Calculating tax breakdown
In the previous chapter, we passed through the salary variable, but we still need to calculate the tax. I will be doing it in line with the UK income tax rates of 2023/2024, but this can be adapted easily for any other tax system. In the following table, we have the tax rates for 2023/2024:
|
Income |
Tax rate |
|
|
Up to £12,570 |
0% |
Personal allowance |
|
£12,571 to £37,700 |
20% |
Basic rate |
|
£37,701 to £150,000 |
40% |
Higher rate |
|
over £150,000 |
45% |
Additional rate |
Table 3.1 – Tax brackets
As there are brackets and not a single fixed tax...
