Income Tax and National Insurance

HC Deb 30 April 1987 vol 115 cc230-1W

63. Mr. Chapman

asked the Chancellor of the Exchequer what proportion of his gross earnings a single person earning half average industrial earnings will be paid out in income tax and national insurance contributions as a result of the Budget proposals; and how this compares with 1986–87 and 1978.79.

Mr. Norman Lamont

Information for a single person on half average male, lull-time manual earnings is as follows:

	Gross Earnings £ per week	Income tax and NIC per cent.
1978–79	42.40	22.0
1986–87	90.30	21.6
1987–88	96.15	20.9

The earnings figures for 1986–87 and 1987–88 are provisional and are calculated by assuming increases of 7½ and 6½ per cent. respectively over the previous year (in accordance with the assumptions given to the Government Actuary for reviewing national insurance contributions in the autumn statement). It is assumed that national insurance contributions are paid at contracted in rates and that the only tax relief or allowance available to the taxpayer is the single person's allowance.