TCTM07APPX1 - Calculation of entitlement: the rates and how to use them
Appendix 1 - The rates and how to use them
Note: At points in the calculation when the legislation does not require the numbers to be rounded the calculations display numbers only to 3 decimal places (dp). This is for presentational ease and does not affect the remainder of the calculation. As a result there may be occasion when your own calculation may vary slightly to the award, however this will be rare and due only to the rounding applied by the computer system. For most cases, the 3 figure (dp) number will be used in the rounding but occasionally the last figure displayed will show a zero, for example 1.120. An assumption is therefore made that there are further numbers after the 0, (for example, 1.1201) which when rounding up will result in 1.13. In these cases only, the rounding is shown as 1.120 = 1.13.
Working Tax Credit
The Working Tax Credits (Entitlement and Maximum Rate) Regulations 2002, Schedule 2
WTC includes two entitlements:
- Work elements
- Child care elements
| WTC Work Elements | 2023/2024 rates | 2024/2025 rates | Calculation TY 2024/2025 (365 days) | Maximum daily rate |
|---|---|---|---|---|
| Basic element | £2,280 |
£2,435 | £2,435 / 365 = £6.671 rounded up = | £6.68 |
| Second adult element | £2,340 | £2,500 | £2,500 / 365 = £6.849 rounded up = | £6.85 |
| Lone parent element | £2,340 | £2,500 | £2,500 / 365 = £6.849 rounded up = | £6.85 |
| Disability element | £3,685 | £3,935 | £3,935/ 365 = £10.780 rounded up = | £10.79 |
| Severe disability element | £1,595 | £1,705 | £1,705 / 365 = £4.671 rounded up = | £4.68 |
| 30 hour element | £950 | £1,015 | £1,015 / 365 = £2.780 rounded up = | £2.79 |
| 50 plus element (16-29 hours) | Withdrawn | Withdrawn | - | - |
| 50 plus (30+ hours) | Withdrawn | Withdrawn | - | - |
Note: The 50+ element ceased 6 April 2012
WTC Childcare Element
The Working Tax Credits (Entitlement and Maximum Rate) Regulations 2002, Regs 20(2) and (3)
The WTC childcare element is worth up to 70% of allowable childcare costs (up to a limit). Maximum eligible costs are £175 per week where there is 1 child in relevant childcare and £300 where 2 or more children are in relevant childcare.
| Max childcare costs | 2023/2024 rates | 2024/2025 rates | Calculation TY 2024/2025 | Maximum daily rate |
|---|---|---|---|---|
| 1 child | £175.00 | £175.00 | £175.00 / 7 = £25.00 rounded up = | £25.00 |
| 2 or more children | £300.00 | £300.00 | £300.00 / 7 = £42.857 rounded up = | £42.86 |
Child Tax Credit
CTC includes two entitlements:
- “Individual Elements” and
- “Family Element”
The CTC Individual Elements includes the following elements:
| Elements | 2023/2024 rates | 2024/2025 rates | Calculation TY 2024/2025 (365 days) | Daily rate |
|---|---|---|---|---|
| Child Element | £3,235 | £3,455 | £3,455 / 365 = £9.465 rounded up = | £9.47 |
| Young person element | £3,235 | £3,455 | £3,455 / 365 = £9.465 rounded up = | £9.47 |
Disability element (includes child element) |
£3,905 | £4,170 | £4,170 / 365 = £ 11.424 rounded up = | £11.43 |
| Severe disability element (includes child element) | £5,480 | £5,850 | £5,850/ 365 = £ 16.027 rounded up = | £16.03 |
The CTC Family Elements includes the following elements:
| Elements | 2023/2024 rates | 2024/2025 rates | Calculation TY 2024/2025 (365 days) | Daily rate |
|---|---|---|---|---|
| Family element | £545 | £545 | £545 / 365 = £1,493 rounded up = | £1.50 |
Income Thresholds TY 2024/2025
| Thresholds | 2023/2024 rates | 2024/2025 rates | Calculation TY 2024/2025 (365 days) | Daily rate |
|---|---|---|---|---|
| WTC threshold | £7,455 | £7,955 | £7,955 / 365 = £21.794 | £21.80 |
| WTC withdrawal rate | 41% | 41% | - | - |
| CTC only threshold | £18,725 | £19,995 | £19,995 / 365 = £54.780 | £54.79 |
| CTC 2nd threshold | Withdrawn | Withdrawn | - | - |
| CTC withdrawal rate | 41% | 41% | - | - |
| Income rise disregard | £2,500 | £2,500 | - | - |
| Income fall disregard | £2,500 | £2,500 | - | - |