Stage 4 - Calculating The Total Of Each Tax Credit 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 claimants(s) 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 see
