Tax Credit Calculation sheet



Tax Credit Calculation sheet

|STEP 1 – MAX WTC | |

|Basic £1525 |£ |

|Couple/Lone Parent £1500 |£ |

|Disability £2040 |£ |

|Severe Disability £865 |£ |

|30 Hours £620 |£ |

|50 Plus – less than 30 hours/more than 30 hours £1045/£1565 |£ |

|Childcare (70% of max amount) |£ |

|TOTAL |£ |

|STEP 2 MAX CTC |£ |

|Family – normal or “baby” £545/£1090 |£ |

|Child £1445 per child |£ |

|Disabled Child £2155 |£ |

|Severely Disabled Child £863 |£ |

|TOTAL |£ |

|TOTAL WTC & CTC £ |

|STEP 3 INCOME | |

|Relevant Income |£ |

| | |

|STEP 4 – COMPARE INCOME TO THRESHOLD | |

|Income Minus £5060 - WTC |£ |

|Income Minus £13,230 - CTC |£ |

|STEP 5 – APPLY THE TAPER (37%) | |

|“Excess Income” X 37% |£ |

|STEP 6 – AMOUNT DUE | |

|Total tax credit (steps 1 & 2) |£ |

|Minus 37% excess income |£ |

|TAX CREDIT AWARD PAYABLE |£ |

PAYMENT ORDER

| |MAXIMUM AMOUNTS FROM STEPS 2 & 1 |TOTAL AWARD/PAYMENT = |

|PAYMENT – IN ORDER | | |

|1. CTC FAMILY |£ |£ |

| | | |

| | | |

|2. CTC – CHILDREN |£ |£ |

| | | |

| | | |

|3. WTC CHILDCARE |£ |£ |

| | | |

| | | |

|4. WTC REMAINDER |£ |£ |

| | | |

DEDUCT EACH “ELEMENT” FROM THE TOTAL UNTIL THE AWARD IS “USED UP”

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