tax-kalculator

Contents

• Calculate take-home pay
• Utilities
• Validation
• Development
• Usage
• Release process
• How to update rates for new tax years
• License

Calculate take home pay

Create an instance of Calculator, providing values as per the following example:

Android

val calculator = Calculator(
    taxCode = "1257L",               // Required
    userPaysScottishTax = false,     // Optional (Default: false)
    userSuppliedTaxCode = false,     // Optional (Default: true)
    wages = 20000.0,                 // Required
    payPeriod = YEARLY,              // Required
    isPensionAge = false,            // Optional (Default: false)
    howManyAWeek = null,             // Optional (Default: null)
    taxYear = TaxYear.currentTaxYear, // Optional (Default: Current Tax Year)
    pensionContribution = PensionContribution(method = PERCENTAGE, contributionAmount = 10.0), // Optional (Default: null)
    studentLoanPlans = StudentLoanPlans(hasPlanOne = false, hasPlanTwo = false, hasPlanFour = false, hasPostgraduatePlan = false) // Optional (Default: null)
)

val response = calculator.run()

iOS

let calculator = Calculator(
    taxCode: "1257L",
    userPaysScottishTax: false,
    userSuppliedTaxCode = false,
    wages: 20000.0,
    payPeriod: period,
    isPensionAge: false,
    howManyAWeek: KotlinDouble(double: 35),
    taxYear: TaxYear.companion.currentTaxYear,
    pensionContribution: PensionContribution(method: PERCENTAGE, contributionAmount: 10.0), // Optional (Default: null)
    studentLoanPlans: StudentLoanPlans(hasPlanOne: false, hasPlanTwo: false, hasPlanFour: false, hasPostgraduatePlan: false) // Optional (Default: null)
)

let calculation = try calculator.run()

The default values are working in Android (and other JVM) but currently do not seem to be present in iOS, so pass in the default values for now.

Returns an object of type CalculatorResponse. This class is broken up into weekly, four_weekly, monthly and yearly. Each of these members is of type CalculatorResponsePayPeriod and the members of this class are what will return the values (relative to their PayPeriod) needed for the app, they are:

• taxToPay of type Double (This will be capped at a maximum of 50% of their wages)
• userSuppliedTaxCode of type Boolean (If this value is true, tapering will not apply in the calculation)
• maxTaxAmountExceeded of type Boolean (This will always be false unless taxToPay is adjusted for 50%)
• employeesNI of type Double
• employersNI of type Double
• wages of type Double
• taxBreakdown of type List<BandBreakdown>
• taxFree of type Double
• totalDeductions of type Double
• takeHome of type Double
• pensionContribution of type Double (This will return 0.0 if no Pension being added)
• taperingAmountDeduction of type Double (This will return 0.0 if wage is below £100,002)
• studentLoanBreakdown of type List<StudentLoanAmountBreakdown> (This will return null if no student loan plan)
• finalStudentLoanAmount of type Double (This will return 0.0 if no student loan plan)
• finalPostgraduateLoanAmount of type Double (This will return 0.0 if no postgraduate loan plan)
• otherAmount of type Double (This will return 0.0 if no other amount)
• taxableIncome of type Double

If userSuppliedTaxCode is set to true, tapering will not apply in the calculation, and it will force the calculation to be in Default Tax Rate.

For tax breakdown this is the amount of tax per tax band which has two members, percentage: Double and amount: Double.

otherAmount is the sum of pensionContribution, finalStudentLoanAmount and finalPostgraduateLoanAmount.

Utilities

Default Tax Code

Android

val taxCode = CalculatorUtils.defaultTaxCode(taxYear = 2022)

iOS

let taxCode = CalculatorUtils.shared.defaultTaxCode(taxYear: 2022)

Current Tax Year

Android

val year = CalculatorUtils.currentTaxYear()

iOS

let year = CalculatorUtils.shared.currentTaxYear()

Wage Converter

Android

val yearlyWage = WageConverterUtils.convertHourlyWageToYearly(hourlyWage = 10.0, hoursWorked = 10.0)
val yearlyWage = WageConverterUtils.convertDailyWageToYearly(dailyWage = 10.0, daysWorked = 10.0)
val yearlyWage = WageConverterUtils.convertWeeklyWageToYearly(weeklyWage = 10.0)
val yearlyWage = WageConverterUtils.convertFourWeeklyWageToYearly(fourWeeklyWage = 10.0)
val yearlyWage = WageConverterUtils.convertMonthlyWageToYearly(monthlyWage = 10.0)

val weeklyWage = WageConverterUtils.convertYearlyWageToWeekly(yearlyWage = 30000.0)
val fourWeeklyWage = WageConverterUtils.convertYearlyWageToFourWeekly(yearlyWage = 30000.0)
val monthlyWage = WageConverterUtils.convertYearlyWageToMonthly(yearlyWage = 30000.0)

iOS

let yearlyWage = WageConverterUtils.share.convertHourlyWageToYearly(hourlyWage = 10.0, hoursWorked = 10.0)
let yearlyWage = WageConverterUtils.share.convertDailyWageToYearly(dailyWage = 10.0, daysWorked = 10.0)
let yearlyWage = WageConverterUtils.share.convertWeeklyWageToYearly(weeklyWage = 10.0)
let yearlyWage = WageConverterUtils.share.convertFourWeeklyWageToYearly(fourWeeklyWage = 10.0)
let yearlyWage = WageConverterUtils.share.convertMonthlyWageToYearly(monthlyWage = 10.0)

let weeklyWage = WageConverterUtils.share.convertYearlyWageToWeekly(yearlyWage = 30000.0)
let fourWeeklyWage = WageConverterUtils.share.convertYearlyWageToFourWeekly(yearlyWage = 30000.0)
let monthlyWage = WageConverterUtils.share.convertYearlyWageToMonthly(yearlyWage = 30000.0)

Validate

Validate a tax code:

Android

val isValid = TaxCodeValidator.isValidTaxCode(taxCode = "1257L") // TaxCodeValidationResponse(true)
val isValid = TaxCodeValidator.isValidTaxCode(taxCode = "OO9999") // TaxCodeValidationResponse(false, ValidationError.WrongTaxCodePrefix)
val isValid = TaxCodeValidator.isValidTaxCode(taxCode = "9999R") // TaxCodeValidationResponse(false, ValidationError.WrongTaxCodeSuffix)
val isValid = TaxCodeValidator.isValidTaxCode(taxCode = "HELLO") // TaxCodeValidationResponse(false, ValidationError.WrongTaxCodeNumber)
val isValid = TaxCodeValidator.isValidTaxCode(taxCode = "110") // TaxCodeValidationResponse(false, ValidationError.Other)

iOS

let isValid = TaxCodeValidator.shared.isValidTaxCode(taxCode: "1257L") // TaxCodeValidationResponse(true)
let isValid = TaxCodeValidator.shared.isValidTaxCode(taxCode: "OO9999") // TaxCodeValidationResponse(false, ValidationError.WrongTaxCodePrefix)
let isValid = TaxCodeValidator.shared.isValidTaxCode(taxCode: "9999R") // TaxCodeValidationResponse(false, ValidationError.WrongTaxCodeSuffix)
let isValid = TaxCodeValidator.shared.isValidTaxCode(taxCode: "HELLO") // TaxCodeValidationResponse(false, ValidationError.WrongTaxCodeNumber)
let isValid = TaxCodeValidator.shared.isValidTaxCode(taxCode: "110") // TaxCodeValidationResponse(false, ValidationError.Other)

Validate wages:

Android

val isValidWages = WageValidator.isValidWages(wages = 1000) // true
val isAboveMinimumWages = WageValidator.isAboveMinimumWages(wages = 0.0) // false
val isBelowMaximumWages = WageValidator.isBelowMaximumWages(wages = 120000.0) // true

iOS

let isValidWages = WageValidator.shared.isValidWages(wages: 1000) // true
let isAboveMinimumWages = WageValidator.shared.isAboveMinimumWages(wages: 0.0) // false
let isBelowMaximumWages = WageValidator.shared.isBelowMaximumWages(wages: 120000.0) // true

Validate hours worked per week:

Android

val isValidHoursPerWeek = HoursDaysValidator.isValidHoursPerWeek(hours = 20) // true
val isAboveMinimumHoursPerWeek = HoursDaysValidator.isAboveMinimumHoursPerWeek(hours = 1.0) // true
val isBelowMaximumHoursPerWeek = HoursDaysValidator.isBelowMaximumHoursPerWeek(hours = 170.0) // false
val isValidHoursPerDay = HoursDaysValidator.isValidHoursPerDay(hours = 20) // true
val isAboveMinimumHoursPerDay = HoursDaysValidator.isAboveMinimumHoursPerDay(hours = 1.0) // true
val isBelowMaximumHoursPerDay = HoursDaysValidator.isBelowMaximumHoursPerDay(hours = 25.0) // false

iOS

let isValidHoursPerWeek = HoursDaysValidator.shared.isValidHoursPerWeek(hours: 20) // true
let isAboveMinimumHoursPerWeek = HoursDaysValidator.shared.isAboveMinimumHoursPerWeek(hours: 1.0) // true
let isBelowMaximumHoursPerWeek = HoursDaysValidator.shared.isBelowMaximumHoursPerWeek(hours: 170.0) // false
let isValidHoursPerDay = HoursDaysValidator.shared.isValidHoursPerDay(hours: 20) // true
let isAboveMinimumHoursPerDay = HoursDaysValidator.shared.isAboveMinimumHoursPerDay(hours: 1.0) // true
let isBelowMaximumHoursPerDay = HoursDaysValidator.shared.isBelowMaximumHoursPerDay(hours: 25.0) // false

Validate Pension:

Android

val isValidPension = PensionValidator.isValidMonthlyPension(monthlyPension = 250.0, monthlyWage = 2500.0, taxYear = TaxYear.currentTaxYear) // listOf()
val isInvalidPension = PensionValidator.isValidMonthlyPension(monthlyPension = 5900.0, monthlyWage = 2500.0, taxYear = TaxYear.currentTaxYear) // listOf(ABOVE_HUNDRED_PERCENT, ABOVE_ANNUAL_ALLOWANCE)

val isValidPension = PensionValidator.isValidYearlyPension(yearlyPension = 3000.0, yearlyWage = 30000.0, taxYear = TaxYear.currentTaxYear) // listOf()
val isInvalidPension = PensionValidator.isValidYearlyPension(yearlyPension = 70000.0, yearlyWage = 30000.0, taxYear = TaxYear.currentTaxYear) // listOf(ABOVE_HUNDRED_PERCENT, ABOVE_ANNUAL_ALLOWANCE)

iOS

let isValidPension = PensionValidator.share.isValidMonthlyPension(monthlyPension = 250.0, monthlyWage = 2500.0, taxYear = TaxYear.currentTaxYear) // listOf()
let isInvalidPension = PensionValidator.share.isValidMonthlyPension(monthlyPension = 5900.0, monthlyWage = 2500.0, taxYear = TaxYear.currentTaxYear) // listOf(ABOVE_HUNDRED_PERCENT, ABOVE_ANNUAL_ALLOWANCE)

let isValidPension = PensionValidator.share.isValidYearlyPension(yearlyPension = 3000.0, yearlyWage = 30000.0, taxYear = TaxYear.currentTaxYear) // listOf()
let isInvalidPension = PensionValidator.share.isValidYearlyPension(yearlyPension = 70000.0, yearlyWage = 30000.0, taxYear = TaxYear.currentTaxYear) // listOf(ABOVE_HUNDRED_PERCENT, ABOVE_ANNUAL_ALLOWANCE)

Development

To run all tests and coverage verification:

./gradlew check

Usage

iOS

Swift Package Manager

Because this operates as a closed source, binary dependency, Swift PM will only work with tagged releases and not branches.

https://github.com/hmrc/tax-kalculator

Simulator Architectures:

• If the framework is downloaded and linked in the project, it'll be necessary to strip unwanted architectures in a build step.
  • For example, you may want to implement something like this.

Android & JVM

Add the Github Package repository to your top-level build.gradle, along with a Github username and access token (no permissions required).

repositories {
    maven {
        url = "https://maven.pkg.github.com/hmrc/tax-kalculator"
        credentials {
            username = System.getenv("GITHUB_USER_NAME")
            password = System.getenv("GITHUB_TOKEN")
        }
    }
}

Add the dependency in the build.gradle of the module:

dependencies {
    implementation "uk.gov.hmrc:tax-kalculator-jvm:x.y.z"
}

Release process

bundle exec fastlane tag_release

Required

• A valid Bitrise access token saved in your path under the variable name BITRISE_TOKEN. See Bitrise docs.
• Two environment variables, TAX_KALC_APP_SLUG & TAX_KALC_RELEASE_WORKFLOW_ID will also need to be included in your bash/ZSH profile. These can be found in Bitwarden.

Steps executed

• Ensure git status is clean
• Ensure main branch
• Through the interactive shell, select the tag version using semantic versioning.
• Locally executes build_xcframework.sh:
  • Creates an XCFramework
  • Computes and updates the checksum in the Swift Package declaration.
• Stamps the changelog
• Commit and push the updated Package.swift and CHANGELOG.md
• Upload release artifacts to tagged Github release
• Executes release.sh to start the CI pipeline on CI.

How to update rates for new tax years

Note: As part of updating the rates, we should also check our dependencies are up-to-date. For build issues, make sure the project has updated to the right kotlin version for the version of Xcode you are running. See: https://kotlinlang.org/docs/multiplatform-compatibility-guide.html#version-compatibility

Tax Bands

Each tax band is represented with the following data structure:

internal data class TaxBand(
    override var lower: Double, // lower threshold of band
    override var upper: Double, // upper threshold of band
    override val percentageAsDecimal: Double // tax rate of band
) : Band

In TaxBands.kt update bands as specified by the business.

Usually England and Wales have the same bands. Whereas Scotland's are different.

// England and Wales
private fun restOfUK2022Bands() = listOf(
    TaxBand(0.0, 37700.00, 0.2),
    TaxBand(37700.00, 150000.00, 0.4),
    TaxBand(150000.0, -1.0, 0.45)
)

// Scotland
private fun scottish2022Bands() = listOf(
    TaxBand(0.00, 2162.00, 0.19),
    TaxBand(2162.00, 13118.00, 0.20),
    TaxBand(13118.00, 31092.00, 0.21),
    TaxBand(31092.00, 150000.00, 0.41),
    TaxBand(150000.00, -1.0, 0.46)
)

National Insurance Bands

Employee and Employer bands are represented with the following data structures:

internal data class EmployeeNIBand(
    override var lower: Double, // lower threshold of band
    override var upper: Double, // upper threshold of band
    override val percentageAsDecimal: Double // tax rate of band
) : Band

internal data class EmployerNIBand(
    override var lower: Double, // lower threshold of band
    override var upper: Double, // upper threshold of band
    override val percentageAsDecimal: Double // tax rate of band
) : Band

In EmployeeNIBands.kt and EmployerNIBands.kt update bands as specified by the business.

private val employeeNIBands2022: List<EmployeeNIBand> = listOf(
    EmployeeNIBand(9880.0, 50270.00, 0.1325),
    EmployeeNIBand(50270.0, -1.0, 0.0325)
)

private val employerNIBands2022: List<EmployerNIBand> = listOf(
    EmployerNIBand(9100.0, 50270.00, 0.1505),
    EmployerNIBand(50270.0, -1.0, 0.1505)
)

Pension allowance

Pension contribute has a annual allowance, which are represented with the following data structures:

internal data class PensionAllowance(
  val annualAllowance: Double
)

In PensionAllowances.kt update allowance as specified by the business.

private fun pensionAllowance2022() = PensionAllowance(40000.0)

private fun pensionAllowance2023() = PensionAllowance(60000.0)

Student Loan Rate

Student loan rate has a Threshold and Recovery rate (in percentage), which are represented with the following data structures:

internal data class StudentLoanRepayment(
        val yearlyThreshold: Double,
        val recoveryRatePercentage: Double,
    )

In StudentLoanRate.kt update rate as specified by the business.

private fun studentLoanRepaymentRate2023() = mapOf(
        StudentLoanPlan.PLAN_ONE to StudentLoanRepayment(22015.0, 0.09),
        StudentLoanPlan.PLAN_TWO to StudentLoanRepayment(27295.0, 0.09),
        StudentLoanPlan.PLAN_FOUR to StudentLoanRepayment(27660.0, 0.09),
        StudentLoanPlan.POST_GRADUATE_PLAN to StudentLoanRepayment(21000.0, 0.06),
    )

License

This code is open source software licensed under the Apache 2.0 License.