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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Miscellaneous (A to B): Award calculation stage 3f - Compare taper amount to entitlement amount (Info)

If the taper amount is less than the maximum amount of the entitlement being considered, the taper amount is deducted from the entitlement to find the net amount due for the entitlement period and

  • the amounts of all other WTC and CTC entitlements are due in full for the period because all of the income has been used up to reduce the award
  • the taper calculation is complete for this entitlement period. The next entitlement period will then be considered as above. When all periods have been considered, the results are used to calculate the total amount of each tax credit due in each entitlement period.

Follow the guidance in TCM0132340.

If the taper amount is equal to or more than the amount of the entitlement, the entitlement will no longer be due as it has all been tapered away.

  • If this is the only or the last entitlement included in the maximum tax credit award for the entitlement period, then there will be a ‘Nil’ award for the period.
  • If this is not the only entitlement, or the last entitlement, included in the maximum tax credit award for the entitlement period, then the next entitlement in the taper order will need to be considered.

Follow the guidance in TCM0132320.