Excel Formula for Tax & NI

parryg

At my current job, my hours vary (paid every 2 weeks), because of this, my pay also varies. I've set up an Excel sheet too log my hours and to calculate my pay before tax and NI.

My question, is, if I have my pay before tax and NI in cell B2, what would the correct formula be to work out my pay after tax and NI? I've tried a few things myself based on my latest payslip, but I can't get the numbers to match at all.

If it helps, my tax code is 944L.

molerat

Assuming you are not a higher rate tax payer
NI is, for 2013-14 tax year, deducted at 12% on pay above £299 per 2 weeks.
Tax is a bit more complicated and is worked out on a cumulative basis so a simple formula does not work accurately. For a close approximation tax will be deducted at 20% on pay above £363.44 per 2 weeks.

Something like: take home = B2-((B2-299)*12%)-((B2-363.44)*20%) I am not very neat at excel formulae but I think that will work.

It might be easier to put your 2 week pay in here http://www.listentotaxman.com/index.php

parryg

Thanks, this works it out close enough for me as I only wanted a rough figure, it's about 10p out!

molerat

After April you will need a new formula. If your tax code stays at the standard and goes up to 1000L as it should then that number will be £384.98 and NI will be £307.