Taxation (Hansard, 1 May 1987)

§ Mr. Straw
asked the Chancellor of the Exchequer if he will update the answer to the hon. Member for Birmingham, Perry Barr (Mr. Rooker) and the hon. Member for Stockton, South (Mr. Wrigglesworth) of 28 April 1986, Official Report, column 329, to cover 1987–88 as well as 1985–86 and 1986–87, in comparison to 1978–79.

§ Dr. McDonald
asked the Chancellor of the Exchequer if he will update, to take account of the 1987 Budget, the

Range of earnings¹ where income tax² and nic³ form a smaller proportion of gross earnings in 1987–88 than in 1978–79 under the assumptions in the Footnotes below

Family type Range of Earnings

Up to Other ranges Over

Single £ per week 38 43–64 159

percentage of average earnings⁵ 17 18–29 69

Married Couple both working⁴ No children £ per week 65 71–99 111–137 370–499 521

percentage of average earnings^{5 6} 17 19–25 30–35 99–131 139

Husband only working No children £ per week 38 43–64 200

percentage of average earnings⁵ 17 18–28 88

Two children £ per week 38 43–78 234

percentage of average earnings⁵ 17 18–34 103

Four children £ per week 86 307–562 618

percentage of average earnings⁵ 37 135–247 272

¹ In each of the ranges of percentages of average earnings shown, tax plus NIC is a smaller proportion of earnings in 1987–88 than in 1978–79. The income levels in £ per week are at 1987–88 levels, rounded to the nearest £1. It is assumed that the taxpayer has no investment income and no relief or allowance other than the appropriate personal allowance.

² Less child benefit, where appropriate.

³ At contracted-in rates.

⁴ On the assumption that husband and wife each have the same multiple of the appropriate all occupations figure for average earnings (full-time males and females respectively).

⁵ Average earnings of full-time males (all occupations) are £92.80 in 1978–79 and £227.30 in 1987–88, for females £59.60 and £149.70 respectively.

⁶ Percentage of joint income.

292W
information on tax and national insurance provided in his reply of 9 April 1986, at columns 124–25, to the hon. Member for Thurrock.

§ Mr. Norman Lamont
[pursuant to his replies, 23 March 1987, c.41, and 25 March 1987, c. 216]: Available information for 1987–88 is in the tables. Further information could be provided only at disproportionate expense.
293W

Single people and married couples liable to income tax whose main source of income is earnings from employment

Family Type 1987–88 Numbers

Range of income¹ £ per week '000

Single

Up to 38 0

39–42 0

43–64 730

65–159 3,920

Over 159 2,620

Married

Both working

Up to 64 0

65–70 0

71–99 20

100–110 10

111–137 70

138–369 3,340

370–499 870

500–520 60

Over 521 510

One working

Up to 38 0

39–42 0

43–64 0

65–200 1,470

Over 200 2,270

¹ The income levels are those for single people and childless married couples at which, if income were all earned, tax and NIC would be the same proportion of earnings in 1978–79 and 1987–88 (see previous table). Reliable estimates which take account of the numbers of children in each family are not possible.

Range of earnings¹ where income tax² and nic³ form a smaller proportion of gross earnings in 1987–88 than in 1978–79 under the assumptions in the Footnotes below
Family type		Range of Earnings
	Up to		Other ranges		Over
Single £ per week	38		43–64		159
percentage of average earnings⁵	17		18–29		69
Married Couple both working⁴ No children £ per week	65	71–99	111–137	370–499	521
percentage of average earnings^{5 6}	17	19–25	30–35	99–131	139
Husband only working No children £ per week	38		43–64		200
percentage of average earnings⁵	17		18–28		88
Two children £ per week	38		43–78		234
percentage of average earnings⁵	17		18–34		103
Four children £ per week	86		307–562		618
percentage of average earnings⁵	37		135–247		272
¹ In each of the ranges of percentages of average earnings shown, tax plus NIC is a smaller proportion of earnings in 1987–88 than in 1978–79. The income levels in £ per week are at 1987–88 levels, rounded to the nearest £1. It is assumed that the taxpayer has no investment income and no relief or allowance other than the appropriate personal allowance.
² Less child benefit, where appropriate.
³ At contracted-in rates.
⁴ On the assumption that husband and wife each have the same multiple of the appropriate all occupations figure for average earnings (full-time males and females respectively).
⁵ Average earnings of full-time males (all occupations) are £92.80 in 1978–79 and £227.30 in 1987–88, for females £59.60 and £149.70 respectively.
⁶ Percentage of joint income.

Single people and married couples liable to income tax whose main source of income is earnings from employment
Family Type	1987–88	Numbers
	Range of income¹ £ per week	'000
Single
	Up to 38	0
	39–42	0
	43–64	730
	65–159	3,920
	Over 159	2,620
Married
Both working
	Up to 64	0
	65–70	0
	71–99	20
	100–110	10
	111–137	70
	138–369	3,340
	370–499	870
	500–520	60
	Over 521	510
One working
	Up to 38	0
	39–42	0
	43–64	0
	65–200	1,470
	Over 200	2,270
¹ The income levels are those for single people and childless married couples at which, if income were all earned, tax and NIC would be the same proportion of earnings in 1978–79 and 1987–88 (see previous table). Reliable estimates which take account of the numbers of children in each family are not possible.