§ Mr. Marksasked the Chancellor of the Exchequer if he will estimate the income tax, value added tax and national insurance contributions liable to be paid by a man on average earnings with a non-employed wife and two children between 5 and 11 years of age, in May 1979, May 1980, May 1981 and May 1982.
§ Mr. BrittanIt is not possible to calculate income tax payments for a particular month since tax liability depends on income throughout the tax year. The following table gives the payments requested for a man with average earnings in the financial years 1978–79 to 1982–83.
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£ per week Income tax VAT NICs Average earnings 1978–79 18.99 2.75 6.14 94.42 1979–80 22.16 5.26 7.23 111.18 1980–81 27.72 5.75 9.02 133.65 1981–82 32.25 6.46 11.53 148.75 1982–83 33.89 6.81 14.00 160.00 Notes to table:
- (i) Income tax payments are calculated on the assumption that the man has no allowances available to him other than his married man's allowance.
- (ii) National Insurance contributions are paid at the Class I standard rate for employment not contracted out of the state additional (earnings related) pension scheme.
- (iii) VAT payments have been imputed to the family at their particular income levels by means of regression estimates based on Family Expenditure Survey data.
- (iv) "Average earnings" are defined here as the average gross earnings of full-time men whose pay was unaffected by absence; all occupations, all industries and services, Great Britain, monthly average for each financial year. The figures used for 1981–82 and 1982–83 are illustrative: they are based on the rates of earrings increase assumed by the Government Actuary in his report on the Social Security (Contributions) Bill.
- (v) The family is assumed to have no unearned income.