Tax Calculation Excel Sheet 2019-20

Calculate your income tax, National Insurance, and take-home pay for the 2019-20 tax year

Comprehensive Guide to UK Tax Calculation for 2019-20

The 2019-20 tax year (6 April 2019 to 5 April 2020) introduced several important changes to the UK tax system. This guide provides a detailed breakdown of how to calculate your income tax, National Insurance contributions, and other deductions for this tax year.

Key Tax Rates and Allowances for 2019-20

Income Tax Rates and Bands

For the 2019-20 tax year, the UK had the following income tax rates and bands:

Tax Band	Taxable Income	Tax Rate	England & Wales	Scotland
Personal Allowance	Up to £12,500	0%	£12,500	£12,500
Basic Rate	£12,501 to £50,000	20%	£37,500	£13,433
Higher Rate	£50,001 to £150,000	40%	£100,000	£30,932
Additional Rate	Over £150,000	45%	Over £150,000	Over £150,000

Note that Scotland had different tax bands for 2019-20:

• Starter rate: 19% (£12,501 to £14,549)
• Basic rate: 20% (£14,550 to £24,944)
• Intermediate rate: 21% (£24,945 to £43,430)
• Higher rate: 41% (£43,431 to £150,000)
• Top rate: 46% (Over £150,000)

National Insurance Contributions

For 2019-20, National Insurance contributions were calculated as follows:

• Class 1 (Employees): 12% on weekly earnings between £166 and £962, 2% on earnings above £962
• Class 1 (Employers): 13.8% on earnings above £166 per week
• Class 2 (Self-employed): £3.00 per week if profits over £6,365
• Class 4 (Self-employed): 9% on annual profits between £8,632 and £50,000, 2% on profits above £50,000

Student Loan Repayments

For the 2019-20 tax year, student loan repayment thresholds were:

• Plan 1: 9% of income above £18,935
• Plan 2: 9% of income above £25,725
• Postgraduate Loans: 6% of income above £21,000

Pension Contributions

Pension contributions reduce your taxable income through tax relief. For 2019-20:

• Basic rate taxpayers get 20% tax relief
• Higher rate taxpayers can claim additional 20% relief
• Additional rate taxpayers can claim additional 25% relief
• Annual allowance was £40,000 (reduced for high earners)
• Lifetime allowance was £1,055,000

How to Calculate Your Tax for 2019-20

Step 1: Determine Your Taxable Income

Start with your gross income and subtract:

1. Personal allowance (£12,500 for most people)
2. Pension contributions (if made through salary sacrifice)
3. Other allowable deductions

Step 2: Calculate Income Tax

Apply the appropriate tax rates to different portions of your taxable income based on the bands mentioned above.

Step 3: Calculate National Insurance

For employees, calculate 12% on earnings between £8,632 and £50,000, and 2% on earnings above £50,000.

Step 4: Calculate Student Loan Repayments (if applicable)

Apply the appropriate percentage to your income above the threshold for your loan plan.

Step 5: Calculate Take-Home Pay

Subtract income tax, National Insurance, and student loan repayments from your gross income.

Common Tax Codes for 2019-20

Tax Code	Meaning	Personal Allowance
1250L	Standard tax code	£12,500
1185L	Previous year’s standard	£11,850
BR	Basic rate (no allowance)	£0
D0	Higher rate (no allowance)	£0
D1	Additional rate (no allowance)	£0
K	Deductions exceed allowance	Varies
NT	No tax to be deducted	N/A

Important Changes from 2018-19 to 2019-20

• Personal allowance increased from £11,850 to £12,500
• Basic rate band increased from £34,500 to £37,500
• Higher rate threshold increased from £46,350 to £50,000
• Scottish tax bands were adjusted with new rates
• National Insurance thresholds were slightly increased

Using Excel for Tax Calculations

You can create a comprehensive tax calculator in Excel using the following approach:

Step 1: Set Up Your Worksheet

Create input cells for:

• Gross salary
• Pension contributions
• Student loan plan
• Tax code
• Scottish taxpayer status

Step 2: Create Calculation Formulas

Use nested IF statements or VLOOKUP to apply the correct tax rates based on income levels.

Step 3: Build the Tax Calculation

Example formula for income tax (non-Scottish):

=IF(A1<=12500,0,
           IF(A1<=50000,(A1-12500)*0.2,
           IF(A1<=150000,37500*0.2+(A1-50000)*0.4,
           37500*0.2+100000*0.4+(A1-150000)*0.45))))

Step 4: Add National Insurance Calculations

Example formula for employee NI:

=IF(A1<=8632,0,
           IF(A1<=50000,(A1-8632)*0.12,
           49101.44+(A1-50000)*0.02))

Step 5: Create a Summary Section

Display the calculated values for:

• Taxable income
• Income tax
• National Insurance
• Student loan repayments
• Take-home pay
• Effective tax rate

Advanced Tax Planning for 2019-20

For higher earners, several strategies could help optimize tax liability:

Pension Contributions

Contributing to a pension reduces taxable income. For 2019-20:

• Basic rate taxpayers get 20% relief automatically
• Higher rate taxpayers can claim additional 20% through self-assessment
• Additional rate taxpayers can claim additional 25%
• Annual allowance was £40,000 (tapered for incomes over £150,000)

Salary Sacrifice Schemes

Exchanging salary for non-cash benefits can reduce tax and NI liabilities:

• Childcare vouchers
• Cycle to work schemes
• Additional pension contributions

Marriage Allowance

For 2019-20, the marriage allowance allowed transfer of 10% of personal allowance (£1,250) between spouses if:

• One partner earns less than £12,500
• The other partner is a basic rate taxpayer
• Could save up to £250 in tax

Common Tax Calculation Mistakes to Avoid

1. Ignoring the personal allowance taper: For incomes over £100,000, the personal allowance reduces by £1 for every £2 earned above this threshold.
2. Forgetting Scottish tax rates: Scottish taxpayers have different rates and bands that must be applied correctly.
3. Incorrect student loan plan: Using the wrong repayment threshold can significantly affect calculations.
4. Not accounting for bonuses: Bonuses are taxed differently and can push you into higher tax bands.
5. Overlooking National Insurance: Both employee and employer contributions affect take-home pay.
6. Incorrect tax code application: Using the wrong tax code can lead to significant under or overpayment of tax.

Official Resources and Further Reading

For authoritative information on 2019-20 tax calculations, consult these official sources:

• GOV.UK: Income Tax rates and allowances for 2019-20
• GOV.UK: National Insurance rates and allowances 2019-20
• Institute for Fiscal Studies: Analysis of 2019-20 tax changes

Frequently Asked Questions

What was the emergency tax code for 2019-20?

The emergency tax code for 2019-20 was 1250L, which gave the standard £12,500 personal allowance. This code would be used if HMRC didn't have enough information about your income.

How was the personal allowance reduced for high earners?

For incomes above £100,000, the personal allowance was reduced by £1 for every £2 earned above this threshold. This meant that by £125,000, the personal allowance was completely eliminated.

What were the dividend tax rates for 2019-20?

For 2019-20, dividend tax rates were:

• Basic rate: 7.5%
• Higher rate: 32.5%
• Additional rate: 38.1%

The dividend allowance was £2,000, meaning no tax was due on the first £2,000 of dividend income.

How were savings interest taxed in 2019-20?

For 2019-20, the personal savings allowance allowed:

• Basic rate taxpayers: £1,000 of savings interest tax-free
• Higher rate taxpayers: £500 of savings interest tax-free
• Additional rate taxpayers: £0 allowance

What was the capital gains tax allowance for 2019-20?

The annual exempt amount for capital gains tax in 2019-20 was £12,000 for individuals and £6,000 for trusts.

Conclusion

The 2019-20 tax year introduced several important changes that affected how much tax individuals paid. Understanding these rates, allowances, and calculation methods is crucial for accurate tax planning and compliance. Whether you're using our calculator, creating your own Excel spreadsheet, or working with an accountant, having this knowledge ensures you're paying the correct amount of tax and taking advantage of all available allowances and reliefs.

Remember that while this guide provides comprehensive information about the 2019-20 tax year, tax laws can be complex. For personalized advice, especially if you have complicated financial circumstances, it's always best to consult with a qualified tax professional.