TFC09150 - Employed person: relevant earning threshold for income earned but not paid within the 3-month eligibility period

Childcare Payments (Eligibility) Regulations 2015, regulation 9(1)(a)

The main conditions attached to TFC are that the person is working, is employed and expects to receive income for the work done during the relevant 3-month period that meets the relevant threshold set out in the regulations. The expected income must relate to the work done in the period concerned but can still be accepted if it is paid to the employee outside this period.

Example

Tom is a director of a company who works and earns a salary as an employee throughout the year but pays himself on an annual basis. The current national minimum wage applicable to Tom is £10.42 per hour. Tom must expect to earn an average of at least £166.72 per week for the 3 months following the date of his declaration of eligibility and an average of £2167.35 every 3 months in the 23/24 tax year to satisfy the minimum income requirement for TFC.

£10.42 x 16 hours = £166.72 x 52 weeks = £8669.44 / 12 months = £722.45 x 3 = £2167.35

Tom provides sufficient evidence of previous and expected earnings which satisfy the minimum income criteria for an employed person. His intention to produce a payroll at the end of the tax year is also accepted as evidence of expected earnings at declaration stage.