§ 72. Mr. McKayasked the Chancellor of the Exchequer to what extent men contributors still get tax relief on £13 of their yearly contribution to National Insurance at their highest rate of Income Tax; what is the amount of this tax relief in the financial year for a man paying the highest rate of Income Tax; and to what extent employers' contributions are allowed as expenses incurred by them.
§ Sir E. BoyleAdult male employees paying the full rate of National Insurance contribution are given a deduction of £13 a year in computing their taxable income. In the case of a man liable at the standard rate with income wholly qualifying for two-ninths earned income relief this is worth £3 17s. 6d. a year. Employers' contributions rank as an expense in computing income for tax purposes.