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HMRC internal manual

Tax Credits Technical Manual

Calculation of awards: Determining whether income needs to be taken into account and applying income tapers

Calculating the daily rate

The amount of each entitlement due for a relevant period after the income rules have been considered will be divided by the number of days in that period to find the daily rate.

Note: Fractions of a penny are rounded down for income and up for entitlement.

Once a daily rate for all entitlements and all relevant periods have been calculated, the award calculation is complete

  • The dates for each entitlement period together with the net amounts and daily rates for each entitlement due in each period, are then available for use in setting up the payment profile

See worked example (TCTM07APPX2)