§ Mr. John Mooreasked the Chancellor of the Exchequer at what gross earnings a married man, with three children and no further allowances, where he is the sole earner reaches a marginal rate of 50 per cent. income tax, and assuming that he is on PAYE, at what point he reaches the 50 per cent. marginal rate on all his withholding deductions.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 11 th February 1977; Vol. 925, c. 878], gave the following information:
Assuming that the children are not over 11 years of age, he would be liable to pay income tax at a marginal rate of 50 per cent. if his earned income exceeded £8,381. Since national insurance contributions are not payable on earnings in excess of £95 a week, this is also the point at which the marginal rate for all deductions from income reaches 50 per cent.