TCTM07001 - Calculation of entitlement

Introduction to award calculations

The Tax Credits (Income Thresholds and Determination of Rates) Regulation 2002

The amount of a tax credit award is based on the "award period" and the "entitlement periods" within the award.

A claim for tax credits made before the beginning of a tax year, results in an award of tax credits for the whole of the tax year or until the date the award is terminated.

If tax credits are paid after the beginning of a tax year, then any award of tax credit will be for the period beginning with the date of the claim and ending at the end of the tax year or until the award is terminated.

However, there can be more than one "entitlement period" in an award for tax credits. For example a change of circumstances may occur that could result in an increase or decrease in the maximum rate of tax credits.