§ Mr. SquireTo ask the Chancellor of the Exchequer if he will publish a table showing the tax breakeven points for each year since 1959–60 for a single person, married couple, married couple with two children and married couple with four children, showing the value of such points(a) using an index set at 100 in 1959.60, (b) as a proportion of average male earnings, and (c) in 1988 prices.
§ Mr. Norman LamontThe "tax breakeven point" is the value of earnings at which income tax paid is equal to the money received through child benefit or family allowance. It therefore gives the level of earnings above which the family pays more income tax than it obtains in benefits for children. The breakeven point for single people and married couples with no children is therefore the tax threshold.
Information is given in the tables for 1959–60, 1969–70 and years from 1979–80; further information is published in appendix C of "Inland Revenue Statistics".
23W
Tax year At current prices (£) Index 1959-60=100 As proportion of average male earnings1 At 1988–89 prices (£) 1983–84 1,785 924.9 20.1 2,254 1984–85 2,005 1,038.9 20.8 2,409 1985–86 2,205 1,142.5 21.4 2,502 1986–87 2,335 1,209.8 21.0 2,567 1987–88 2,425 1,256.5 20.1 2,564 1988–892 2,605 1,349.7 19.7 2,605 Tax threshold for married man with no children 1959–60 322 100 38.7 2,809 1969–70 482 1497 34.0 2,969 1979–80 1,815 563.7 31.9 3,330 1980–81 2,145 666.1 31.4 3,381 1981–82 2,145 666.1 28.3 3,033 1982–83 2,445 759.3 29.9 3,230 1983–84 2,795 868.0 31.4 3,530 1984–85 3,155 979.8 32.8 3,790 1985–86 3,455 1,073.0 33.5 3,921 1986–87 3,655 1,135.1 32.9 4,018 1987–88 3,795 1,178.6 31.5 4,013 1988–892 4,095 1,271.7 31.0 4,095 Break-even point for married man with two children3 1959–60 729 100 87.6 6,359 1969–70 878 120.4 61.8 5,408 1979–80 3,327 456.4 58.5 6,103 1980–81 3,625 497.3 53.1 5,714 1981–82 3,855 528.8 50.8 5,451 1982–83 4,341 595.5 53.0 5,735 1983–84 4,905 672.8 55.2 6,194 1984–85 5,453 748.0 56.7 6,551 1985–86 5,849 802.3 56.7 6,637 1986–87 6,190 849.1 55.7 6,804 1987–88 6,588 903.7 54.6 6,966 1988–892 7,111 975.4 53.8 7,111 Break-even point for married man with four children3 1959–60 1,276 100 153.4 11,130 1969–70 1,418 111.1 99.9 8,735 1979–80 4,713 369.4 82.9 8,646 1980–81 5,108 400.3 74.8 8,051 1981–82 5,565 436.1 73.4 7,869 1982–83 6,237 488.8 76.2 8,240 1983–84 7,016 549.8 78.9 8,860 1984–85 7,750 607.4 80.6 9,310 1985–86 8,242 645.9 79.8 9,353 1986–87 8,725 683.8 78.5 9,590 1987–88 9,380 735.1 77.8 9,919 1988–892 10,127 793.7 76.6 10,127 1 Full time males paid at adult rates working a full week in all occupations. 2 Provisional. 3 Two children under 11; one child aged between 11 and 15; one child 16 or over.