MUSIC AND DANCE SCHEME : NATIONAL GRANTS FOR MUSIC AND DANCE NOTES OF GUIDANCE FOR PARENTS OR GUARDIANS ON COMPLETING FORM NGMD1 SCHOOL YEAR 2012/13 The grants are intended for young musicians aged 8 to 16+ and for young dancers aged 11 to 16+ with exceptional potential and dedication, and who do not have the financial means to access the best available training (see Note 31 Amount of Grant). These notes are provided for the guidance of parents, guardians or carers completing the application and declaration of income (Form NGMD1) for the national grants scheme from September 2012. The notes cover a variety of circumstances but if you have difficulty answering any of the questions, please consult the centre for advanced training (CAT) from which you obtained this form. Part 1 – Information about the child 1. Please enter all the details requested. All the information will be kept confidential and will not be made publicly available without the parents’ or guardians’ consent. 2. Children applying for a national grant for the first time for training in music must normally be between 8 and 16 years old. Those applying for dance training for the first time must normally be no younger than age 11 and usually no older than age 16. These ages include those who have not yet attained age 8 or 11 (as the case may be) but who will do so during the school year in question. 3. Information about the child’s ethnic origin is optional and will only be used to help us develop the scheme so that it is truly inclusive. You may enter: White and Black Caribbean White and Black African White and Asian Other mixed Asian or Asian British (please enter)Indian Pakistani Bangladeshi Other Asian Chinese (please enter)- Black or Black British (please enter)- Chinese Black Caribbean Black African Other Black or please enterOther ethnic group White Mixed (please enter)- 4. To qualify for a national grant the child must either – a. have been living in the British Islands throughout the three years before taking up the grant (for example, if taking up a grant on 1 September 2012, the child must have lived in the British Islands since 1 September 2009 at least); or b. be a national of a member state of the European Economic Area (EEA) or Switzerland who has been ordinarily resident in the EEA or Switzerland throughout the same period and be the child of a national of one of those member states or Switzerland who is currently employed in the United Kingdom; or c. be a refugee or the child of a refugee who has not been living outside the British Islands since he or she (or their parent) was recognised as a refugee or granted leave to enter or remain in the UK. 5. The term "British Islands" refers to England, Wales, Scotland, Northern Ireland, the Isle of Man and the Channel Islands. The member states of the European Economic Area Form NGMD1 12-13 NoG (EEA) are Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Eire (Ireland), Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden and the United Kingdom. Living abroad or residence abroad does not include temporary or occasional absences such as holidays or if the parents have been temporarily employed overseas (eg on a fixed-term contract or secondment) with no intention of settling there permanently. Part 2 – Information about the school currently attended 6. Please enter the information requested. Applicants for grant should normally be fulltime registered pupils at a maintained or independent school in the UK or being educated at home by parents. For home-educated children please enter ‘Home Educated’. Part 3 – Information about the child’s parents or guardians 7. The persons about whom details should be given on the form, and their income declared, are as follows: a. the natural father and mother of the child where they live together as husband and wife (whether or not they are married to each other) and the child normally resides with them both in the same household; or b. the parent of the child with whom the child normally resides and the spouse or civil partner (if any) of that parent where the spouse or civil partner normally resides with that parent and the child in the same household; or c. the child’s guardian appointed in accordance with section 5 of the Children Act 1989 and the spouse or civil partner (if any) of that guardian where the spouse or civil partner normally resides with that guardian and the child in the same household; or d. the person with whom the child resides in accordance with either (a) a subsisting residence order made under section 8 of the Children Act 1989; or (b) any subsisting court order (other than a residence order) which specifies who is to have actual custody or care and control of the child; or e. where a child either has no parents as defined above or the school is satisfied that no such parents can be found, and he is either looked after by a local authority or provided with accommodation within the meaning of section 105(1) of the Children Act 1989, the child shall be treated as one whose parents have no income for the purposes of the Scheme; or f. where none of the above applies, the parent is the person with whom the child normally resides in accordance with any informal care or fostering arrangement and that person’s spouse (if any) where the spouse normally resides with that person and the child in the same household. On the form, for simplicity, any male parent, step-parent or guardian as defined above is referred to as “father” and any female parent, step-parent or guardian as “mother”. 8. Parents should state whether they are married or have formed a civil partnership, or they are divorced, separated or widowed. 9. Details of parents’ employment or self-employment must be provided. Part 4 – Dependent Children and Relatives 10. An allowance may be made for all children living in the household (and for those who are students in further or higher education) who are wholly or mainly financially dependent on Form NGMD1 12-13 NoG the parents. The allowance for 2012/13 is £1,936 for each dependent, including the child applying for the MDS national grant. 11. A similar allowance may be claimed for other dependent relatives in the household. However, such persons must be related to and wholly or mainly financially dependent on the parents but would not include a spouse or civil partner. Any relative in receipt of the declarable benefits mentioned in Note 19 below would not be regarded as dependent. 12. Please enter the gross amount of all unearned income received by children in the household. This does not include money earned from part-time employment (including vacation jobs) or sums received as scholarships or student awards. Where the parents are divorced and maintenance by the parent who does not have custody is paid directly to a child, the amount of maintenance should be declared. Part 5 – Parents’ Income 13. The amount of the grant depends on the gross (before tax) family income. Please enter all details as appropriate and provide documentary evidence of income. 14. Actual income should be declared for the financial or tax year ending 5 April 2012. Self-employed persons and others who have not finally agreed their incomes for that year with Her Majesty’s Revenue & Customs (HMRC) should provide an estimate of income in that year. Persons who normally use an accounting year other than the “tax year” ending 5 April should state this fact and give the dates to which income declared refers. In these cases, the previous Financial Year would be the accounting year which ended before 5 April 2012. 15. As a general principle, gross income before tax should be declared. Income from ALL sources must be included. In ALL cases income arising outside the UK should be included. NO DEDUCTIONS should be made in respect of allowances made for tax purposes specifically: personal allowances (except for the blind person’s allowance); pension contributions; donations direct to charities; mortgage interest and income from abroad. The amount to be declared should include any amounts received as profit-related pay or by virtue of a salary surrender scheme. 16. The following documentary evidence of the earned income figures entered in Part 5 of the form must be enclosed when the form is returned to the centre for advanced training (CAT). a. Where income is derived from salary, wages, etc - a copy of Form P60 (or similar document) supplied by employers at the end of the financial year, and a copy of the parent’s last March pay advice. If pension contributions are not shown on P60 or pay advice some verification of these from employers must be produced. b. Salaried directors of private limited companies - a form P60 and an appropriate self-assessment return using the supplementary pages for employment. c. Where a parent is self-employed - a copy of the completed self-assessment return made to HMRC or, if this is not yet available, a copy of the audited business accounts for the financial year 2011-2012 or for the business accounting year which ends in that financial year, or a statement by your accountant. The actual profits for that year must be computed. Where final figures for the 2011-2012 financial year are not available, centres will undertake provisional assessments of income pending the submission of final accounts. To validate the figures submitted, CATs may later require sight of a HMRC letter or notification confirming the amount of tax due and paid. d. Benefits in kind should be shown as an amount ie the figure on which they are taxed. This will be found on an appropriate Notice of Coding issued by HMRC, or on a form P11D (or P9D) issued by an employer. Form NGMD1 12-13 NoG e. Profit related pay should be verified by means of a letter provided by an employer which should set out details of any income received as profit related pay or by virtue of a salary surrender, or similar, scheme. 17. The amounts quoted for earned income should include: a. the GROSS amount of salaries and wages, including any earnings from profit related pay, part-time employment and any sum received as bonus, commission etc, statutory sick pay, statutory maternity pay; b. profits from a business or profession - at the amount of GROSS income as shown on a self-assessment return or as agreed by HMRC for the year in question (deductions should be made only in respect of capital allowances, losses and stock relief). The amount of any balancing charges or stock relief recovery charges should be included; c. benefits in kind (free or subsidised housing, cars, mobile telephones or meals etc) at the amount agreed for tax purposes; d. members of HM Forces should include the amount of any Services Boarding School Allowance which they receive. Parents in other occupations should include any similar sum. 18. If parents enter an amount for earned income which is NET of employee’s superannuation or other pension contributions, including additional voluntary contributions paid during the year, the total of those employee’s contributions should be entered. Separate documentary evidence of those contributions may also be required. 19. The total amount received from the following social security benefits should be entered: The amount of the following social security benefits should be declared: State Retirement Pension (excluding child dependency addition) * Carer’s Allowance Jobseeker’s Allowance Bereavement Allowance (previously called Widow’s Pension) Widow’s Allowance (applies only to those widowed before 11 April 1988) Widowed Parent’s Allowance (excluding child dependency addition) * TAXABLE Incapacity Benefit TAXABLE Income Support Contribution based Employment and Support Allowance 20. Sums received from any other benefits (eg child benefit, *child dependency addition (included in Retirement Pension and Widowed Parent’s Allowance), mobility allowances, employment training, non-taxable incapacity benefit, forces disability pension, non-taxable Jobseeker’s Allowance, working families' tax credit, income support, housing benefit, widow’s payment) should NOT be included. 21. Income from letting or sub-letting of property should be declared at the amount of the NET profit agreed with HMRC. 22. Most Building Society interest, bank interest and some local authority interest is taxed at source at the basic rate. The GROSS amount of interest actually received during the financial year should be entered. 23. All other investment income (eg interest on National Savings & Investments deposits; dividends; annuities should be entered GROSS of tax. If tax was deducted at source, parents should add in the amount of tax paid or tax credit notified. The taxable amount only should be included where income is received under an insurance policy. 24. Parents receiving maintenance payments or separation allowances under a court Form NGMD1 12-13 NoG order or separation agreement or arrangements made by the Child Support Agency should enter the amount required to be paid in the year. They should include the amount of any tax recovered on the payment. 25. Where parents are making such payments under a court order or separation agreement or through the Child Support Agency the GROSS amount they paid during the year should be clearly entered at the end of Part 5 and deducted from the total income figure. 26. Parents should declare the GROSS amount of all income, (eg Building Society interest), received by children who are wholly or mainly dependent on them, excluding only sums earned from part-time employment (including vacation jobs) and sums received as scholarships or student awards. Income received under deeds of covenant should be included. 27. Amounts entered as redundancy payments/any other income should include any sums received as redundancy payments (in excess of £30,000), “golden handshakes”, etc. However the following will not be included in the calculation of relevant income:a. redundancy payments of up to £30,000. If payments exceed that amount, £30,000 will be deducted for this purpose; b. the amount of any student award received by a parent from a local authority; c. any allowance paid by an adoption agency under the Adoption and Children Act 2002 or previous similar enactment; d. residence allowances paid under the Children Act 1989; e. capital gains up to £10,600 (for each parent) for tax year 2011-2012; f. any amount paid in respect of foster children; g. the amount of any allowance paid to the parents by a local authority under the Children Act 1989; h. The 16-19 Bursary Fund which replaced Educational Maintenance Allowance paid by a local authority in respect of children who remain at school after the age of 16. Part 6 – Verification 28. As noted at paragraph 16 above, please provide the necessary documents in support of your income declaration. Part 7 – Declaration 29. Both parents (where appropriate) must sign the declaration. Failure to do so will delay or invalidate your application. Parents may enter an address for correspondence under this Part where this is different from the child’s address entered in Part 1. In any event, please enter a contact telephone number and, if you wish, your email address. Individual Training Plans (ITPs) 30. The CAT will ask you and your child to sign up to an Individual Training Plan (ITP) which will set out the programme of training, study, work and related activities that the grant holder will undertake. There will be opportunities to review progress and help your child achieve their best. The Department will ask CATs for progress reports on individual grant holders to ensure that they are receiving the training they need and that the grant is being used in the way for which it is intended. Form NGMD1 12-13 NoG Amount of Grant 31. The full amount of grant from September 2012 will be £3,577 a year. You will not have to make any contribution if your total family income before tax is £29,340 or less (after deducting £1,900 for each dependent child in the family) in the tax year ended 5 April 2012. If your family income is more you will receive a smaller grant and you may have to make a contribution as shown overleaf: {Amount of Grant, continued) Relevant income up to £29,340 £29,341 to £33,252 £33, 253 to £37,164 £37, 165 to £41,077 £41,078 to £44,989 £44,990 to £48,901 £48,902 to £52,814 £52,815 to £56,726 £56,727 to £60,638 £60,639 to £64,548 over £64,548 Amount of grant £3,577 £3,219 £2,861 £2,504 £2,146 £1,788 £1,431 £1,073 £715 £358 nil Amount of contribution nil £358 £716 £1,073 £1,431 £1,789 £2,146 £2,504 £2,862 £3,219 £3,577 You may be able to get help with your contribution (if needed) either from the centre for advanced training itself or from other sources. Form NGMD1 12-13 NoG