Spreadsheet % tax calculation

[Deleted User]

I apologize if this is the wrong forum -if necessary would someone please move for me? I am struggling with an Excel Spreadsheet as a beginner. I have total annual income minus personal tax free allowance e.g. in column D6 and would like to put in e.g. column E6 a deduction of 20% tax (E6 is D6 figure minus 20%) to pay giving the net income figure.

As a beginner I need to learn and, for now, I would be grateful to know which formula I should put in column E6 - ? something like this - =SUM(D6-20%). This would let me get started and I can do proper homework later - I would value any helpful links, thank you.

Crimson

booksurr

may not be the most elegant solution for E6 but one way is:
=d6-(d6*0.2)

[Deleted User]

Thank you very much booksurr, I really appreciate your quick reply. I'll try that one right now. I know I have to do some proper homework to learn and understand what I am (trying) doing but this will definitely help me for now.

UPDATE - it worked and I'm so pleased, thank you. I did try Googling for a solution but I found it baffling. Your helpful reply is exactly what I need for now.

Crimson

JasonPr

Probably easier:

=D6*0.8

You could also do something like:

A1
amount
30000

B1
tax rate
20%

C1
tax
=A1*B1

D1
after tax
=A1-C1

[Deleted User]

Hi,

JasonPr wrote: »

You could also do something like:

A1
amount
30000

B1
tax rate
20%

C1
tax
=A1*B1

D1
after tax
=A1-C1

have you forgotten about the tax free allowance?

[Deleted User]

Thank you all.

JasonPr and frugalmac - in A1 I could put the gross income figure after I have deducted my tax free personal allowance. I am very pleased with your help as iit lets me get started with options now. Once I have time I'll be able to look into spread sheets and understand more.

I still use my fingers to count so I have a lot of learning to do! Thank you all.

Crimson

[Deleted User]

Hi,

remember you will also have NI deductions.

Have a look at this wee gadget, might help.

d70cw6

http://www.thesalarycalculator.co.uk/salary.php

molerat

If you are PAYE a tax code of 1100 atually gives you £11009.16 tax free, £917.43 per month instead of the assumed £916.66. If you have split codes you can double (or even more) that £9.16 tax free bonus. Pay period tax is based on total annual pay to date and the tax deducted is on whole pounds only so it is not as straightforward as pay - 1/12th allowance * .2

[Deleted User]

All these links are very helpful, thank you. I'm struggling to learn about spreadsheets and, with all the helpful information here, it' s getting easier.

Crimson

polymaff

Adopt JasonPr's suggestion asap, i.e. put constants such as BasicTaxRate or PersonalAllowance in cells of their own. Then when you want to include the constant in formulae, refer to the relevant cell. It'll save you a LOT of grief as you progress your spreadsheet design.