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HMRC internal manual

Tax Credits Manual

Miscellaneous (A to B): Award calculation stage 3e - Income greater than taper start point (Info)

The difference between the income amount and the taper start point for the entitlement period is used to reduce the value of the award due.

If the award is made up of several entitlements, each of the entitlements must be reduced in a set order, as follows

  • WTC work elements entitlement at the taper rate of 41%
  • WTC child care element at the taper rate of 41%
  • CTC individual elements at the taper rate of 41%
  • CTC family element at the taper rate of 41%.

The first entitlement to be considered will be the entitlement included in the award for the first entitlement period that appears highest in this order.

A taper amount is calculated by deducting the taper start point applicable to the entitlement from the income and multiplying the result by the taper rate for the entitlement, rounding down fractions of a penny.

For guidance on the rest of the taper calculation, follow the guidance in TCM0132300.