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HMRC internal manual

Tax Credits Manual

Miscellaneous (A to B): Award calculation stage 4 - Calculating total of each award (Info)

Totalling the entitlement amounts due for each tax credit after the income rules have been considered gives the total award amount of each tax credit for each entitlement period.

Once the total tax credit amount for all entitlement periods has been calculated, the award calculation for an award year is complete.

  • The dates for each entitlement period, together with the net amounts for each entitlement due in each period, are then available for use in setting up the payment profile.
  • If the result is nil entitlement for all entitlement periods, then the outcome will be an award but at a nil rate. This will save the family submitting a completely new claim, should a change of circumstances occur later in the award period that produces an overall entitlement. A rejection notice will not be issued. If a revised award calculation results in a nil award, an award notice will be issued to notify the customers of the nil award and show the circumstances taken into account and the amount of any overpayment.

For further information on the income bands shown, follow the guidance in TCM0132360, TCM0132380 and TCM0132400.