Taxation Table

Datafile Software

Taxation Table

The tax bands and rates which are required in this part of the payroll System Profiles must be correct in accordance with the latest details issued by your tax office. Every Spring Datafile Software sends customers who have subscribed to the Datafile Gold update, via their reseller, a program update that updates the latest tax table as part of the year end.A second update is sent later for further changes to the tax table that may apply as at week-7 (usually). If you are in any doubt, contact your reseller for the latest tables.

Tax calculations are based on percentage tax rates between income bands. The taxation table shows the rates for these bands, both of which may be altered here. It is normal for any tax-free income — which is entirely based on an employee’s tax coding — to be excluded from this table.

Cumulative Tax Band

The tax table is assumed to start at zero income (after removing any tax-free income). Key the upper limit for each tax band in strict sequence of magnitude. As you key <Enter> against each tax band, note that the starting income for the next income band is automatically displayed for you.

Rate %

Key the appropriate tax percentage rate for each band. For example, 29% is keyed as 29.00. Leave those bands which are not required at zero.

Scot %

The Scottish Parliament has a devolved power that allows it to vary tax rates by up to 3% either way.Whilst it is not currently in use this option is available for the future and is currently set as per the remainder of the UK.

Basic rate entry number

The basic tax rate has a special significance, being the rate at which tax is deducted in the absence of other factors. For example, "Week 1” basis tax is always calculated on the basic rate until the next higher band is reached. Key the entry number for the income band which specifies the basic rate of tax.Whilst historically and currently this has been band 1, there has in the past a special band of lower rate tax, and so the basic tax rate of tax became band 2.

K-Code Max

‘K’ tax codes operate slightly differently than other tax codes – other tax codes have a free pay element which is removed from the pay before tax is calculated, K codes have an additional pay element which is added to the pay before tax is calculated.Current rules state that only 50% of pay can be deducted as tax for K-codes and this is set here.

SLC Threshold
Rate %

This is the earnings for a year that an employee must reach before any student loan deductions are made and the percentage of pay that is to be deducted.