TCTM02420 - Entitlement: WTC entitlement - Qualifying remunerative work: Periods of Maternity, Paternity, Adoption Leave, Parental Bereavement Leave and periods of illness or incapacity for work - treated as being in qualifying remunerative work

The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002, Reg. 5 & 5A

Time off in connection with childbirth, adoption and bereavement

A person who:

  • is paid maternity allowance
  • is paid statutory maternity pay
  • is on ordinary maternity leave, or is absent from work during the first 13 weeks of an additional maternity leave period
  • is paid statutory paternity pay
  • is on paternity leave
  • is on additional paternity leave during the additional paternity pay period
  • is paid statutory adoption pay
  • is on ordinary adoption leave, or is absent from work during the first 13 weeks of an additional adoption leave period
  • is paid statutory shared parental pay
  • is paid statutory parental bereavement pay,
  • is absent from work during a period of parental bereavement leave under section 80EA of the Employment Rights Act 1996
  • is absent from work during a period of shared parental leave, or would have qualified for one of the above but for self-employment

is treated as being in qualifying remunerative work, provided he or she normally worked at least 16, 24 or 30 hours (whichever applies) or was treated as being engaged in work under Reg 7E (alteration in hours worked due to coronavirus), immediately before the leave or statutory payments began.

A self-employed person does not have to receive one of the benefits listed above. They will be treated as engaged in qualifying remunerative work during the period providing that:

  • they were engaged in self employed qualifying remunerative work or were treated as being engaged in work under Reg7E (alteration in hours worked due to coronavirus), in the week immediately before the period of sickness began
  • they would have qualified for one of the benefits listed above if they had been employed

Where a person did not qualify for WTC prior to the birth or placement for adoption they will be treated as being engaged in qualifying remunerative work from the date the child is born or placed for adoption providing they, or in the case of a joint claim they and/or their partner worked the relevant number of hours for a person/couple that are responsible for a child or qualifying young person (as long as the other qualifying conditions are met).

Regulations 5 and 5A are subject to regulation 7D (Ceasing to undertake for work or working for less than 16, 24 or 30 hours per week).