House of Lords Amendments - Tax Credits Bill

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Session 1998-99
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Amendments to the Tax Credits Bill

Tax Credits Bill -
Amendments to be debated in the House of Lords
Here you can browse the Amendments to the Tax Credits Bill to be moved in Committee in the House of Lords.

Clause 2

BY THE LORD GOODHART
THE EARL RUSSELL

     The above-named Lords give notice of their intention to oppose the Question that Clause 2 stand part of the Bill.

After Clause 2

BY THE LORD GOODHART
THE EARL RUSSELL

     Insert the following new Clause--

    ("  .  Regulations made by the Board under section 2(1)(c) shall provide that, in the case of a claim for working families' tax credit, where a married or unmarried couple is included in the family and one member is in employment and the other member is receiving education or training of a specified kind and for a specified period, the tax credit may include such credit for child care as may be specified.") Child Care element.

     Insert the following new Clause--

    ("  .  Regulations made by the Board under section 2(1)(c) shall provide that, in the case of a claim for working families' tax credit, where a married or unmarried couple is included in the family, the claim shall be made by and payment shall be made to whichever member they agree should so claim and, in default of agreement, shall be made to the member having the principal responsibility for care of the children of the family.") Working families' tax credit: claimant.

Before Clause 5

BY THE LORD RIX

     Insert the following new Clause--

    ("  .  The Board shall conduct a review every two years of entitlement to the disabled persons tax credit and issue recommendations to the Secretary of State.") Functions of
Board: disabled
persons tax
credit--review
of entitlement.

After Clause 5

BY THE BARONESS TURNER OF CAMDEN

     Insert the following new Clause--

    ("  .  In subsection (3) of section 22 of the Education Act 1980 and subsection (3) of section 53 of the Education (Scotland) Act 1980 (as inserted in each case by section 77 of the Social Security Act 1986), the words "or a tax credit within the meaning of the Tax Credits Act 1999" shall be inserted after "income support" and the words "in receipt of income support or, as the case may be, such a credit" shall be substituted for the words "in receipt of it".") Refreshments for school pupils.

Clause 6

BY THE LORD GOODHART
THE EARL RUSSELL

     Page 3, line 31, at beginning insert ("Subject to subsection (1A),")

     Page 3, line 35, at end insert--

    ("(1A)  Any employer employing fewer than ten employees may elect that any tax credit to which an employee is entitled shall be paid by the Board instead of being paid by him.

    (1B)  For the purposes of subsection (1A), the Board may make regulations providing for--
(a)  the method for making or revoking an election;

(b)  the method for cancelling an election if the employer subsequently employs ten or more employees;

(c)  two or more connected employers to be treated in specified circumstances as if each of them employed the employees employed by the other connected employers as well as the employees employed by himself.")

     Page 4, line 4, at end insert--
("(  )  for the funding by the Board of an additional sum (calculated as a percentage of the tax credit paid by an employer) to be set off as provided in paragraph (d) by or paid to employers or any category of employers by way of compensation for the administration cost of paying tax credits;")

     Page 4, line 10, at end insert--

    ("(  )  The Board shall make regulations authorising an employee to elect to be paid tax credit by the Board if--
(a)  the employee has more than one employer;

(b)  the employee is employed under a fixed term contract for a fixed term of not more than 26 weeks; or

(c)  the employee has reasonable grounds for not wishing his employer or prospective employer to know that he is entitled to tax credit or the amount of tax credit to which he is entitled.")

     Page 4, line 14, after ("which") insert ("shall in the case of the first regulations made under any subsections of this section be made only if a draft of the regulations has been laid before, and approved by a resolution of, each House of Parliament and in the case of subsequent regulations")

BY THE LORD FREEMAN

     Page 4, line 17, at end insert ("if the requirements of section (Preparation of forms, etc.) are satisfied, and otherwise on such day after those requirements are satisfied as the Secretary of State may by order made by statutory instrument appoint")

After Clause 6

BY THE LORD FREEMAN

     Insert the following new Clause--

    (".  The requirements of this section are that in respect of a tax credit the Board--
(a)  adopts the same definition of profit and income as for the purpose of income tax,

(b)  employs the same simplified reporting procedures as it employs in respect of income tax,

(c)  adopts the same form of declaration in a claim form as for the purpose of an income tax return, and

(d)  issues equivalent guidance notes with a claim form as for income tax returns,
and that it issues notes which explain in clear language all the factors which claimants might reasonably need to take into account in making the choice as to the receipt of the tax credit in question.") Preparation of forms, etc.

Before Clause 14

BY THE LORD RIX

     Insert the following new Clause--

    ("  .  The definition of remunerative work in respect of which a disabled persons tax credit may be payable shall include remunerative work for less than 16 hours a week as set out in--
(a)  section 129 (disability working allowance) of the Social Security Contributions and Benefits Act 1992; and

(b)  section 128 (disability working allowance) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992.")
Definition of remunerative work: disabled persons tax credit.

Clause 15

BY THE LORD GOODHART
THE EARL RUSSELL

     Page 8, line 32, after ("which) insert ("shall in the case of the first regulations made under this section be made only if a draft of the regulations has been laid before, and approved by a resolution of, each House of Parliament and in the case of subsequent regulations")

After Clause 16

BY THE LORD FREEMAN

     Insert the following new Clause--

    (".  The Board shall lay before Parliament no later than 31st January 2001 a report on the performance in the first year of operation of each of the working families' tax credit and the disabled person's tax credit, setting out--
(a)  the targets set for take up of each tax credit and actual performance against those targets;

(b)  the comparative time for finally determining claims compared with the final year of operation of family credit and disability working allowance;

(c)  the targets set by the Board for fully accurate determination of entitlement to tax credits and actual performance against those targets, and

(d)  the percentage of claims which were--

    (i)  submitted by claimants in an incorrect form,

    (ii)  fraudulent, and

    (iii)  incorrectly determined by the Board (whether or not the determination was subsequently rectified).")
Report on first year of operation.

© Parliamentary copyright 1999
Prepared 21 April 1999

	Clause 2
	BY THE LORD GOODHART THE EARL RUSSELL
	The above-named Lords give notice of their intention to oppose the Question that Clause 2 stand part of the Bill.
	After Clause 2
	BY THE LORD GOODHART THE EARL RUSSELL
	Insert the following new Clause--
	(" . Regulations made by the Board under section 2(1)(c) shall provide that, in the case of a claim for working families' tax credit, where a married or unmarried couple is included in the family and one member is in employment and the other member is receiving education or training of a specified kind and for a specified period, the tax credit may include such credit for child care as may be specified.")		Child Care element.
	Insert the following new Clause--
	(" . Regulations made by the Board under section 2(1)(c) shall provide that, in the case of a claim for working families' tax credit, where a married or unmarried couple is included in the family, the claim shall be made by and payment shall be made to whichever member they agree should so claim and, in default of agreement, shall be made to the member having the principal responsibility for care of the children of the family.")		Working families' tax credit: claimant.
	Before Clause 5
	BY THE LORD RIX
	Insert the following new Clause--
	(" . The Board shall conduct a review every two years of entitlement to the disabled persons tax credit and issue recommendations to the Secretary of State.")		Functions of Board: disabled persons tax credit--review of entitlement.
	After Clause 5
	BY THE BARONESS TURNER OF CAMDEN
	Insert the following new Clause--
	(" . In subsection (3) of section 22 of the Education Act 1980 and subsection (3) of section 53 of the Education (Scotland) Act 1980 (as inserted in each case by section 77 of the Social Security Act 1986), the words "or a tax credit within the meaning of the Tax Credits Act 1999" shall be inserted after "income support" and the words "in receipt of income support or, as the case may be, such a credit" shall be substituted for the words "in receipt of it".")		Refreshments for school pupils.
	Clause 6
	BY THE LORD GOODHART THE EARL RUSSELL
	Page 3, line 31, at beginning insert ("Subject to subsection (1A),")
	Page 3, line 35, at end insert-- ("(1A) Any employer employing fewer than ten employees may elect that any tax credit to which an employee is entitled shall be paid by the Board instead of being paid by him. (1B) For the purposes of subsection (1A), the Board may make regulations providing for-- (a) the method for making or revoking an election; (b) the method for cancelling an election if the employer subsequently employs ten or more employees; (c) two or more connected employers to be treated in specified circumstances as if each of them employed the employees employed by the other connected employers as well as the employees employed by himself.")
	Page 4, line 4, at end insert-- ("( ) for the funding by the Board of an additional sum (calculated as a percentage of the tax credit paid by an employer) to be set off as provided in paragraph (d) by or paid to employers or any category of employers by way of compensation for the administration cost of paying tax credits;")
	Page 4, line 10, at end insert-- ("( ) The Board shall make regulations authorising an employee to elect to be paid tax credit by the Board if-- (a) the employee has more than one employer; (b) the employee is employed under a fixed term contract for a fixed term of not more than 26 weeks; or (c) the employee has reasonable grounds for not wishing his employer or prospective employer to know that he is entitled to tax credit or the amount of tax credit to which he is entitled.")
	Page 4, line 14, after ("which") insert ("shall in the case of the first regulations made under any subsections of this section be made only if a draft of the regulations has been laid before, and approved by a resolution of, each House of Parliament and in the case of subsequent regulations")
	BY THE LORD FREEMAN
	Page 4, line 17, at end insert ("if the requirements of section (Preparation of forms, etc.) are satisfied, and otherwise on such day after those requirements are satisfied as the Secretary of State may by order made by statutory instrument appoint")
	After Clause 6
	BY THE LORD FREEMAN
	Insert the following new Clause--
	(". The requirements of this section are that in respect of a tax credit the Board-- (a) adopts the same definition of profit and income as for the purpose of income tax, (b) employs the same simplified reporting procedures as it employs in respect of income tax, (c) adopts the same form of declaration in a claim form as for the purpose of an income tax return, and (d) issues equivalent guidance notes with a claim form as for income tax returns, and that it issues notes which explain in clear language all the factors which claimants might reasonably need to take into account in making the choice as to the receipt of the tax credit in question.")		Preparation of forms, etc.
	Before Clause 14
	BY THE LORD RIX
	Insert the following new Clause--
	(" . The definition of remunerative work in respect of which a disabled persons tax credit may be payable shall include remunerative work for less than 16 hours a week as set out in-- (a) section 129 (disability working allowance) of the Social Security Contributions and Benefits Act 1992; and (b) section 128 (disability working allowance) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992.")		Definition of remunerative work: disabled persons tax credit.
	Clause 15
	BY THE LORD GOODHART THE EARL RUSSELL
	Page 8, line 32, after ("which) insert ("shall in the case of the first regulations made under this section be made only if a draft of the regulations has been laid before, and approved by a resolution of, each House of Parliament and in the case of subsequent regulations")
	After Clause 16
	BY THE LORD FREEMAN
	Insert the following new Clause--
	(". The Board shall lay before Parliament no later than 31st January 2001 a report on the performance in the first year of operation of each of the working families' tax credit and the disabled person's tax credit, setting out-- (a) the targets set for take up of each tax credit and actual performance against those targets; (b) the comparative time for finally determining claims compared with the final year of operation of family credit and disability working allowance; (c) the targets set by the Board for fully accurate determination of entitlement to tax credits and actual performance against those targets, and (d) the percentage of claims which were-- (i) submitted by claimants in an incorrect form, (ii) fraudulent, and (iii) incorrectly determined by the Board (whether or not the determination was subsequently rectified).")		Report on first year of operation.