit when a declaration of eligibility is made for a subsequent entitlement period, see section 30.

This section applies where—

P is liable to pay HMRC an amount equal to the sum of—

The “relevant period” means the period in relation to which the following conditions are met—

The “appeal period” means the period which—

In subsection (2)(b) the “relevant proportion”, in relation to top-up payments made for an entitlement period, means a proportion equal to the proportion of the entitlement period which falls within the relevant period.

In this section “joint claim” has the same meaning as in the Tax Credits Act 2002.

For provision about terminating an award of a tax credit when a declaration of eligibility is made for a subsequent entitlement period, see section 30.

This section applies where any of the following decisions has been revised under section 9 of the Social Security Act 1998 or Article 10 of the Social Security (Northern Ireland) Order 1998 (S.I. 1998/1506 (N.I. 10))—

P is liable to pay HMRC an amount equal to the sum of—

The “relevant period” means the period in relation to which the following conditions are met—

The “revision period” means the period which—

In subsection (2)(b) the “relevant proportion”, in relation to top-up payments made for an entitlement period, means a proportion equal to the proportion of the entitlement period which falls within the relevant period.

This section applies where—

In subsection (1) “the appropriate legislation” means any of the following—

P is liable to pay HMRC an amount equal to the sum of—

The “relevant period” means the period in relation to which the following conditions are met—

The “appeal period” means the period which—

In subsection (3)(b) the “relevant proportion”, in relation to top-up payments made for an entitlement period, means a proportion equal to the proportion of the entitlement period which falls within the relevant period.

This section applies where—

In subsection (1)(c) “the relevant period” means—

The person who made the declaration is liable to pay HMRC an amount equal to the sum of any top-up payments made to the person for the entitlement period.

Expressions used in this section and in section 12 have the same meaning in this section as they have in that section.

If— the account-holder is liable to pay HMRC an amount equal to the amount of the top-up payment.

If— the person is liable to pay HMRC an amount not exceeding the top-up element of the prohibited payment.

If a person fails to make a payment in accordance with a requirement imposed by subsections (1) to (3) of section 23 (refunds of payments made from childcare accounts), the person is liable to pay HMRC the top-up element of the payment.

If a prohibited payment is made to a person from a childcare account as a result of the dishonesty of that or some other person, each of those persons is liable to pay HMRC the top-up element of the prohibited payment.

Where— that person (as well as the body corporate) is liable to pay that amount to HMRC.

The persons are—

Where the affairs of a body corporate are managed by its members, subsection (5) applies in relation to the acts and defaults of a member, in connection with that management, as if the member were a director of the body corporate.

Where— that person (as well as the firm) is liable to pay that amount to HMRC.

For provision about calculating the top-up element of a payment, see section 21.

Where a person is liable under any of sections 35 to 40 (“the relevant section”) to pay an amount to HMRC—

No assessment may be made under this section after—

The period referred to in subsection (2)(a) is—

Where two or more persons— each of those persons is jointly and severally liable to pay the amount assessed under this section.

Where a person is notified of an assessment under this section, the amount payable as a result of the assessment must be paid—

A requirement to pay an amount to HMRC under any of sections 35 to 40 may be enforced as if the amount were income tax charged in an assessment and due and payable. See also sections 52 to 54 (which contain further powers to recover amounts owed to HMRC).

A person is liable to a penalty under this section if the person meets condition A or B.

Condition A is that— An inaccuracy is careless if it is due to a failure by the person to take reasonable care.

Condition B is that—

In a case where the inaccuracy is deliberate, the amount of the penalty is 50% of the maximum available top-up payment for the entitlement period for which the declaration of eligibility was made.

In any other case, the amount of the penalty is 25% of the maximum available top-up payment for the entitlement period for which the declaration of eligibility was made.

“The maximum available top-up payment” for an entitlement period is the amount that would be payable by HMRC if qualifying payments equal to the relevant maximum for the entitlement period were made into the childcare account in respect of which the declaration was made. (For the relevant maximum for an entitlement period, see section 19(5) and (6).)

If— then for the purposes of subsection (6) above the relevant maximum for the entitlement period is to be taken to be that greater amount.

If— HMRC may give the person a warning notice.

A “warning notice” is a notice requiring the person to comply with the information notice before the end of the period of 30 days beginning with the day on which the warning notice is given.

If a person fails to comply with a warning notice given under this section, the person is liable to a penalty under this section.

The amount of the penalty may not exceed £300.

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

An information notice becomes final—

Accordingly—

A person is liable to a penalty under this section if—

Condition A is that the inaccuracy is careless or deliberate. An inaccuracy is careless if it is due to a failure by the person to take reasonable care.

Condition B is that the person knows of the inaccuracy at the time the information or document is provided but does not inform HMRC at that time.

Condition C is that the person—

The amount of a penalty under this section may not exceed £3,000.

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

A person is liable to a penalty under this section if—

HMRC may give a person a warning notice under this section if—

A warning notice is a notice which—

If a person is notified of a penalty under this section, the warning notice given to the person under this section ceases to have effect.

But subsection (4) does not prevent HMRC from giving the person a fresh warning notice as a result of the prohibited payment in respect of which the person was notified of the penalty.

Where a person is liable to a penalty under this section for causing or permitting a prohibited payment to be made, the amount of the penalty is 25% of the amount assessed under section 41 in respect of the prohibited payment.

For the purposes of this section an assessment under section 41 becomes final—

Accordingly—

A person (“P”) is liable to a penalty under this section if—

The following payments are “relevant payments”—

The amount of the penalty may not exceed— whichever is greater.

In subsection (3) “relevant amount” means— (For provision about calculating the top-up element of a payment, see section 21.)

Regulations may amend subsection (3)(a) so as to substitute a different amount for the amount for the time being specified there.

Where— that person (as well as the body corporate) is liable to a penalty under this section.

The persons are—

Where the affairs of a body corporate are managed by its members, subsection (6) applies in relation to the acts and defaults of a member, in connection with that management, as if the member were a director of the body corporate.

Where— that person (as well as the firm) is liable to a penalty under this section.

Where a person becomes liable to a penalty under this Act—

No assessment of a penalty may be made under this section after—

The period referred to in subsection (2)(a) is—

Where a person is notified of an assessment under this section, the penalty payable as a result of the assessment must be paid—

A penalty under this Act may be enforced as if it were income tax charged in an assessment and due and payable. See also section 53 (recovery of debts from childcare accounts).

HMRC may make a disqualification order in relation to a person if condition A, B or C is met.

Condition A is that, on more than one occasion in the period of 4 years ending with the day on which the disqualification order is made, the person—

Condition B is that—

The following payments are “relevant payments”—

Condition C is that—

“Relevant benefit” means any benefit or other payment of a description specified in regulations.

Where a disqualification order has effect in relation to a person—

A disqualification order has effect for the period specified in the order.

But a disqualification order may not have effect for a period longer than 3 years.

If HMRC make a disqualification order under this section, HMRC must give a copy of the order to—

HMRC may revoke a disqualification order made under this section.

This section applies if—

HMRC may direct that any childcare provided by the person is not qualifying childcare for the purposes of this Act.

A direction under this section has effect for 12 months beginning with the day on which it is made.

Regulations may amend subsection (3) so as to substitute a different period for the period for the time being specified there.

Where a direction under this section is made in relation to a person, the direction also applies in relation to—

HMRC must—

HMRC may revoke a direction made under this section.

Where— HMRC may give the person a notice in writing requiring the person to pay interest on the amount that has not been paid (“the relevant debt”).

If a notice is given to a person under this section, the relevant debt carries interest for a period which—

“The late payment interest start date” means—

“The specified day”, in relation to a notice given to a person under this section, means—

The specified day must fall within the period of 6 months beginning with the day on which the notice is given.

Interest under this section is payable at the late payment interest rate.

The “late payment interest rate” is—

Where two or more persons— each of those persons is jointly and severally liable to pay interest on the relevant debt.

This section applies where, as a result of a review of, or an appeal against, a tax credits decision—

The relevant debt may be deducted from the award before it is paid.

The requirement to pay the relevant debt is discharged to the extent that it is deducted from the award under this section.

In this section “tax credits decision” means a decision not to make an award of a tax credit or to terminate such an award.

This section ceases to have effect when the repeal of Part 1 of the Tax Credits Act 2002 made by Schedule 14 to the Welfare Reform Act 2012 has fully come into force.

This section applies where—

HMRC may direct the account provider to pay a specified amount from the account to HMRC in order to discharge the whole or part of the relevant debt. “Specified” means specified in the direction.

The account provider must comply with a direction given under this section.

Subsections (5) to (8) apply in a case where the relevant debt consists of an amount of recoverable top-up payments. In this section an “amount of recoverable top-up payments” means an amount which a person is liable to pay HMRC under any of sections 35 to 39 or section 40(1) (recovery of top-up payments).

HMRC may make a direction under this section only if the childcare account is not active at the time of the direction (see section 17(3)).

Where the account provider makes a payment to HMRC in accordance with the direction, the account provider must make a payment from the childcare account to the account-holder of the appropriate qualifying amount.

“The appropriate qualifying amount”, in relation to a direction under this section, is the amount which, if paid into a childcare account, would entitle the account-holder to a top-up payment equal to— (For provision about calculating the top-up element of funds held in an account, see section 21.)

If the amount specified in the direction is greater than the top-up element of the funds, the difference is to be deducted from the appropriate qualifying amount by the account provider and paid to HMRC in accordance with the direction.

Subsections (10) to (13) apply in a case where the relevant debt consists of any amount other than an amount of recoverable top-up payments.

HMRC may not specify in the direction an amount which is greater than the relevant percentage of the funds held in the account.

The “relevant percentage” is the percentage given by— where R is the percentage for the time being specified in section 1(4).

Where the account provider makes a payment to HMRC in accordance with the direction, the account provider must make a payment from the childcare account to HMRC of the corresponding top-up amount.

“The corresponding top-up amount”, in relation to a payment made in accordance with a direction under this section, is R% of the amount of the payment, where R is the percentage for the time being specified in section 1(4).

If a direction is made under this section both in respect of an amount of recoverable top-up payments and in respect of any other amount—

If the Commissioners provide childcare accounts, a direction under this section may not be made in respect of any fees charged in connection with a childcare account in accordance with section 15(8).

This section does not affect any other power of HMRC to recover amounts that are due and payable to HMRC.

This section applies where—

If the account-holder makes a withdrawal from the childcare account, the amount payable to HMRC under section 22 (the “corresponding top-up amount” of the withdrawal) is to be set off against the relevant debt.

In a case where the whole or part of the corresponding top-up amount of a withdrawal (“the set-off amount”) is set off against the relevant debt, so much of the withdrawal as generated the set-off amount is to be ignored for the purposes of section 19(8).

This section applies where an amount (a “relevant debt”) is due and payable to HMRC under this Act by a person.

For the purposes of this section—

In determining whether a relevant debt is an amount of recoverable top-up payments for the purposes of section 53 or 54, any amount paid to HMRC by the person in the discharge of a relevant debt is to be taken to have discharged a relevant debt within paragraph (b) of subsection (2) only if any relevant debt within paragraph (a) of that subsection has been discharged.

Any amount paid to HMRC by the person in the discharge of a relevant debt is to be taken to have discharged any relevant debt within paragraph (c) of subsection (2) only if any relevant debt within paragraph (a) or (b) of that subsection has been discharged.

Any amount paid to HMRC in accordance with a direction under section 53 made in respect of a relevant debt within paragraph (b) or (c) of subsection (2) is to be taken to have discharged any relevant debt within paragraph (c) only if any relevant debt within paragraph (b) has been discharged.

In this section an “amount of recoverable top-up payments” means an amount which a person is liable to pay HMRC under any of sections 35 to 39 or section 40(1) (recovery of top-up payments).

A person who is affected by an appealable decision (see subsection (3)) may appeal against the decision.

But a person may not appeal against any decision unless—

The following decisions are “appealable decisions”—

Where a person is notified of an appealable decision under this Act, the notification must include details of the person's right to apply for a review of the decision and to appeal against the decision.

The effect of an appealable decision falling within paragraph (d), (f), (g), (j) or (k) of subsection (3) is suspended by—

The effect of any other appealable decision is not suspended by the making of such an application or appeal.

A person who is affected by an appealable decision (“the applicant”) may apply to the Commissioners for Her Majesty's Revenue and Customs for a review of the decision.

The application must be made—

The application must—

Regulations may make provision specifying, or enabling HMRC to specify, the form and manner in which the application may be made (subject to subsection (3)(a)).

If an application for a review of a decision is made to the Commissioners in accordance with this section (and any provision made under subsection (3A)) , the Commissioners must review the decision.

On a review under this section, the Commissioners may—

If the applicant makes any representations to the Commissioners at a stage which gives the Commissioners a reasonable opportunity to consider them, the Commissioners must take account of them when carrying out the review.

Where— the review may proceed without that information or evidence.

The Commissioners must notify the applicant of the matters set out in subsection (9) within—

The matters referred to in subsection (8) are—

If the Commissioners do not comply with subsection (8), the review is to be treated as having concluded that the decision is upheld. In such a case, the Commissioners must notify the applicant of that conclusion.

A person who wishes to make an application for a review under section 57 may apply to the Commissioners for an extension of the period for making the application.

An application under this section—

Regulations may make provision specifying, or enabling HMRC to specify, the form and manner in which an application under this section may be made.

The Commissioners may grant an extension under this section if they are satisfied that—

If an application under this section is refused, it may not be renewed.

An appeal under section 56 is to the appropriate tribunal.

“The appropriate tribunal” means—

“Appeal tribunal” means an appeal tribunal constituted under Chapter 1 of Part 2 of the Social Security (Northern Ireland) Order 1998 (S.I. 1998/1506 (N.I. 10)).

Regulations may provide for any provision contained in or made under the following legislation to apply in relation to appeals under section 56, with such modifications as may be specified in regulations—

This section applies where a person is appealing to the Tribunal under section 56 against an appealable decision.

In a case where the appealable decision is a decision under section 47 to assess a penalty, or to assess a penalty of a particular amount, the Tribunal may do any of the following—

In any other case, the Tribunal must either—

The Tribunal may act as mentioned in subsection (3)(b) only to the extent that it is satisfied that the decision was wrong on one or more of the following grounds—

If the Tribunal quashes the whole or part of a decision, it may either— This is subject to section 61(8).

The Tribunal may not direct HMRC to take any action which they would not otherwise have the power to take in relation to the decision.

A decision of the Tribunal made by virtue of this section has the same effect as, and may be enforced in the same manner as, a decision of HMRC.

In this section “the Tribunal” means—

This section applies in the following cases.

The first case is where—

The second case is where—

The third case is where—

In this section “the affected parties” means—

Notice of the appeal must be given to each of the affected parties (other than the person bringing the appeal).

Each of the affected parties is to be treated as a party to the appeal.

If the Tribunal quashes the whole or part of the decision, it must substitute its own decision for that of HMRC.

A decision of the Tribunal made by virtue of this section has the same effect as, and may be enforced in the same manner as, a decision of HMRC.

In this section “the Tribunal” has the same meaning as in section 60.

Where a person has in circumstances specified in regulations been deprived of the opportunity to receive top-up payments in respect of a child for a period, HMRC must pay the person an amount equal to 20% of the costs incurred on qualifying childcare in respect of the child during the period.

But the amount paid to a person by HMRC under this section for a period may not exceed a maximum amount specified in, or determined in accordance with, regulations.

The circumstances that may be specified in regulations under this section include, in particular—

Payments may be made to a person under this section regardless of whether the person—

Regulations may make further provision about making payments under this section.

Regulations may substitute a different percentage for the percentage for the time being specified in subsection (1).

Section 270A of ITEPA 2003 (limited exemption from income tax for qualifying childcare vouchers) is amended as follows.

In subsection (1)—

In subsection (5)(a), before “employees” insert “ eligible ”.

After section 270A of ITEPA 2003 insert—

In section 717 of ITEPA 2003 (orders and regulations), in subsection (4), after “employments),” insert “ section 270AA(3) (exemption from income tax for qualifying childcare vouchers: meaning of “eligible employee”), ”.

Section 318A of ITEPA 2003 (childcare: limited exemption from income tax for other care) is amended as follows.

In subsection (1)—

In subsection (5)(a), before “employees” insert “ eligible ”.

After section 318A of ITEPA 2003 insert—

In section 318B of ITEPA 2003 (childcare: meaning of “care”, “child” etc), in subsection (1), for “318 and 318A” substitute “ 318 to 318AZA ”.

In section 717 of ITEPA 2003 (orders and regulations), in subsection (4), before “section 343(3)” insert “ section 318AZA(3) (exemption from income tax for other care: meaning of “eligible employee”), ”.

Any power to make regulations under this Act is exercisable by statutory instrument.

Any power to make regulations under the following provisions of this Act is exercisable by the Treasury—

Any power to make regulations under a provision of this Act that is not mentioned in subsection (2) is exercisable by the Commissioners for Her Majesty's Revenue and Customs.

Regulations under this Act may—

Subsection (4) does not apply to regulations under section 75 (see instead subsection (3) of that section).

A statutory instrument containing regulations under this Act is subject to annulment in pursuance of a resolution of either House of Parliament, unless the instrument—

Subsection (3) applies to a statutory instrument that contains (with or without other provisions)—

A statutory instrument to which this subsection applies may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

In this Act—

In this Act—

Regulations may make such provision amending, repealing, revoking or applying with modifications any enactment to which this section applies as the Treasury consider necessary or expedient in consequence of any provision made by or under this Act.

This section applies to—

There is to be paid out of money provided by Parliament any increase attributable to this Act in the sums payable under any other Act out of money so provided.

Subsections (3) and (4) apply if childcare accounts are provided by the Commissioners or the Director of Savings (“the relevant account provider”).

Sums paid into childcare accounts are not to be paid into the Consolidated Fund.

Sums payable from childcare accounts are not to be regarded as expenditure of the relevant account provider.

Except as provided by subsection (2), this Act extends to England and Wales, Scotland and Northern Ireland.

Any amendment or repeal made by this Act has the same extent as the provision amended or repealed.

The following provisions of this Act come into force on the day on which this Act is passed—

The remaining provisions of this Act come into force in accordance with provision contained in regulations.

Regulations under subsection (2) may—

This Act may be cited as the Childcare Payments Act 2014.