§ Ms HarmanTo ask the Chancellor of the Exchequer if he will update his answer to the hon. Member for Glasgow, Garscadden (Mr. Dewar) of 15 December 1992,Official Report, columns 120–26, and provide latest 633W estimates of the burden of direct and indirect taxes for 1992–93, 1993–94 and 1994–95, including figures for the community charge and council tax as appropriate.
§ Mr. Dorrell[holding answer 14 January 1994]Updated figures for 1992–93, including estimates of community charge payments, and the latest estimates for
634W 1993–94 and 1994–95 for direct and indirect taxes excluding local taxes are given in the tables on a similar basis to that provided to the hon. Member for Glasgow, Garscadden (Mr. Dewar) on 15 December 1992. No estimates of council tax payments for specimen households in 1993–94 can be provided until the 1993 family expenditure survey is published.635W
Income tax, National Insurance contributions and indirect tax payments at multiples of average earnings 1992–93 Multiples of average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 Single Amounts, £ per week Income tax 24.98 46.71 68.44 111.90 181.37 320.45 459.53 598.61 876.77 1,294.01 2,684.81 NICs 11.87 19.69 27.51 32.67 32.67 32.67 32.67 32.67 32.67 32.67 32.67 Income tax and NICs 36.84 66.40 95.95 144.57 214.04 353.12 492.20 631.28 909.44 1,326.68 2,717.48 VAT — 14.43 19.24 29.75 — — — — — — — Other indirect — 18.89 23.33 33.02 — — — — — — — Community charge — 7.19 7.53 8.20 — — — — — — — TOTAL 106.91 146.05 215.54 Percentage of earnings Income tax 14.4 17.9 19.7 21.5 26.1 30.7 33.0 34.4 36.0 37.2 38.6 NICs 6.8 7.6 7.9 6.3 4.7 3.1 2.3 1.9 1.3 0.9 0.5 Income tax and NICs 21.2 25.5 27.6 27.7 30.8 33.9 35.4 36.3 37.4 38.2 39.1 VAT — 5.5 5.5 5.7 — — — — — — — Other indirect — 7.2 6.7 6.3 — — — — — — — Community charge — 2.8 2.2 1.6 — — — — — — — TOTAL 41.0 42.0 41.3 Married, no children Amounts, £ per week Income tax 16.71 38.44 60.17 103.63 168.14 307.22 446.30 585.38 863.54 1,280.78 2,671.58 NICs 11.87 19.69 27.51 32.67 32.67 32.67 32.67 32.67 32.67 32.67 32.67 Income tax and NICs 28.57 58.13 87.68 136.30 200.81 339.89 478.97 618.05 896.21 1,313.45 2,704.25 VAT — 13.35 18.59 30.03 — — — — — — — Other indirect — 21.11 25.61 35.43 — — — — — — — Community charge — 11.13 11.47 12.16 — — — — — — — TOTAL 103.72 143.35 213.92 Percentage of earnings Income tax 9.6 14.7 17.3 19.9 24.2 29.5 32.1 33.7 35.5 36.8 38.4 NICs 6.8 7.6 7.9 6.3 4.7 3.1 2.3 1.9 1.3 0.9 0.5 Income tax and NICs 16.4 22.3 25.2 26.1 28.9 32.6 34.4 35.6 36.8 37.8 38.9 VAT — 5.1 5.3 5.8 — — — — — — — Other indirect — 8.1 7.4 6.8 — — — — — — — Community charge — 4.3 3.3 2.3 — — — — — — — TOTAL 39.8 41.2 41.0 Married, two children Amounts, £ per week Income tax -0.74 20.99 42.72 86.18 150.69 289.77 428.85 567.93 846.09 1,263.33 2,654.13 NICs 11.87 19.69 27.51 32.67 32.67 32.67 32.67 32.67 32.67 32.67 32.67 Income tax and NICs 11.12 40.68 70.23 118.85 188.36 322.44 461.52 600.60 878.76 1,296.00 2,686.80 VAT — 13.33 19.27 32.23 — — — — — — — Other indirect — 20.74 24.28 32.00 — — — — — — — Community charge — 11.47 12.15 13.51 — — — — — — — TOTAL 86.22 125.93 196.59 Percentage of earnings Income tax -0.4 8.0 12.3 16.5 21.7 27.8 30.8 32.7 34.8 36.3 38.2 NICs 6.8 7.6 7.9 6.3 4.7 3.1 2.3 1.9 1.3 0.9 0.5 Income tax and NICs 6.4 15.6 20.2 22.8 26.4 30.9 33.2 34.5 36.1 37.3 38.6 VAT — 5.1 5.5 6.2 — — — — — — — Other indirect — 8.0 7.0 6.1 — — — — — — — Community charge — 4.4 3.5 2.6 — — — — — — — TOTAL 33.1 36.2 37.7 Married, both working, no children Amounts, £ per week Income tax 1.65 19.97 41.68 85.15 128.61 226.15 349.51 488.59 766.75 1,183.99 2,574.79
Multiples of overate earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 NICs 8.09 15.91 23.73 39.38 53.92 65.34 65.34 65.34 65.34 65.34 65.34 Income tax and NICs 9.74 35.88 65.42 124.53 182.53 291.49 414.85 553.93 832.09 1,249.33 2,640.13 VAT — 17.17 22.86 34.23 — — — — — — — Other indirect — 25.58 29.47 37.26 — — — — — — — Community charge — 11.85 12.23 13.00 — — — — — — — TOTAL 90.48 129.98 209.02 Percentage of earnings Income tax 1.0 7.7 12.0 16.3 18.5 21.7 25.1 28.1 31.5 34.1 37.0 NICs 4.7 6.1 6.8 7.6 7.8 6.3 4.7 3.8 2.7 1.9 0.9 Income tax and NICs 5.6 13.8 18.8 23.9 26.2 27.9 29.8 31.9 34.2 35.9 38.0 VAT — 6.6 6.6 6.6 — — — — — — — Other indirect — 9.8 8.5 7.1 — — — — — — — Community charge — 4.5 3.5 2.5 — — — — — — — TOTAL 34.7 37.4 40.1 636W637W
Income tax, National Insurance contributions and indirect tax payments at multiples of average earnings 1993–94 Multiples of average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 Single Amounts, £ per week Income tax 26.02 48.51 71.01 118.67 190.65 334.61 478.57 622.53 910.45 1,342.33 2,781.93 NICs 12.28 20.37 28.47 33.88 33.88 33.88 33.88 33.88 33.88 33.88 33.88 Income tax and NICs 38.30 68.89 99.48 152.55 224.53 368.49 512.45 656.41 944.33 1,376.21 2,815.81 VAT — 14.71 19.64 30.16 — — — — — — — Other indirect — 19.87 24.45 34.23 — — — — — — — TOTAL 103.47 143.57 216.94 Percentage of earnings Income tax 14.5 18.0 19.7 22.0 26.5 31.0 33.2 34.6 36.1 37.3 38.6 NICs 6.8 7.5 7.9 6.3 4.7 3.1 2.4 1.9 1.3 0.9 0.5 Income tax and NICs 21.3 25.5 27.6 23.3 31.2 34.1 35.6 36.5 37.5 38.2 39.1 VAT — 5.5 5.5 5.6 —_ — — — — — — Other indirect — 7.4 6.8 6.3 — — — — — — — TOTAL 38.3 39.9 40.2 Married, no children Amounts, £ per week Income tax 17.75 40.25 62.74 107.73 177.42 321.38 465.34 609.30 897.22 1,329.10 2,768.70 NICs 12.28 20.37 28.47 33.88 33.88 33.88 33.88 33.88 33.88 33.88 33.88 Income tax and NICs 30.03 60.62 91.21 141.61 211.30 355.26 499.22 643.18 931.10 1,362.98 2,802.58 VAT — 13.51 18.87 30.57 — — — — — — — Other indirect — 22.31 27.00 37.22 — — — — — — — TOTAL 96.44 137.08 209.40 Percentage of earnings Income tax 9.9 14.9 17.4 20.0 24.6 29.8 32.3 33.9 35.6 36.9 38.5 NICs 6.8 7.5 7.9 6.3 4.7 3.1 2.4 1.9 1.3 0.9 0.5 Income tax and NICs 16.7 22.5 25.3 26.2 29.4 32.9 34.7 35.7 37.0 37.9 38.9 VAT — 5.0 5.2 5.7 — — — — — — — Other indirect — 8.3 7.5 6.9 — — — — — — — TOTAL 35.7 38.1 38.8 Married, two children Amounts, £per week Income tax -0.35 22.15 44.64 89.63 159.32 303.28 447.24 591.20 879.12 1,311.00 2,750.00 NICs 12.28 20.37 28.47 33.88 33.88 33.88 33.88 33.88 33.88 33.88 33.88 Income tax and NICs 11.93 42.52 73.11 123.51 193.20 337.16 481.12 625.08 913.00 1,344.88 2,784.48 VAT — 13.41 19.48 32.73 — — — — — — — Other indirect — 22.09 25.77 33.80 — — — — — — — TOTAL 78.01 118.36 190.04 Percentage of earnings Income tax -0.2 8.2 12.4 16.6 22.1 28.1 31.1 32.9 34.9 36.4 38.2 NICs 6.8 7.5 7.9 6.3 4.7 3.1 2.4 1.9 1.3 0.9 0.5 Income tax and NICs 6.6 15.8 20.3 22.9 26.8 31.2 33.4 34.7 36.2 37.4 38.7
Multiples of average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 VAT — 5.0 5.4 6.1 — — — — — — — Other indirect — 8.2 7.2 6.3 — — — — — — — TOTAL 28.9 32.9 35.2 Married, both working, no children Amounts, £ per week Income tax 2.87 21.60 43.77 88.76 133.75 237.63 368.07 512.03 799.95 1,231.83 2,671.43 NICs 8.36 16.45 24.55 40.75 55.87 67.76 67.76 67.76 67.76 67.76 67.76 Income tax and NICs 11.23 38.05 68.32 129.51 189.62 305.39 435.83 579.79 867.71 1,299.59 2,739.19 VAT — 15.57 21.42 33.06 — — — — — — — Other indirect — 25.88 29.92 37.96 — — — — — — — TOTAL 79.51 119.67 200.52 Percentage of earnings Income tax 1.6 8.0 12.2 16.4 18.6 22.0 25.6 28.5 31.8 34.2 37.1 NICs 4.6 6.1 6.8 7.5 7.8 6.3 4.7 3.8 2.7 1.9 0.9 Income tax and NICs 6.2 14.1 19.0 24.0 26.3 28.3 30.3 32.2 34.4 36.1 38.1 VAT — 5.8 6.0 6.1 — — — — — — — Other indirect — 9.6 8.3 7.0 — — — — — — — TOTAL 29.5 33.3 37.1 638W 639W
Income tax, National Insurance contributions and indirect tax payments at multiples of average earnings 1994–95 Multiples of average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 Single Amounts, £per week Income tax 27.34 50.73 74.13 126.83 201.69 351.41 501.13 650.85 950.29 1,399.45 2,896.65 NICs 14.16 23.51 32.87 38.44 38.44 38.44 38.44 38.44 38.44 38.44 38.44 Income tax and NICs 41.50 74.25 107.00 165.27 240.13 389.85 539.57 689.29 988.73 1,437.89 2,935.09 VAT — 16.78 22.21 33.74 — — — — — — — Other indirect — 20.86 25.68 35.87 — — — — — — — TOTAL 111.89 154.89 234.88 Percentage of earnings Income tax 14.6 18.1 19.8 22.6 26.9 31.3 33.5 34.8 36.3 37.4 38.7 NICs 7.6 8.4 8.8 6.8 5.1 3.4 2.6 2.1 1.5 1.0 0.5 Income tax and NICs 22.2 26.4 28.6 29.4 32.1 34.7 36.0 36.8 37.7 38.4 39.2 VAT — 6.0 5.9 6.0 — — — — — — — Other indirect — 7.4 6.9 6.4 — — — — — — — TOTAL 39.9 41.4 41.8 Married, no children Amounts, £ per week Income tax 20.73 44.12 67.51 120.21 195.07 344.79 494.51 644.23 943.67 1,392.83 2,890.03 NICs 14.16 23.51 32.87 38.44 38.44 38.44 38.44 38.44 38.44 38.44 38.44 Income tax and NICs 34.88 67.63 100.38 158.65 233.51 383.23 532.95 682.67 982.11 1,431.27 2,928.47 VAT — 15.38 21.27 33.76 — — — — — — — Other indirect — 23.24 28.16 38.57 — — — — — — — TOTAL 106.25 149.81 230.99 Percentage of earnings Income tax 11.1 15.7 18.0 21.4 26.1 30.7 33.0 34.4 36.0 37.2 38.6 NICs 7.6 8.4 8.8 6.8 5.1 3.4 2.6 2.1 1.5 1.0 0.5 Income tax and NICs 18.6 24.1 26.8 28.3 31.2 34.1 35.6 36.5 37.5 38.2 39.1 VAT — 5.4 5.7 6.0 — — — — — — — Other indirect — 8.3 7.5 6.9 — — — — — — — TOTAL 37.8 40.0 41.1 Married, two children Amounts, £ per week Income tax 2.27 25.67 49.06 101.76 176.62 326.34 476.06 625.78 925.22 1,374.38 2,871.58 NICs 14.16 23.51 32.87 38.44 38.44 38.44 38.44 38.44 38.44 38.44 38.44 Income tax and NICs 16.43 49.18 81.93 140.20 215.06 364.78 514.50 664.22 963.66 1,412.82 2,910.02 VAT — 15.21 21.92 36.12 — — — — — — —
Multiples of average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 Other indirect — 23.13 27.03 35.29 — — — — — — — TOTAL 87.53 130.88 211.62 Percentage of earnings Income tax 1.2 9.1 13.1 18.1 23.6 29.1 31.8 33.4 35.3 36.7 38.4 NICs 7.6 8.4 8.8 6.8 5.1 3.4 2.6 2.1 1.5 1.0 0.5 Income tax and NICs 8.8 17.5 21.9 25.0 28.7 32.5 34.4 35.5 36.8 37.7 38.9 VAT — 5.4 5.8 6.4 — — — — — — — Other indirect — 8.2 7.2 6.3 — — — — — — — TOTAL 31.2 35.0 37.7 Married, both working, no children Amounts, £ per week Income tax 4.31 25.25 48.07 94.85 141.64 257.97 396.76 546.48 845.92 1,295.08 2,792.28 NICs 9.60 18.95 28.31 47.03 63.82 76.88 76.88 76.88 76.88 76.88 76.88 Income tax and NICs 13.91 44.21 76.38 141.88 205.46 334.85 473.64 623.36 922.80 1,371.96 2,869.16 VAT — 17.58 24.03 36.82 — — — — — — — Other indirect — 27.19 31.44 39.86 — — — — — — — TOTAL 88.97 131.85 218.56 Percentage of earnings Income tax 2.3 9.0 12.8 16.9 18.9 23.0 26.5 29.2 32.3 34.6 37.3 NICs 5.1 6.8 7.6 8.4 8.5 6.8 5.1 4.1 2.9 2.1 1.0 Income tax and NICs 7.4 15.7 20.4 25.3 27.4 29.8 31.6 33.3 35.2 36.7 38.3 VAT — 6.2 6.5 6.6 — — — — — — — Other indirect — 9.7 8.4 7.1 — — — — — — — TOTAL 31.7 35.2 38.9 Notes to tables:
1. Income tax payments are calculated on the assumption that the households receive no tax reliefs other than the standard allowances and only have income from employment. All earners, including wives, are assumed to pay class 1 national insurance contributions at the contracted-in rate.
2. Since 1990–91, husbands and wives have been taxed independently. Previously the tax liability of couples depended on their joint income. To permit comparisons with earlier years, the table therefore shows income tax and national insurance contributions paid by a married couple as a proportion of their joint income, assuming, as in the earlier years, that where both partners are earners, the husband and wife share the relevant multiple of earnings in the ratio 60:40.
3. In order to provide comparability with 1978–79, when support for children was given partly through child tax allowance, child benefit is treated as a negative income tax for the married couple with two children.
4. Average earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. These are assumed to be £347.70 a week in 1992–93, £359.90 a week in 1993–94 and £374.30 a week in 1994–95, based on illustrative earnings growth assumptions of 3½ per cent. in 1993–94 and 4 per cent. in 1994–95.
5. The estimates of most indirect taxes are based on equations derived from the 1985 family expenditure survey, uprated to later years using forecasts of aggregate tax receipts. Estimates of VAT on domestic fuel and power are based on equations using results from the 1991 family expenditure survey, uprated using a similar methodology. These estimates are based on the illustrative assumption that 10 per cent. of disposable income is saved. There are wide variations in spending patterns between households with the same composition and similar incomes and estimated payments of VAT and other indirect taxes are therefore approximate, even within the income range for which figures are shown. Outside this range, the margin of error is even higher and reliable estimates cannot be made. Because of sampling variation, there can be substantial differences between estimates obtained from family expenditure surveys for different years.
6. Estimates of the burden of the community charge has been derived from the 1991 and 1992 Family Expenditure Surveys. All respondents were assumed to pay the community charge to which they were liable. The calculations include water charges in order to put the estimates on a comparable basis to the estimates for earlier years. Community charge payments are net of transitional relief and community charge benefit. Since community charge payments vary widely between households with similar incomes, estimated charge payments are only approximate.