Forumula for calculating Corportation Tax and NI.

[marleyuk]

Hi,

I'd like help attempting to create a forumula for calculating how much corportation tax is due after each months invoices have been submitted.

I've set it up to confirm expenses, wages and dividends each month so i'd like to use this information to produce the figures for the above.

I.e. If I draw £800 salary each month, and the allowance is £650, Id like to calculate the tax payable on the remaining £150.

And if I was to draw dividends out monthly or quaterly, if I hit the threshold (£25k or what ever it is at 11%) how much additional tax would be payable on the remaining dividends (as an example it may go up to 20% payable).

The % isnt that important as I could change that anytime but the forumula itself seems like it could be quite complex.

If this doesnt make any sense let me know.

Cheers,
Ian.

 

[radfordc]

would need to see a sample workbook,
are you using a separate sheet for each month?
will you be doing a running total on salary etc,
is dividends different to salary?

 

[marleyuk]

would need to see a sample workbook,
are you using a separate sheet for each month?
will you be doing a running total on salary etc,
is dividends different to salary?

Thanks for the reply.

It is currently a seperate sheet for each month. There is a summary page which produces the running total on income, expenses, and wages & dividends is currently combined (although it could be split).

The company is fairly new so I am paying a minimum salary to myself and taking dividends every few months when needed.

With that in mind, Im thinking the calc would probably be something like upto the first £7k, no tax due, after that, its 11% because its a dividend. Does that sound correct?

Cheers,
Ian.

 

[radfordc]

As i said I would need to see a workbook you are using to make a better contribution BUT i have done a simplistic table to enable you to carry on!
Formula are under the relevant columns, can be done similar for dividands

a b c d e

salary allowance difference tax rate tax payable
£800.00 £600.00 £200.00 0.20 £40.00
=A6-B6 =C6*D6