How to calculate Income Tax - UK with Excel Example
The following guide provides an example of how to calculate your Income Tax (PAYE) deductions based on your Gross Pay.
You can also download the Microsoft Excel example to help you understand the calculation or to use as a standalone PAYE calculator.
Before beginning your Income Tax calculator, you will first need to identify
which year you are planning to build the calculator for. The tables below
provide general Allowances for the Tax Years between 1999 and 2012.
Income Tax Rates 1999 - 2004
| Allowances | 1999 / 2000 | 2000
/ 2001 |
2001 / 2002 | 2002 / 2003 | 2003 / 2004 |
|---|
| Personal allowance |
4,335 |
4,385 |
4,535 |
4,615 |
4,615 |
| Income limit for Personal Allowance |
n/a |
n/a |
n/a |
n/a |
n/a | |
Personal allowance aged 65 to 74 | 5,720 |
5,790 |
5,950 |
6,100 |
6,610 |
| Personal allowance aged 75 and over | 5,980 | 6,050 | 6,260 | 6,370 | 6,720 |
|
Married couple's allowance aged 75 and over |
5,195 | 5,255 |
5,435 | 5,535 |
5,635 |
| Income limit for age-related allowances |
16,800 |
17,000 |
17,600 |
17,900 |
18,300 | | Minimum amount of married couple's allowance |
n/a |
n/a |
n/a |
2,110 |
2,150 | | Blind person's allowance |
1,380 |
1,400 |
1,450 |
1,480 |
1,510 | | Income Tax Rates | 1999 / 2000 | 2000
/ 2001 |
2001 / 2002 | 2002 / 2003 | 2003 / 2004 |
|---|
Starting Rate %
(Starting Threshold) | 10%
(0) | 10% (0) | 10% (0) | 10% (0) | 10% (0) |
Basic Rate %
(Starting Threshold) |
23% (1,500) |
22% (1,520) |
22% (1,880) |
22% (1,920) |
22% (1,960) | Higher Rate %
(Starting Threshold) |
40% (28,000) |
40% (28,400) |
40% (29,400) |
40% (29,900) |
40% (30,500) | Additional Rate %
(Starting Threshold) |
n/a | n/a |
n/a | n/a | n/a |
Income Tax Rates 2004 - 2009
| Allowances | 2004 / 2005 |
2005 / 2006 | 2006 /
2007 | 2007 / 2008 |
2008 / 2009 |
|---|
| Personal allowance | 4,745 | 4,895 | 5,035 | 5,225 | 6,035 |
| Income limit for Personal Allowance |
n/a |
n/a | n/a |
n/a | n/a |
|
Personal allowance aged 65 to 74 |
6,830 | 7,090 |
7,280 | 7,550 |
9,030 | | Personal allowance aged 75 and over | 6,950 | 7,220 | 7,420 | 7,690 |
9,180 |
|
Married couple's allowance aged 75 and over |
5,795 |
5,975 | 6,135 | 6,365 |
6,625 |
| Income limit for age-related allowances |
18,900 |
19,500 | 20,100 |
20,900 | 21,800 |
| Minimum amount of married couple's allowance |
2,150 |
2,280 | 2,350 |
2,440 | 2,540 |
| Blind person's allowance | 1,560 | 1,610 | 1,660 | 1,730 | 1,800 |
| Income Tax Rates | 2004 / 2005 |
2005 / 2006 | 2006 /
2007 | 2007 / 2008 |
2008 / 2009 |
Starting Rate %
(Starting Threshold) | 10% (0) | 10%
(0) | 10% (0) | 10% (0) | Abolished |
Basic Rate %
(Starting Threshold) |
22% (2,020) |
22% (2,090) |
22% (2,150) |
22% (2,230) |
20% (0) |
Higher Rate %
(Starting Threshold) |
40% (31,400) |
40% (32,400) |
40% (33,300) |
40% (34,600) |
40% (34,800) |
Additional Rate %
(Starting Threshold) |
n/a | n/a |
n/a | n/a | n/a |
Income Tax Rates 2009 - 2012
| Allowances | 2009 / 2010 |
2010 / 2011 | 2011 / 2012 | 2012 / 2013 |
2013 / 2014 |
|---|
| Personal allowance | 6,475 | 6,475 | 7,475 |
| |
| Income limit for Personal Allowance |
n/a | 100,000 |
100,000 |
|
| |
Personal allowance aged 65 to 74 | 9,490 |
9,490 | 9,490 | | | | Personal allowance aged 75 and over | 9,640 | 9,640 | 10,090 |
| |
|
Married couple's allowance aged 75 and over |
6,965 |
6,965 | 7,295 |
| |
| Income limit for age-related allowances |
22,900 | 22,900 |
24,000 |
|
| | Minimum amount of married couple's allowance |
2,670 | 2,670 |
2,800 |
|
| | Blind person's allowance | 1,890 | 1,890 | 1,980 |
| |
| Income Tax Rates | 2009 / 2010 |
2010 / 2011 | 2011 / 2012 | 2012 / 2013 |
2013 / 2014 |
Starting Rate %
(Starting Threshold) | Abolished |
Abolished | Abolished | | |
Basic Rate %
(Starting Threshold) |
20% (0) |
20% (0) |
20% (0) | | |
Higher Rate %
(Starting Threshold) |
40% (37,400) |
40% (37,400) |
40% (35,000) | | |
Additional Rate %
(Starting Threshold) | n/a | 50%
(150,000) | 50% (150,000) | | |
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