National Insurance and Income Tax

HC Deb 16 January 1989 vol 145 cc77-8W

Mr. Redwood

To ask the Chancellor of the Exchequer if he will list all of the points on the income scale for a single man with the standard allowance at which the combined national insurance and income tax marginal rates alter; and if he will list those rates.

Mr. Norman Lamont

Information for 1989–90 is given in the table. The calculations use the national insurance contribution rates for 1989–90 announced in chapter 3 of the Autumn Statement 1988 and assume indexed allowances and thresholds for income tax for 1989–90, shown in table 4.1 of the Autumn Statement.

Levels of income at which the marginal rate of income tax and national insurance contributions1 of a single person2 changes, 1989–90
Weekly income £	Per cent.
43.00	5
53.37	30
75.00	32
115.00	34
325.00	25
449.52	40
1 Class 1 national insurance contributions for an employee contracted-in to the state earnings-related pension scheme (SERPS).
2 Assumed to be non-aged with no reliefs or allowances other than the single person's allowance.