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HMRC internal manual

Tax Credits Technical Manual

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HM Revenue & Customs
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Sums disregarded in the calculation of income: Mandatory top-up under Voluntary Sector and Environmental Task Force Options of New Deal and under New Deal 25+etc

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg.19, Table 6, Item 3

A mandatory top-up payment may be disregarded if it is made:

  • under section 2 of the Employment and Training Act 1973, or section 1 of the Employment and Training Act (Northern Ireland) 1950 in respect of a claimant’s participation in:

    • an employment programme in the Voluntary Sector, or 
    • an employment programme such as the Environmental Task Force Options of the New Deal, or
    • an employment programme such as the Community Task Force, or 
    • the Intensive Activity Period of the New Deal 25 plus (or, in Northern Ireland, the Preparation for Employment Programme), or 
    • the Steps to Work Programme specified in Regulation 75(1)(a)(vi) of the Jobseeker’s Allowance Regulations (Northern Ireland) 1996, or 
    • the Backing Young Britain programme following arrangements made under section 2 of the Employment Act

A payment may also be disregarded if it is paid under a written agreement between the Secretary of State (or, in Northern Ireland, the Department of Employment & Learning) and the person who has arranged their participation in the Intensive Activity Period of New Deal 25 plus (or, in Northern Ireland, the Preparation for Employment Programme).

Such payments are disregarded only to the extent that they are not taxable as a profit of a trade, profession or vocation.