Step five: calculate your child tax credit
If your income is less than or the same as the threshold, you get maximum CTC. If your income is higher than the threshold, work out 41 per cent of the difference. Your CTC is the amount worked out at Step one minus 41 per cent of the difference between your income and the threshold.
Note: this simplified calculation gives an approximate amount of CTC. Amounts are actually calculated using daily rates. See CPAG’s Welfare Benefits and Tax Credits Handbook for more details.