Quote:
Originally Posted by Kizzy
Noticed a post on facebook saying WTC from 2016 entitlement max will drop to £3,850 but minimum wage will rise to £7.20, WTC can be claimed if you work 16hrs a week.
16 X £7.20= £5,990.40
Therefore won't everyone earn too much to claim any WTC?
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No, £3850 is the new level where it starts dropping from the maximum. From there, it drops by 48p for every pound you earn over that amount per year. E.g. If you earn £6000 per year you will get
(6000 - 3850) x 0.48 = £1032 less than the maximum.
I believe maximum WTC per year for most circumstances is around £5000, the person in the above example would now get £3968 per year.
Worth noting that that person would currently be getting maximum allowance, so this hypothetical person - already on a low wage - is now over £1000 a year worse off.
You are otherwise right though, seems like it will be technically impossible for anyone to be receiving the "maximum amount", because anyone earning less than £3850 is below the minimum hours requirement.