§ Mr. Peter Rees
It is estimated that to allow tax relief in respect of personal allowances at a rate no higher than the basic rate would yield in the region of £300 million in a full year at 1981–82 income levels. This figure assumes that couples who would find it advantageous to elect for separate taxation of the wife's earnings would be able to do so, even if they do not currently find it advantageous.
There is greater than usual uncertainty about this estimate since industrial action has prevented a more precise calculation being made on the Inland Revenue
Percentage of earnings Percentage of income Weekly Earnings Single Married Married with 2 children Married with 4 children £ per cent. per cent. per cent. per cent 30 11.3 7.7 4.0 2.3 60 24.5 17.1 13.4 11.0 80 27.8 22.3 19.9 17.3 100 29.8 23.4 23.2 21.3 150 32.5 29.5 27.7 26.2 200 33.8 31.6 30.1 28.8 250 33.3 31.2 30.1 29.0 300 34.7 32.5 31.5 30.6
National insurance contributions are at the not contracted out rate of 7.75 per cent. up to an earnings limit of £200 per week.374W
computer. I have provided the information in respect of mortgage interest to the hon. Member in a previous answer on 15 April.—[Vol. 3, c. 155.]
§ Mr. Ralph Howell
asked the Chancellor of the Exchequer what is his estimate of the increased revenue from income tax in 1981–82 deducted from those earnings less than the national average wage, as a result of the decision not to index tax allowances in accordance with section 22 of the Finance Act 1977.
§ Mr. Peter Rees
About £1.1 billion in full year terms for those with estimated incomes in 1981–82 less than the national average wage, taken as the annual equivalent of the average weekly earnings of full-time male manual workers. This is somewhat higher than the average annual income of taxpayers as many people are not paid for 52 full weeks' work in a year.