We cover how to calculate your UK Income Tax in Excel. The UK follows a progressive system and therefore, the VLOOKUP function with its approximate match is particularly useful when calculating tax payments. We will start by calculating the deduction in the tax-free allowance based on the taxable income to account for incomes above £100,000. We will then identify the amount payable in each tax band. Following this, we will calculate intermediary calculations including the amount payable in the previous tax band, the rate of the current tax band and the amount payable in the current tax band. Finally, we will use these intermediary calculations to calculate the annual and monthly tax payable.
DISCLAIMER: Although I have taken great care to check all of the calculations, I am not a qualified accountant and you should not use this video to substitute financial advice. Make sure you talk to your own accountant before you use this calculator to make any financial decisions.
2020-21 UK Income Tax rates and bands:
https://www.gov.uk/income-tax-rates
VLOOKUP Function Tutorial:
https://youtu.be/KvS-1o1C--g
Calculate UK National Insurance Using VLOOKUP In Excel:
https://youtu.be/cPnqR8Vbumk
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[email protected]Overview: (0:00)
Calculate Deduction: (1:26)
Format Table: (2:55)
Intermediary Calculations: (5:04)
Calculate Outputs: (6:43)