Commentary

E2.241 Calculation of tax credits—income threshold

Personal and employment tax

E2.241 Calculation of tax credits—income threshold

E2.241 Calculation of tax credits—income threshold

Note that new claims for tax credits are not possible and the Universal Credit must be applied for instead. Changes in circumstances of a claimant will also trigger migration of the claim to the Universal Credit system. See E2.101.

Entitlement depends on the 'relevant income' either:

  1.  

    •     not exceeding an income threshold (see T6.200); in which case entitlement is to the maximum rate of tax credit payable1; or

  2.  

    •     exceeding the income threshold by only so much that a rate of tax credit remains payable after tapering2

However, the income test does not apply to claimants entitled to income support (except in limited cases3), state pension credit, or income-based jobseeker's allowance4.

In the case of a person entitled to both working tax credits and child tax credit, the child tax credit threshold is greater than the figure shown in the table for the

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