TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

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Tax Credits Regulations

The Tax Credits (Miscellaneous Amendments) (No. 2) Regulations 2008 encompasse a number of amendments to the definition and calculation of tax credits. Such amendments include regulations to disregard as employment income various welfare to work pilot schemes such as the ‘In-Work’ Emergency Fund payment made by the Department of Economic Development in Northern Ireland.

The miscellaneous changes cover the following:

  1. The regulations amend the Working Tax Credit (Entitlement and Maximum Rate) Regulations to bring the definition of qualifying childcare in England into line with changes introduced by the Childcare Act 2006.
  2. The regulations amend the Tax Credits (Definition and Calculation of Income) Regulations to disregard as employment income various welfare to work pilot schemes which have been or are being introduced by the Secretary of State for Work and Pensions. In addition, this disregard is widened to cover any ‘In-Work’ Emergency Fund payment made by the Department of Economic Development in Northern Ireland.
  3. The regulations further amend the Tax Credits (Definition and Calculation of Income) Regulations to disregard benefits and expenses included in Pay As You Earn (PAYE) settlement agreements concluded by HMRC and employers. The disregard also applies to other payments within “special arrangements” agreed between HMRC and employers.
  4. The regulations amend the Tax Credits (Definition and Calculation of Income) Regulations to up-date regulation 8 (Student Income) in line with changes made to any ‘adult dependant's grant’ payable in England and Wales.
  5. The regulations amend the Child Tax Credit Regulations 2002 to more closely align the Child Tax Credit entitlement conditions for 16 to 19 year olds with the changes made to Child Benefit Regulations in 2006.
  6. Finally, the regulations amend the Tax Credits (Claims and Notifications) Regulations so that a tax credit claim made by one member of a couple is to be treated as also made by the other member of a couple.

These regulations came into force on 1 September 2008. Full details are available at http://www.hmrc.gov.uk/si/2008-2169-em.pdf