How To work out Tax in Excel?

Soldato
Joined
28 Sep 2004
Posts
8,540
Hi there,

Just doing a piece for something, updating some tax, and the formula at the moment just doesn't work and is really old, does anybody know how to take the current take rates.


In Monthly.
Personal Allowance
10% - £179
20% - £2775
40% - anything above this

How could I use IF's and stuff like that to actually get this, is there a universal formula?

Thanks if you can help.
 
EDIT-

I just created this.

=IF(A2>2775,(A2/100*40),IF(A2>=179,(A2/100*20),(A2/100*10)))

That should give you what you want, you can then make your own formulae to take/add the tax from the amount. I guess Gnvq Ict actually had some use after all. :D
 
Last edited:
It's a little more complicated than that because, for example, if you earn £40,000 it isn't all taxed at 40%

Some is tax-free, some at 10%, some at 22% (I think) and the rest at 40%

You can download one I did here: http://homepages.nildram.co.uk/~chrismox/Income Tax Calculator.xls

Change the boxes for your salary, personal allowance and the different tax brackets and it will calculate the rest for you.

You can un-hide columns D & E to see some of the calculations - it's fairly basic.
 
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