SolvedTCM1000499 | How to calculate the Loss of Benefit Sanction amount
From HM Revenue & Customs · Tax Credits Manual
Step 1
On the ‘Function Menu’
select ‘Award’ on the tool bar
select ‘View’ from the options available. You will be taken to the ‘Key Entry Data’ screen
enter the customer’s NINO
select the ‘latest’ checkbox
select ‘OK’
go to Step 2.
Step 2
select ‘View Calculation’. You will be taken to the ‘View Calculation’ screen
select ‘View Elements’. You will be taken to the ‘View Elements’ screen
from this screen make a note of the Working Tax Credit (WTC) amount and the number of days in the award period
go to Step 3.
Step 3
Calculate the sanction amount
divide the WTC amount by the number of days in the award period to obtain the daily rate
multiply the daily rate by the number of days in the sanction period to give the sanction amount.
Note: this will give you the 100% sanction amount. You will need to halve this figure if you are applying a 50% sanction.