§ Mr. LilleyTo ask the Chancellor of the Exchequer (1) what are his latest estimates of the average weekly payments for the tax year(a) 1997–98 and (b) 1998–99 for (i) NICs, (ii) income tax, (iii) VAT, (iv) indirect taxes excluding VAT and (v) council tax for a married couple with the male earning and the female not earning with two children, on total family earnings of (1) 75 per cent., (2) 100 per cent. and (3) 150 per cent. of average gross male full-time earnings, excluding any 1997 Budget measures whose revenue effect does not occur until at least the tax year 1999–2000; [41975]
(2) what are his latest estimates of the average weekly payments for the tax year (a) 1997–98 and (b) 1998–99 for (i) NICs, (ii) income tax, (iii) VAT, (iv) indirect taxes excluding VAT and (v) council tax for a married couple with the male earning and the female not earning with no children, on total family earnings of (1) 75 per cent., (2) 100 per cent. and (3) 150 per cent. of average gross male full-time earnings excluding any 1997 Budget measures whose revenue effect does not occur until at least the tax year 1999–2000; [41977]
(3) what are his latest estimates of the average weekly payments for the tax years (a) 1997–98 and (b) 1998–99 for (a) NICs, (b) income tax, (c) VAT, (d) indirect taxes excluding VAT and (e) council tax for a single person on (i) 75 per cent., (ii) 100 per cent. and (iii) 150 per cent. of average gross male full-time earnings, excluding any 1997 Budget measures whose revenue effect does not occur until at least the tax year 1999–2000. [41973]
§ Dawn Primarolo[holding answer 14 May 1998]: The available information, which shows tax and NIC payments at multiples of median male full-time earnings, is given in the table. Changes already announced, which will take effect in 1999, will offer significant help to families, reducing the burden of tax and NICs for a family with two children on median earnings. A one earner couple with 2 children with half median male earnings (£187.25 per week) will gain around £20 a week from the introduction of the Working Families Tax Credit. No family with children with earnings less than £220 per week will pay income tax. Child benefit for the eldest child will be increased by £2.50, the largest real increase since 1978. And all employees earning more than the Lower Earnings Limit will gain £1.28 a week from the abolition of the NICs entry fee.
293WCalculations of indirect taxes were dealt with in my answer to the hon. Member for Gordon (Mr. Bruce) of 5 May 1998, Official Report, columns 331–34.
Income Tax and National Insurance at multiples of median full-time male earnings Applied percentages 75 100 150 1997–98 Single Gross Income 268.80 358.40 537.60 Income Tax 41.57 62.18 103.39 NICs 21.92 30.88 41.54 Percentage of earnings Income Tax 15.5 17.3 19.2 NICs 8.2 8.6 7.7 Married no children Gross Income 268.80 358.40 537.60 Income Tax 36.29 56.90 98.11 NICs 21.92 30.88 41.54 Percentage of earnings Income Tax 13.5 15.9 18.3 NICs 8.2 8.6 7.7 Married with 2 children Gross Income 268.80 358.40 537.60 Income Tax 16.24 36.85 78.06 NICs 21.92 30.88 41.54 Percentage of earnings Income Tax 6.0 10.3 14.5 NICs 8.2 8.6 7.7 1998–99 Single Gross Income 280.88 374.50 561.75 Income Tax 43.57 65.10 108.17 NICs 22.97 32.33 43.38 Percentage of earnings Income Tax 15.5 17.4 19.3 NICs 8.2 8.6 7.7 Married no children Gross Income 280.88 374.50 561.75 Income Tax 38.08 59.62 102.69 NICs 22.97 32.33 43.38 Percentage of earnings Income Tax 13.6 15.9 18.3 NICs 8.2 8.6 7.7 Married with 2 children Gross Income 280.88 374.50 561.75 Income Tax 17.33 38.87 81.94 NICs 22.97 32.33 43.38 Percentage of earnings Income Tax 6.2 10.4 14.6 NICs 8.2 8.6 7.7 Notes:
1. Income tax payments are calculated on the basis that the households receive no tax reliefs other than the standard allowances and have income only from employment. All earners are assumed to pay Class 1 national insurance contributions at the contracted-in rate.
2. Earnings are taken to be the median gross weekly earnings of all full-time male employees on adult rates with pay unaffected by absence. (Median earnings are more representative of the population as a whole than mean) The level of earnings in 1998–99 is based on a stylised assumption in line with the actual outturn for the year to January 1998.
3. In line with the convention in the Tax Benefit Reference Manual, Child Benefit is treated as a negative Income Tax.
§ Mr. LilleyTo ask the Chancellor of the Exchequer (1) what are his latest estimates of the average weekly payments for the tax year 1996–97 for(a) NICs, (b) income 294W tax, (c) VAT, (d) indirect taxes excluding VAT and (e) council tax, for a single person on (i) 75 per cent., (ii) 100 per cent. and (iii) 150 per cent. of average gross male full-time earnings; [41972]
(2) what are his latest estimates of the average weekly payments for the tax year 1996–97 for (a) NICs, (b) income tax, (c) VAT, (d) indirect taxes excluding VAT and (e) council tax for a married couple with the male earning and the female not earning with no children, on total family earnings of (1) 75 per cent., (2) 100 per cent. and (3) 150 per cent. of average gross male full-time earnings; [41976]
(3) what are his latest estimates of the average weekly payments for the tax year 1996–97 for (a) NICs, (b) income tax, (c) VAT, (d) indirect taxes excluding VAT, (e) council tax for a married couple with the male earning and the female not earning with two children on total family earnings of (i) 75 per cent., (ii) 100 per cent. And (iii) 150 per cent. of average gross male full-time earnings. [41974]
§ Dawn Primarolo[holding answer 14 May 1998]: The available information, which shows tax and NICs payments at multiples of median male full-time earnings, is given in the table:
Income Tax and National Insurance at multiples of median full-time male earnings Applied percentages 75 100 150 Single Gross Income 256.73 342.30 513.45 Income Tax 42.24 61.78 102.85 NICs 20.79 29.35 40.62 Percentage of earnings Income Tax 16.1 18.0 20.0 NICs 8.1 8.6 7.9 Married no children Gross Income 256.73 342.30 513.45 Income Tax 36.07 56.61 97.69 NICs 20.79 29.35 40.62 Percentage of earnings Income Tax 14.1 16.5 19.0 NICs 8.1 8.6 7.9 Married with 2 children Gross Income 256.73 342.30 513.45 Income Tax with CB 16.47 37.01 78.09 NICs 20.79 29.35 40.62 Percentage of earnings Income Tax 6.4 10.8 15.2 NICs 8.1 8.6 7.9 Notes:
1. Income tax payments are calculated on the basis that the households receive no tax reliefs other than the standard allowances and have income only from employment. All earners are assumed to pay Class 1 national insurance contributions at the contracted-in rate.
2. Earnings are taken to be the median gross weekly earnings of all full-time male employees on adult rates with pay unaffected by absence. (Median earnings are more representative of the population as a whole than mean). The level of earnings in 1998–99 is based on a stylised assumption in line with the actual outturn for the year to January 1998.
3. In line with the convention in the Tax Benefit Reference Manual, Child Benefit is treated as a negative Income Tax.