Formula to calculate Net earnings from Gross, and deductions

Tican · 27 Jan 2012 at 23:36

Hi there,

I work in a job where they pay me weekly.

I need to create a spreadsheet to keep tabs on the hours I work and the amount I am due to be paid.

So for example, in week 1, if I work 40 hours, and get paid £6.20 an hour and have a deduction of £5 every week - not taxable. How would I work out the net income from the gross (£248)?

Thanks in advance,

gillywibble · 28 Jan 2012 at 10:06

Is the deduction fixed? When you say 'not taxable', do you mean that the £5 is not taxable but the rest is?

cb_linus · 28 Jan 2012 at 10:50

Not a clue, this might be of some use though?

N31L777 · 28 Jan 2012 at 11:13

You need to explain slightly more. As Gilly said - are the rest of your earnings taxable (bar the £5 /week)?

Rik1254 · 28 Jan 2012 at 11:25

A simple spreadsheet, Ill do a quick mockup of what youve said and post it on here to give you an idea.

Just from the information you gave (40 hours pw, 6.2 hourly wage, 5 pw deduction)

Formula view so you see how I got it.

Tican · 28 Jan 2012 at 22:31

gillywibble said:
Is the deduction fixed? When you say 'not taxable', do you mean that the £5 is not taxable but the rest is?

N31L777 said:
You need to explain slightly more. As Gilly said - are the rest of your earnings taxable (bar the £5 /week)?

All earnings are taxable, except the £5 p/w

cb_linus said:
Not a clue, this might be of some use though?

I need to do this on my own PC each week to keep tabs on the hours I do

Rik1254 said:
A simple spreadsheet, Ill do a quick mockup of what youve said and post it on here to give you an idea.

Just from the information you gave (40 hours pw, 6.2 hourly wage, 5 pw deduction)

Formula view so you see how I got it.

That is as far as I got, but I need it to work out the tax too

Thanks,

gillywibble · 29 Jan 2012 at 12:57

Tican · 29 Jan 2012 at 19:53

gillywibble said:

Nice one. That seems to work

vertica · 29 Jan 2012 at 20:15

What the guys above have done is assume you are being taxed on all of your earnings (other than the £5 deduction).
To give you an accurate answer we kneed to know more: Is this your only job? Is your tax code 747L (i.e. should the first £7475 per annum or £143.75 per week be untaxed)? They also haven't included National insurance deductions (12% of everything over £139 a week IIRC).

For example, assuming it is the simplest case, your only job and you are on the normal tax code (747L) then:

40hrs @ £6.20 = £248 pw
less £5 deduction = £243pw
Income tax = 0.2*(243-143.75) = £19.85
National insurance = 0.12*(243-139) = £12.48

Net = £210.67 although you may get a little rounding in NI and IT

Tican · 29 Jan 2012 at 22:39

vertica said:
What the guys above have done is assume you are being taxed on all of your earnings (other than the £5 deduction).
To give you an accurate answer we kneed to know more: Is this your only job? Is your tax code 747L (i.e. should the first £7475 per annum or £143.75 per week be untaxed)? They also haven't included National insurance deductions (12% of everything over £139 a week IIRC).

For example, assuming it is the simplest case, your only job and you are on the normal tax code (747L) then:

40hrs @ £6.20 = £248 pw
less £5 deduction = £243pw
Income tax = 0.2*(243-143.75) = £19.85
National insurance = 0.12*(243-139) = £12.48

Net = £210.67 although you may get a little rounding in NI and IT

Ahh, I forgot about that.

Yep only job. 747L - first £143.75 a week not taxed.

Example; Last wage slip:

Pay & Allowances:
Reg Hours - 32.25 @ 6.20p/h - £199.95
Hol Pay - 7.60 @ 6.20p/h - £47.12
Total pay - £247.07

Deductions:
Tax - £20.60
Nat Ins - £12.97
Other - £5.00
Total Deductions: £38.57

Net Pay: £208.50