hawkeye uk wrote:
|| ive set up a spreadsheet to calculate my income per week. I now
|| would like to make my tax and national insurance boxes to be
|| calculated automatically. meaning all im required to do is type in
|| my hours worked for that week.
||
|| The problem is finding a formula that can do this. The UK tax and
|| national insurance is directly proportional to how much you earn.
|| Not one fixed percentage.
||
|| Let me show us some numbers: -
||
|| Payslip 1
||
|| Total Pay = 297.62
|| Tax = 40.65 = 13.7%
|| N.I = 22.73 = 7.6%
||
|| Payslip 2
||
|| Total Pay = 242.63
|| Tax = 28.56 = 11.77%
|| N.I = 16.67 = 6.87%
||
|| as you can see the percentage increases with the wage so id like to
|| know how to get around this. all i want to be able to do is type in
|| my hours worked for that week. then that and my hourly rate shou,d
|| do the rest of the work
||
|| i dont know if ive expplained this too well or if you may need more
|| information to possibly help me. but id really appreciate any
|| feedback.
||
|| I can email my spreadsheet if anybody is willing to take a look at
|| it. give me a few pointers on how to do it differently
||
|| take care all
||
|| rob day

It's not quite as straight forward as that.
As tax due is calculated on a cumulative basis throughout the tax year, the
process is as follows:
First you need to calculate your taxable pay for the year to date. This is
done by taking the Free Pay for the current period as defined by your tax
code, from the total pay to date including the current period. You then
calculate the tax due on that amount. Subtract the tax you have paid up to
and including the last period, and that is the tax due for this current
period.

National Insurance IS a straight forward percentage of the period gross pay,
but you need to split it between Emploees Contribution and Employers
Contribution.

Have you got a set of Tax Tables?


--
Interim Systems and Management Accounting
Gordon Burgess-Parker
Director
www.gbpcomputing.co.uk