WTC - How do they work it out?

huffyharry

How do they work out how much WTC you get? Seen it on here before somewhere but can't find it now, it had something about 39%.

nannytone_2

39% of what?

huffyharry

dont really know think they use a threshold of about 6k then 39% of remainder, i did see it on benefit thread somewhere.

huffyharry

dont really know think they use a threshold of about 6k then 39% of remainder, i did see it on benefit thread somewhere.

huffyharry

anyone know how they calculate wtc, is above correct?

huffyharry

I found this on another website, shows you how to work wtc out.


A simple example
Peter earns £10,000 a year working 35 hours a week while Sharon works 20 hours a week for £5,000 a year. They have no other income. They have one child, Jamie, for whom they pay £100 a week in childcare. Their WTC entitlement for 2010/11 is worked out as follows:
WTC elements

Basic element - £1,920
Second adult element - £1,890
30 hour element - £790
Childcare element - (£100 p/w x 52 weeks at 80%) - £4,160
Adding these elements together gives maximum WTC of £8,760
The next stage is to deduct the WTC threshold of £6,420 from total joint income (£10,000 + 5,000) £15,000. The difference is £8,580
To work out the actual WTC entitlement take 39% of this difference (39% x £8,580 = £3,346.20) from the maximum WTC entitlement (£8,760).
So the net WTC entitlement is £5,413.80