Commentary on Sections Part 1: Tax Credits Section 24: Payments
102.This section provides that payments of a tax credit, or of an element of a tax credit, must be made to the person to whom the award is made (subsection (1)). In the case of a couple, or where one person acts on another’s behalf, regulations are to prescribe the person to whom payments are to be made (subsections (2) and (3)). For example, regulations may provide that payments of an award made to a person who is incapacitated may be made to the person acting on their behalf.
103.Regulations under subsection (4) may prescribe circumstances in which payments may be continued after the end of a tax year for which a tax credit award was made. These payments are to be treated as payments of the tax credit for the next tax year (subsection (2)). This will enable tax credit payments to continue to be made, without interruption, at the start of each tax year when claims are being renewed.
104.Payments of a tax credit must be made by the Board, except where regulations under section 25 require payments of working tax credit to be made by employers (subsection (6)). Regulations may be made about when and how tax credit payments are to be made by the Board (subsection (7)). In particular, regulations may make entitlement to a tax credit, or to an element of a tax credit, dependent on the claimant(s) providing details of a suitable account into which payments can be made (subsection (8)).