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HMRC internal manual

Tax Credits Manual

How to calculate whether the Taxable Social Security Benefit figure falls within the ADD daily rate percentage parameter

Step 1

Note: you will be using the Taxable Social Security Benefit figure obtained from ADD and the Taxable Social Security Benefit figure obtained from the customer’s returned IYS17 notice.

  • calculate the total amount Taxable Social Security Benefit paid to the customer as indicated by ADD
  • subtract the IYS17 Taxable Social Security Benefit figure from the ADD Taxable Social Security Benefit total figure
  • make a note of this figure difference
  • divide this figure by the ADD Taxable Social Security Benefit figure
  • multiply this by 100. This will give the difference in percentage.

For example: the IYS17 Taxable Social Security Benefit figure is 8,500. The ADD Taxable Social Security Benefit total is 12,000. Then 12,000 minus 8,500 equals 3,500. Divide 3,500 by 12,000 and this equals 0.29. Multiply 0.29 by 100 and this gives a percentage difference of 29 percent.

Note: depending on the parameter obtained from your manager, you can ascertain whether the percentage change is within the agreed parameter.