§ Mr. GibbTo ask the Chancellor of the Exchequer if he will publish the amounts, (i) in current prices, (ii) in constant 1998–99 prices and (iii) as percentages of personal income, taken by(a) income taxes, (b) national insurance contributions, (c) value-added tax, (d) other central Government indirect taxes, (e) the aggregate of (a) to (d), (f) average council tax payments and (g) the aggregate of (a) to (d) and (f) for (1) a single person, (2) a married couple without children, both working, (3) a married couple with two children, husband in work, wife not working, in each case at 50, 75, 100, 150 and 200 per cent. of average earnings for the financial year 1999–2000, taking account of changes announced in his Budget Statement on 9 March 1999, Official Report columns 173–190, and previously announced changes, and for each of the years (x) 1996–97, (y) 1997–98 and (z) 1998–99. [76246]
§ Dawn PrimaroloThe available information, which shows income tax (including child benefit and family credit/working families tax credit) and national insurance contributions, at multiples of median full-time earnings of all employees is given in the table. The figures are shown in(a) current prices and (b) as percentages of income, for (i) the years 1996–97 to 1998–99 where the figures take account of all changes announced in and before the 1998 388W Budget, and (ii) for 1999–2000 where the figures taken account of all changes announced in the 1998 and 1999 Budgets which cover 1999–2000 to 2001–02;Estimating the impact of indirect taxes is imprecise as spending patterns vary widely between households with the same composition and income. The level of council tax payments will also vary depending on where families live.
Changes announced in this and the last Budget will offer significant help to families. From October 1999 the WFTC will mean that no family with children will pay net income tax until their earnings exceed £235 per week or more than £12,000 per year. On average families with children will be £740 per year better off.
389W
Percentage of median earnings of all employees Applied percentages: 50% 75% 100% 150% 200% Single person: 1996–97 £ per week, current prices Gross Income 153.98 230.97 307.96 461.94 615.92 Income Tax 16.58 35.06 53.53 90.49 135.94 NICs 10.52 18.22 25.92 40.62 40.62 percentage of gross earnings Income Tax 10.8 15.2 17.4 19.6 22.1 NICs 6.8 7.9 8.4 8.8 6.6 Tax + NIC 17.6 23.1 25.8 28.4 28.7 1997–98 £per week, current prices Gross Income 160.37 240.55 320.73 481.10 641.46 Income Tax 16.63 35.07 53.51 90.40 137.78 NICs 11.08 19.09 27.11 41.54 41.54 percentage of gross earnings Income Tax 10.4 14.6 16.7 18.8 21.5 NICs 6.9 7.9 8.5 8.6 6.5 Tax + NIC 17.3 22.5 25.1 27.4 28.0 1998–99 £ per week, current prices Gross Income 166.73 250.09 333.46 500.19 66.92 Income Tax 17.31 36.49 55.66 94.01 143.42 NICs 11.55 19.89 28.23 43.38 43.38 percentage of gross earnings Income Tax 10.4 14.6 16.7 18.8 21.5 NICs 6.9 8.0 8.5 8.7 6.5 Tax + NIC 17.3 22.5 25.2 27.5 28.0 1999–2000 £ per week, current prices Gross Income 173.56 260.34 347.12 520.69 694.25 Income Tax 16.38 35.47 54.56 92.75 143.97 NICs 9.06 17.73 26.41 43.77 47.20 percentage of gross earnings Income Tax 9.4 13.6 15.7 17.8 20.7 NICs 5.2 6.8 7.6 8.4 6.8 Tax + NIC 14.6 20.4 23.3 26.2 27.5 Married with 2 Children: 1996–97 £ per week, current prices Gross Income 153.98 230.97 307.96 461.94 615.92 Gross Income Tax 11.41 29.89 48.37 85.33 130.78 FC 40.46 4.89 0.00 0.00 0.00 Net Income Tax -29.05 25.00 48.37 85.33 130.78 NICs 10.52 18.22 25.92 40.62 40.62 CB 19.60 19.60 19.60 19.60 19.60
390W
Percentage of median earnings of all employees Applied percentages: 50% 75% 100% 150% 200% percentage of gross earnings Net Income Tax 18.9 10.8 15.7 18.5 21.2 NICs 6.8 7.9 8.4 8.8 6.6 Net IT and NIC—CB -24.8 10.2 17.8 23.0 24.6 1997–98 £ per week, current prices Gross Income 160.37 240.55 320.73 481.10 641.46 Gross Income Tax 11.35 29.79 48.23 85.12 132.50 FC 39,74 2.14 0.00 0.00 0.00 Net Income Tax -28.39 27.65 48.23 85.12 132.50 NICs 11.08 19.09 27.11 41.54 41.54 CB 20.05 20.05 20.05 20.05 20.05 percentage of gross earnings Net Income Tax -17.7 11.5 15.0 17.7 20.7 NICs 6.9 7.9 8.5 8.6 6.5 Net IT and NIC—CB -23.3 11.1 17.2 22.2 24.0 1998–99 £ per week, current prices Gross Income 166.73 250.09 333.46 500.19 666.92 Gross Income Tax 11.83 31.01 50.18 88.53 137.94 FC 39.26 0.00 0.00 0.00 0.00 Net Income Tax -27.43 31.01 50.18 88.53 137.94 NICs 11.55 19.89 28.23 43.38 43.38 CB 20.75 20.75 20.75 20.75 20.75 percentage of gross earnings Net Income Tax -16.5 12.4 15.0 17.7 20.7 NICs 6.9 8.0 8.5 8.7 6.5 Net IT and NIC—CB -22.0 12.1 17.3 22.2 24.1 1999–2000 £ per week, current prices Gross Income 173.56 260.34 347.12 520.69 694.25 Gross Income Tax 8.69 27.78 46.87 85.06 141.11 WFTC 68.95 36.50 4.04 0.00 0.00 Net Income Tax -60.26 -8.72 42.83 85.06 141.11 NICs 9.06 17.73 26.41 43.77 47.20 CB 24.70 24.70 24.70 24.70 24.70 percentage of gross earnings Net Income Tax -34.7 -3.3 12.3 16.3 20.3 NICs 5.2 6.8 7.6 8.4 6.8 Net IT and NIC—CB -43.7 -6.0 12.8 20.0 23.6 Married 2 Earners (0 Children): 1996–97 £ per week, current prices Gross Income 153.98 230.97 307.96 461.94 615.92 Income Tax 0.00 12.07 28.96 64.95 101.90 NICs 5.64 13.34 21.04 36.43 51.83 percentage of gross earnings Income Tax 0.0 5.2 9.4 14.1 16.5 NICs 3.7 5.8 6.8 7.9 8.4 Tax + NIC 3.7 11.0 16.2 21.9 25.0 1997–98 £ per week, current prices Gross Income 160.37 240.55 320.73 481.10 641.46 Income Tax 0.00 11.72 28.83 64.86 101.74 NICs 6.12 14.13 22.15 38.19 54.23 percentage of gross earnings Income Tax 0.0 4.9 9.0 13.5 15.9 NICs 3.8 5.9 6.9 7.9 8.5 Tax + NIC 3.8 10.7 15.9 21.4 24.3
Percentage of median earnings of all employees Applied percentages: 50% 75% 100% 150% 200% 1998–99 £ per week, current prices Gross Income 166.73 250.09 333.46 500.19 666.92 Income Tax 0.00 12.27 30.04 67.49 105.84 NICs 6.43 14.77 23.11 39.78 56.45 percentage of gross earnings Income Tax 0.0 4.9 9.0 13.5 15.9 NICs 3.9 5.9 6.9 8.0 8.5 Tax + NIC 3.9 10.8 15.9 21.4 24.3 1999–2000 £ per week, current prices Gross Income 173.56 260.34 347.12 520.69 694.25 Income Tax 2.08 14.64 32.76 70.95 109.13 NICs 2.11 9.43 18.11 35.47 52.83 percentage of gross earnings Income Tax 1.2 5.6 9.4 13.6 15.7 NICs 1.2 3.6 5.2 6.8 7.6 Tax + NIC 2.4 9.2 14.6 20.4 23.3 Notes
1. Income tax payments are calculated on the basis 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. Earnings are taken to be the median gross weekly earnings of all full-time employees on adult rates with pay unaffected by absence. (Median earnings are more representative of the population as a whole than mean male full-time earnings.)
3. A family with 2 children is assumed to have both children aged under 11.
4. In line with the convention in the Tax Benefit Reference Manual, child benefit is treated as negative income tax.
5. Family Credit, although not part of the tax system, has been treated in the same way as WFTC so as to provide comparability with the tax system following the introduction of WFTC.
6. The calculations assume earnings growth for 1998–99 onwards of an illustrative 4 per cent.