Funny tax credit amounts

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  • #37931
    andyrichards
    Participant

    If the basic WTC element is supposedly £1920pa, why does it show up as £1923.55pa on just about every TC award notification I can see?

    The basic element is supposed to be the same this year as it was last year. Is this a “quirk” to do with the number of days in the year?

    #106847
    Jon__Blackwell
    Participant

    £1923.55 sounds like last year’s award

    1920/365 = 5.26027…

    .. round up to nearest penny = 5.27 x 365 = £1923.55

    This year’s should be 1921.50 (1920/366 = 5.245.. 366*5.25 = 1921.50)

    It’s the same for most other TC elements – the relevant regs are..

    7(3)[step 2] and 8(3)[step 2] of the TC(ITDR) Regs

    http://www.hmrc.gov.uk/manuals/tctmanual/attachments/tctm11000_itdr_reg.pdf

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