HC Deb 25 July 1986 vol 102 c673W
Mr. Andrew F. Bennett

asked the Chancellor of the Exchequer what would be the net revenue from a 0.5 per cent. and 1 per cent. payroll tax, taking into account costs of collection, assuming that the tax level was on the same earnings base as secondary (employers) class 1 national insurance contributions at 1985–86 incomes.

Mr. Norman Lamont

Estimates of revenue on the national insurance contributions base at 1985–86 incomes are complicated by the fact that the contribution structure was changed in the middle of the year.

The estimated revenue effect, net of costs of collection, in 1986–87 would be £0.8 billion from a 0.5 per cent. tax and £1.6 billion from a 1 per cent. tax.