Defining Category for which percentage should apply

[GOLDEN-EFFA]

I am trying to create a spreadsheet that will enable me to work out PAYE and
NIC tax contributions on monthly wages.

There are three categories of earnings...

Starting rate 10% £0.00 to £1,960
Basic rate 22% from £1,961 to £30,500
Higher rate 40% over £30,500


I want to be able to put a persons specific salary in one box and the
spreadsheet automatically apply the appropriate tax percentage.

I imagine I will have to use some sort of < less than > greater than
formula, but I do not know how to link it to the percentage.

Please Help

 

[GOLDEN-EFFA]

Dam!

I knew it! I've paid too much tax!

Thanks

This works a treat!

-----Original Message-----
I am trying to create a spreadsheet that will enable me to work out PAYE and
NIC tax contributions on monthly wages.

There are three categories of earnings...

Starting rate 10% £0.00 to £1,960
Basic rate 22% from £1,961 to £30,500
Higher rate 40% over £30,500


I want to be able to put a persons specific salary in one box and the
spreadsheet automatically apply the appropriate tax percentage.

I imagine I will have to use some sort of < less than > greater than
formula, but I do not know how to link it to the percentage.

Please Help

Hope this helps:

Enter the following into the cells stated:

A B C
1 Band Starting Amount Ceiling
2 10% £0 £1960
3 22% £1961 £30500
4 40% £30500 -
5
6 salary Tax Paid
7 £45000 See Formula below

.
Enter the following formula into cell C7:

=IF(A7<=C2,A7*A2,IF(AND(A7>=B3,A7<=C3),C2*A2+(A7-B3)
*A3,C2*A2+(C3-B3)*A3+(A7-B4)*A4))