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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

How to calculate the Loss of Benefit Sanction amount

Step 1

On the ‘Function Menu’

  • select ‘Award’ on the tool bar
  • select ‘View’ from the options available. You will be taken to the ‘Key Entry Data’ screen
  • enter the customer’s NINO
  • select the ‘latest’ checkbox
  • select ‘OK’
  • go to .

Step 2

  • select ‘View Calculation’. You will be taken to the ‘View Calculation’ screen
  • select ‘View Elements’. You will be taken to the ‘View Elements’ screen
  • from this screen make a note of the Working Tax Credit (WTC) amount and the number of days in the award period
  • go to .

Step 3

Calculate the sanction amount

  • divide the WTC amount by the number of days in the award period to obtain the daily rate
  • multiply the daily rate by the number of days in the sanction period to give the sanction amount.

Note: this will give you the 100% sanction amount. You will need to halve this figure if you are applying a 50% sanction.