Commentary on Sections Other Enforcement Powers Section 50: Power to exclude childcare from being qualifying childcare
216.Section 50 enables HMRC to exclude care provided by a particular childcare provider from being qualifying childcare under the Act. This will mean that the childcare provider in question will be unable to provide childcare for the purposes of the scheme.
217.Subsections (1) and (2) enable HMRC to direct that childcare provided by a person is not qualifying childcare if they have been convicted of a criminal offence or notified of a penalty under section 46 for dishonestly acting or failing to act in order to obtain a payment from a childcare account.
218.Subsection (3) provides that a direction under this section will have effect for 12 months starting with the day on which it was made. This period can be amended in regulations under subsection (4).
219.Subsection (5) provides that any direction made against a person also applies to any company of which that individual is a director or officer, any corporate body (such as a co-operative) of which the person is a managing member and any Scottish firm of which the individual is a partner. The direction will no longer apply to an organisation if the person ceases to hold such a position.
220.Subsection (6) obliges HMRC to notify both the childcare provider and any account provider in any case where a childcare provider has been excluded from the scheme. HMRC must also bring such cases to the attention of anyone else who might be affected by the exclusion, such as account-holders.
221.Subsection (7) provides that HMRC can revoke any disqualification order made under this section.