What does section 5 of the Small Charitable Donations and Childcare Payments Act 2017 do?

Section 5 amends the Childcare Payments Act 2014 by extending the power to vary entitlement periods from one month to two months. It also gives HMRC new powers to specify the form and manner in which review and appeal applications under the tax-free childcare scheme must be submitted.

How does section 5 change the entitlement period variation under the tax-free childcare scheme?

Previously, the power to vary the length of entitlement periods was limited to adjustments of up to one month. Section 5 doubles this to two months, giving HMRC greater flexibility in how entitlement periods for tax-free childcare payments are set and administered for eligible parents.

What new powers does HMRC have over review and appeal applications for childcare payments?

Section 5 introduces powers allowing regulations to specify, or to allow HMRC itself to specify, the form and manner for submitting review and appeal applications. This means HMRC can require parents to use specific forms or online portals, standardising and streamlining the administration of the scheme.

How do section 5 changes affect parents applying for tax-free childcare reviews or appeals?

Parents wishing to challenge HMRC decisions must now submit review or appeal applications in whatever form HMRC has specified, such as through an online portal rather than by letter. Previously, there was no explicit power for HMRC to dictate the format of such applications under the scheme.

Small Charitable Donations and Childcare Payments Act 2017 section 5

Childcare payments

Section 5 makes several amendments to the Childcare Payments Act 2014, extending the power to vary entitlement periods and giving HMRC greater flexibility over how review and appeal applications are submitted.

The maximum length by which entitlement periods can be varied is extended from one month to two months
HMRC is given the power to specify the form and manner in which applications for review of decisions must be made
HMRC is given similar powers to specify the form and manner for appeal applications
These changes provide HMRC with greater administrative control over the tax-free childcare scheme

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