HC Deb 19 December 1991 vol 201 cc221-2W
Mr. Tom Clarke

To ask the Chancellor of the Exchequer what would be the revenue yield in(a) the first year and (b) a full year, assuming this is introduced at the beginning of 1991–92, of extending national insurance contributions to all employee taxable benefits in kind, for employees in Great Britain and Northern Ireland who earn over £8,500, distinguishing between employee and employer contributions, listing the revenue from each benefit and assuming the abolition of the national insurance upper earnings limit.

Mr. Maude

The additional revenue for the United Kingdom in a full year at 1991–92 levels is shown in the table which gives the available analysis by type of benefit. The estimates are based on an employee contribution rate of 9 per cent. and an employer contribution rate of 10.4 per cent. The estimates are calculated using the taxable value of the benefits. The yield in the first year would depend upon the administrative arrangements made to collect the new charge.

Revenue yield1
Type of benefit From employees £ million from employers
Car 400 20
Car fuel 40 20
Private medical insurance 40 40
Home telephone 10 10
Beneficial loans 20 20
Other benefits 200 230
Total 710 300
1 For a full year at 1991–92 levels of income and benefit.
2 These items are already subject to employer contributions.

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