E2.246 Calculation of tax credits—examples

Personal and employment tax

E2.246 Calculation of tax credits—examples

E2.246 Calculation of tax credits—examples

Calculation—no change in circumstances

Angela is a single parent with two children aged four and five. She is self-employed and works more than 30 hours a week, and has childminding costs of £160 per week.

Her relevant income for tax credits purposes in 2019/20, including her business profits, is £29,000.

As there is no change of circumstances during 2019/20, there is only one 'relevant period' in the period of award (note that if there is more than one relevant period, separate calculations are required for each).

Note that a change in circumstances will mean that the tax credits claim will be migrated to the Universal Credit. See E2.101.

The maximum rates of the various elements of tax credit available are:

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