[2025] UKUT 061 (AAC)

Section 10 of the 2002 Act sets out the conditions to entitlement for working tax credit. It provides:

“10

Entitlement

(1)

The entitlement of the person or persons by whom a claim for working tax credit has been made is dependent on him, or either or both of them, being engaged in qualifying remunerative work.

(2)

Regulations may for the purposes of this Part make provision—

(a)

as to what is, or is not, qualifying remunerative work, and

(b)

as to the circumstances in which a person is, or is not, engaged in it.

(3)

The circumstances prescribed under subsection (2)(b) may differ by reference to—

(a)

the age of the person or either of the persons,

(b)

whether the person, or either of the persons, is disabled,

(c)

whether the person, or either of the persons, is responsible for one or more children or qualifying young persons, or

(d)

any other factors.

(4)

Regulations may make provision for the purposes of working tax credit as to the circumstances in which a person is or is not responsible for a child or qualifying young person.”

Regulation 4 of the 2002 Regulations provides, insofar as relevant to the issues in these appeals, as follows:

“Entitlement to basic element of Working Tax Credit: qualifying remunerative work

4.

—(1) Subject to the qualification in paragraph (2), a person shall be treated as engaged in qualifying remunerative work if, and only if, he satisfies all of the following conditions (and in the case of the Second condition, one of the variations in that condition).

First condition

The person is employed or self-employed and—

(a)

is working at the date of the claim; or

(b)

has an offer of work which he has accepted at the date of the claim and the work is expected to commence within 7 days of the making of the claim.

In relation to a case falling within sub-paragraph (b) of this condition, references in the second third and fourth conditions below to work which the person undertakes are to be construed as references to the work which the person will undertake when it commences.

In such a case the person is only to be treated as being in qualifying remunerative work when he begins the work referred to in that sub-paragraph.

Second condition

First variation: In the case of a single claim, the person—

…

(c)

is aged at least 25 and undertakes not less than 30 hours work per week; or

(d)

is aged at least 60 and undertakes not less than 16 hours work per week.

…

Third condition

The work which the person undertakes is expected to continue for at least 4 weeks after the making of the claim or, in a case falling within sub-paragraph (b) of the first condition, after the work starts.

Fourth condition

The work is done for payment or in expectation of payment …”

The term “self-employed”, used in the first condition, is defined in regulation 2(1) of the 2002 Regulations:

“’self-employed’ means engaged in carrying on a trade, profession or vocation on a commercial basis and with a view to the realisation of profits, either on one’s own account or as a member of a business partnership and the trade, profession or vocation is organised and regular.”