SOCIAL SECURITY Citation, commencement and effect 1 1 These Regulations may be cited as the Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001. 2 Except for regulation 20, these Regulations shall come into force on 4th April 2001. 3 Regulation 20 shall come into force on 10th April 2001 immediately after the Tax Credits (Claims and Payments) (Amendment) Regulations 2001 . 4 Regulations 4 to 9, 12 to 17 and 19 shall have effect in relation to claims which are made on or after 4th April 2001. 5 Regulations 10 and 18 shall have effect in relation to award periods which are current on or after 4th April 2001. 6 Regulation 20 shall have effect in relation to claims which are made on or after 10th April 2001. Interpretation 2 In these Regulations— “award periods” means award periods of disabled person’s tax credit or working families' tax credit; “ the Board ” means the Commissioners of Inland Revenue; “claims” means claims for working families' tax credit or disabled person’s tax credit; “the Disability Working Allowance Regulations ” means the Disability Working Allowance (General) Regulations 1991 ; “the Family Credit Regulations ” means the Family Credit (General) Regulations 1987 . Amendments to the Disability Working Allowance Regulations 3 1 Amend regulation 2 of the Disability Working Allowance Regulations as follows. 2 After the definition of “employment zone contractor” insert the following definition— “extra statutory maternity pay” means a payment or payments made by an employer to an employee during a maternity pay period in order to supplement statutory maternity pay that is paid to that employee for that period; . 3 After the definition of “lower rate” insert the following definition— “maternity allowance” shall be construed in accordance with section 35 of the Contributions and Benefits Act ; . 4 After the definition of “sports award” insert the following definitions— “statutory maternity pay” and “maternity pay period” shall be construed in accordance with Part XII of the Contributions and Benefits Act; . 5 After the definition of “subsistence allowance” insert the following definition— “surrogate child” means a child in respect of whom an order has been made under section 30 of the Human Fertilisation and Embryology Act 1990 ; . 4 1 Amend regulation 6 of the Disability Working Allowance Regulations as follows. 2 In paragraph (4) — a in sub-paragraph (c) for the words “this paragraph” substitute “sub-paragraph (b)”; b after sub-paragraph (c) insert the following sub-paragraph— or d in the case of a woman on maternity leave at the date of the claim, the hours worked shall be calculated on the basis of a declaration made by her of the average hours worked per week prior to the commencement of her maternity leave. . 3 In paragraph (5) after sub-paragraph (d) add the following sub-paragraph— or e cannot satisfy the requirements of sub-paragraph (a) or (b) above at the date of claim because she is on maternity leave at that date but— i prior to the commencement of her maternity leave, she worked, on average, not less than 16 hours a week, and ii she is entitled to maternity allowance or statutory maternity pay at the date of the claim. . 5 1 Amend regulation 16 of the Disability Working Allowance Regulations as follows. 2 In each of paragraphs (2) to (5) for the words “paragraph (7)” substitute “paragraphs (7), (8A), (8B) and (8C)”. 3 After paragraph (8) insert the following paragraphs— 8A Where— a the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer, and b the next payment from her employer following the date of the claim is a payment which will include statutory maternity pay paid to her for a full pay period at the lower rate only, the Board shall require the claimant to furnish them with an estimate of her likely earnings and statutory maternity pay to be contained in that payment, and her normal weekly earnings shall be determined by taking account of that estimate. 8B Where— a the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer, b the claim is made during a maternity pay period and at a time when less than half of that maternity pay period has expired, and c in consequence the next payment from her employer following the date of the claim is a payment which will not include statutory maternity pay paid to her for a full pay period at the lower rate only, the Board shall require the claimant to furnish them with an estimate of her likely earnings and statutory maternity pay to be contained in the first future payment from her employer in which statutory maternity pay will be paid to her at the lower rate only, and her normal weekly earnings shall be determined by taking account of that estimate. 8C Where— a the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer, b the claim is made during a maternity pay period and at a time when more than half of that maternity pay period has expired, and c in consequence the next payment from her employer following the date of the claim is a payment which will not include statutory maternity pay paid to her for a full pay period at the lower rate only, the Board shall require the claimant to furnish them with details of her earnings and statutory maternity pay contained in the payment from her employer immediately preceding the date of the claim, and her normal weekly earnings shall be determined accordingly. . 6 1 Amend regulation 21 of the Disability Working Allowance Regulations as follows. 2 After paragraph (4) add the following paragraphs— 5 An employed earner shall not be treated as being in receipt of earnings in any assessment period as long as she is entitled to maternity allowance at the date of the claim. 6 An employed earner shall not be treated as being in receipt of earnings in any assessment period as long as she is entitled to statutory maternity pay at the date of the claim and is neither receiving nor expecting to receive at that date extra statutory maternity pay from her employer. . 7 1 Amend regulation 22 of the Disability Working Allowance Regulations as follows. 2 In paragraph (4) after the words “paragraph (8)” insert “, (8A) or (8B)”. 8 1 Amend regulation 24 of the Disability Working Allowance Regulations as follows. 2 After paragraph (3) add the following paragraph— 4 A self-employed earner shall not be treated as being in receipt of earnings in any assessment period as long as she is entitled to maternity allowance at the date of the claim. . 9 1 Amend regulation 51A of the Disability Working Allowance Regulations as follows. 2 After paragraph (2) insert the following paragraph— 2ZA A person is not engaged in remunerative work for the purposes of paragraph (1) where that person is treated as being in remunerative work by virtue only of either— a paragraph (5)(c) of regulation 6 (recognised, customary or other holiday) in circumstances where the absence from work arises from the need to care for a recently adopted child or young person or from the acquisition of a surrogate child, or b paragraph (5)(e) of that regulation (woman on maternity leave), unless immediately prior to the adoption of the child or young person or the granting of the parental order for the surrogate child or the birth of the child (as the case may be) that person was paying, or had incurred, relevant childcare charges for another child or other children of her household. . 3 In paragraph (2A) after sub-paragraph (c) add the following sub-paragraph— d where paragraph (2ZA) applies, in the definition of “relevant childcare charges” the references to a child of the claimant’s family do not include references to any child born or child or young person adopted or surrogate child acquired during the period of absence or maternity leave. . 10 After regulation 54 insert the following regulation— Surrendering an award following birth or adoption etc. of child 54A 1 An existing award of disabled person’s tax credit shall cease to have effect if the claimant or partner elects, by notice to the Board, to surrender it following the birth of a child, the adoption of a child or young person or the granting of a parental order for a surrogate child. 2 The award shall terminate with effect from— a the day on which the notice is given to the Board, if that day is a Monday, or b the Monday following the day on which the notice is given to the Board, if that day is other than a Monday. . Amendments to the Family Credit Regulations 11 1 Amend regulation 2 of the Family Credit Regulations as follows. 2 After the definition of “employment zone contractor” insert the following definition— “extra statutory maternity pay” means a payment or payments made by an employer to an employee during a maternity pay period in order to supplement statutory maternity pay that is paid to that employee for that period; . 3 After the definition of “lower rate” insert the following definition— “maternity allowance” has the meaning given by section 35 of the Contributions and Benefits Act; . 4 After the definition of “sports award” insert the following definitions— “statutory maternity pay” and “maternity pay period” shall be construed in accordance with Part XII of the Contributions and Benefits Act; . 5 After the definition of “subsistence allowance” insert the following definition— “surrogate child” means a child in respect of whom an order has been made under section 30 of the Human Fertilisation and Embryology Act 1990; . 12 1 Amend regulation 4 of the Family Credit Regulations as follows. 2 In paragraph (4) after sub-paragraph (c) insert the following sub-paragraph— or d in the case of a woman on maternity leave at the date of the claim, the hours worked shall be calculated on the basis of a declaration made by her of the average hours worked per week prior to the commencement of her maternity leave. . 3 In paragraph (5) after sub-paragraph (d) add the following sub-paragraph— or e cannot satisfy the requirements of sub-paragraph (a) or (b) above at the date of claim because she is on maternity leave at that date but— i prior to the commencement of her maternity leave, she worked, on average, not less than 16 hours a week, and ii she is entitled to maternity allowance or statutory maternity pay at the date of the claim, . 13 1 Amend regulation 14 of the Family Credit Regulations as follows. 2 In paragraph (1) for the words “paragraphs (3) to (6)” substitute “paragraphs (3) to (6C)”. 3 In paragraph (2) for the words “paragraphs (2A) to (6)” substitute “paragraphs (2A) to (6C)”. 4 After paragraph (6) insert the following paragraphs— 6A Where— a the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer, and b the next payment from her employer following the date of the claim is a payment which will include statutory maternity pay paid to her for a full pay period at the lower rate only, the Board shall require the claimant to furnish them with an estimate of her likely earnings and statutory maternity pay to be contained in that payment, and her normal weekly earnings shall be determined by taking account of that estimate. 6B Where— a the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer, b the claim is made during a maternity pay period and at a time when less than half of that maternity pay period has expired, and c in consequence the next payment from her employer following the date of the claim is a payment which will not include statutory maternity pay paid to her for a full pay period at the lower rate only, the Board shall require the claimant to furnish them with an estimate of her likely earnings and statutory maternity pay to be contained in the first future payment from her employer in which statutory maternity pay will be paid to her at the lower rate only, and her normal weekly earnings shall be determined by taking account of that estimate. 6C Where— a the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer, b the claim is made during a maternity pay period and at a time when more than half of that maternity pay period has expired, and c in consequence the next payment from her employer following the date of the claim is a payment which will not include statutory maternity pay paid to her for a full pay period at the lower rate only, the Board shall require the claimant to furnish them with details of her earnings and statutory maternity pay contained in the payment from her employer immediately preceding the date of the claim, and her normal weekly earnings shall be determined accordingly. . 14 1 Amend regulation 19 of the Family Credit Regulations as follows. 2 After paragraph (4) add the following paragraphs— 5 An employed earner shall not be treated as being in receipt of earnings in any assessment period as long as she is entitled to maternity allowance at the date of the claim. 6 An employed earner shall not be treated as being in receipt of earnings in any assessment period as long as she is entitled to statutory maternity pay at the date of the claim and is neither receiving nor expecting to receive at that date extra statutory maternity pay from her employer. . 15 1 Amend regulation 20 of the Family Credit Regulations as follows. 2 In paragraph (4) after the words “paragraph (6)” insert “, (6A) or (6B)”. 16 1 Amend regulation 21 of the Family Credit Regulations as follows. 2 After paragraph (3) add the following paragraph— 4 A self-employed earner shall not be treated as being in receipt of earnings in any assessment period as long as she is entitled to maternity allowance at the date of the claim. . 17 1 Amend regulation 46A of the Family Credit Regulations as follows. 2 After paragraph (2) insert the following paragraph— 2ZA A person is not engaged in remunerative work for the purposes of paragraph (1) where that person is treated as being in remunerative work by virtue only of either— i paragraph (5)(c) of regulation 4 (recognised, customary or other holiday) in circumstances where the absence from work arises from the need to care for a recently adopted child or young person or from the acquisition of a surrogate child, or ii paragraph (5)(e) of that regulation (woman on maternity leave), unless immediately prior to the adoption of the child or young person or the granting of the parental order for the surrogate child or the birth of the child (as the case may be) that person was paying, or had incurred, relevant childcare charges for another child or other children of her household. . 3 In paragraph (2A) after sub-paragraph (c) add the following sub-paragraph— d where paragraph (2ZA) applies, in the definition of “relevant childcare charges” the references to a child of the claimant’s family do not include references to any child born or child or young person adopted or surrogate child acquired during the period of absence or maternity leave. . 18 After regulation 49 insert the following regulation— Surrendering an award following birth or adoption etc. of child 49ZA 1 An existing award of working families' tax credit shall cease to have effect if the claimant or partner elects, by notice to the Board, to surrender it following the birth of a child, the adoption of a child or young person or the granting of a parental order for a surrogate child. 2 The award shall terminate with effect from— a the day on which the notice is given to the Board, if that day is a Monday, or b the Monday following the day on which the notice is given to the Board, if that day is other than a Monday. . Amendment to the Tax Credits (Payment by Employers) Regulations 1999 19 1 Amend the Tax Credits (Payment by Employers) Regulations 1999 as follows. 2 Renumber regulation 2 as paragraph (1) of that regulation. 3 After paragraph (1) of regulation 2 (as so renumbered) add the following paragraphs— 2 References in these Regulations to entitlement to tax credit or to an award of tax credit do not include either of the following cases. 3 The first case is where— a the entitlement arises from, or the award is made in consequence of, a claim made following and by reason of the birth of a child to the claimant or the adoption by the claimant of a child or young person or the granting of a parental order for a surrogate child, and b the previous award of tax credit was terminated by virtue of— i regulation 54A of the Disability Working Allowance (General) Regulations 1991 or regulation 54A of the Disability Working Allowance (General) Regulations (Northern Ireland) 1992 , or ii regulation 49ZA of the Family Credit (General) Regulations 1987 or regulation 49ZA of the Family Credit (General) Regulations (Northern Ireland) 1987 . 4 The second case is where the claimant is entitled at the date of the claim to statutory maternity pay within the meaning of Part XII of the Social Security Contributions and Benefits Act 1992 or maternity allowance within the meaning of section 35 of that Act. 5 In paragraph (3)(a) “surrogate child” means a child in respect of whom an order has been made under section 30 of the Human Fertilisation and Embryology Act 1990. . Amendment to the Social Security (Claims and Payments) Regulations 1987 20 1 Amend the Social Security (Claims and Payments) Regulations 1987 as follows. 2 In regulation 6(1C) add the following words after sub-paragraph (b) of that paragraph— unless the previous award of working families' tax credit or disabled person’s tax credit was terminated by virtue of regulation 49ZA of the Family Credit (General) Regulations 1987 or regulation 54A of the Disability Working Allowance (General) Regulations 1991. . Greg Pope Jim Dowd Two of the Lords Commissioners of Her Majesty’s Treasury 8th March 2001 Tim Flesher Dave Hartnett Two of the Commissioners of Inland Revenue 9th March 2001