How are Child Tax Credit and Working Tax Credit Calculated?
• The new Tax Credits will not have limits on the amount of savings a person can have. (Currently, there is an upper capital limit of 8000). • The new Tax Credits will be paid for a period of up to one year, running from the 6th April to the 5th April in accordance with the tax year. E.g. If a claim is made in July it will be paid to the following April. (Currently, WFTC and DPTC are paid for 26 weeks). • The new Tax Credits will be renewed once a year. (Currently, both WFTC and DPTC must be renewed every 26 weeks). • In general, awards will be based on your annual gross income for the previous tax year. (Currently, WFTC and DPTC are assessed on your last 2 monthly or 5 weekly payslips). • Increases in income of up to 2500 will have no effect on your award – and you do not need to notify the changes until the end of the award. But, be warned! If you choose not to notify changes in your income during the life of the award this could result in an over or under payment. • Your award will
