Excel Formula for UK tax system ??

MetaPhysical

This is extremely useful because now I can embed this in my spreadsheets to give precise numbers.

eskbanker

But by the time all other variables are included it would be even more unwieldy - the tax due can be influenced by a range of other factors too, such as other taxable income streams (savings, dividends, etc), marriage allowance, Scottish rates, student loans, etc, etc.

It may be that none of these apply to you and that a simplified calculation fits your own circumstances, but obviously any attempt to create something generic and comprehensive needs to take account of plenty of such adjustments....

Nomunnofun1

eskbanker said:

But by the time all other variables are included it would be even more unwieldy - the tax due can be influenced by a range of other factors too, such as other taxable income streams (savings, dividends, etc), marriage allowance, Scottish rates, student loans, etc, etc.

It may be that none of these apply to you and that a simplified calculation fits your own circumstances, but obviously any attempt to create something generic and comprehensive needs to take account of plenty of such adjustments....

Gift Aid, SIPP contributions, child benefit cap, student loan etc etc 

eskbanker

Nomunnofun1 said:

eskbanker said:

But by the time all other variables are included it would be even more unwieldy - the tax due can be influenced by a range of other factors too, such as other taxable income streams (savings, dividends, etc), marriage allowance, Scottish rates, student loans, etc, etc.

It may be that none of these apply to you and that a simplified calculation fits your own circumstances, but obviously any attempt to create something generic and comprehensive needs to take account of plenty of such adjustments....

Gift Aid, SIPP contributions, child benefit cap, student loan etc etc 

I'm sure the hive mind could come up with others too (although one had already identified student loans.... ) so the fundamental point remains that it's one thing to be seeking an "Excel Formula for UK tax system", and an entirely different one to be calculating a straightforward PAYE deduction of income tax from a salary if making a whole bunch of assumptions to simplify it!

sausage_time

MetaPhysical said:

Here you go.  I asked ChatGPT for the script.
A1 is the cell holding the gross amount to be taxed.  It works perfectly.

=IF(A1<=12570, 0, 
IF(A1<=50270, (A1-12570)*0.2, 
IF(A1<=125140, (50270-12570)*0.2 + (A1-50270)*0.4, 
(50270-12570)*0.2 + (125140-50270)*0.4 + (A1-125140)*0.45)))

Except for viewers in Scotland.

Bookworm225

you need to make 12,570 a cell ref to a look up relative content to allow for standard PA and non standard PA (eg  marriage allowance) 

Dazed_and_C0nfused

sausage_time said:

MetaPhysical said:

Here you go.  I asked ChatGPT for the script.
A1 is the cell holding the gross amount to be taxed.  It works perfectly.

=IF(A1<=12570, 0, 
IF(A1<=50270, (A1-12570)*0.2, 
IF(A1<=125140, (50270-12570)*0.2 + (A1-50270)*0.4, 
(50270-12570)*0.2 + (125140-50270)*0.4 + (A1-125140)*0.45)))

Except for viewers in Scotland.

Yes, it could be an extremely long script for a Scottish taxpayer with non savings non dividend income, savings income and dividends income to factor in.

There are 15 tax rates to factor in then!

MetaPhysical

I never attempted for this to be an all singing, all dancing formula to cover every eventuality of the UK tax system, there are plenty of online calculators that do that.  I just wanted it a formula to work out the income tax on a given sum across different income tax thresholds to work out my tax from my four pensions.
 

eskbanker

MetaPhysical said:

I never attempted for this to be an all singing, all dancing formula to cover every eventuality of the UK tax system, there are plenty of online calculators that do that.  I just wanted it a formula to work out the income tax on a given sum across different income tax thresholds to work out my tax from my four pensions.

Yes, we know that now, but it wasn't initially apparent exactly what you wanted, given the lack of precision in your original question ("a formula please that can work out the tax due on a given amount"), which also referred to the need for "a lot of ifs and else statements in the code", implying a more complex calculation than what you actually had in mind.

If you're talking about multiple streams of PAYE income, there may be phasing issues until everything reaches a steady state, as there'll need to be four separate tax codes and they may not be correctly calibrated initially.

KidJo

I couldn't find a simple free online calculator that simulated a self assessment and tackled non-savings, savings interest and dividends as well as pension contributions due to the complexities. Couldn't get it with salarycalculator.co.uk or listentotaxman etc so I built this one https://taxgrid.co.uk