§ Mr. Ralph Howellasked the Chancellor of the Exchequer what is the grossed-up starting rate of income tax plus national insurance contribution, having regard to the fact that the latter is paid out of taxed income.
§ Mr. Robert SheldonAssuming a basic rate of income tax of 35 per cent. the rate of total deductions from each additional £1 earned is 40.75 per cent., including national insurance contributions of 5.75 per cent. With a basic rate of 33 per cent. the percentage rate of deductions would be 38.75. If insurance contributions are expressed as a percentage
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§ Mr. Robert SheldonAssuming that none of the children is over 11 years of age the figures are as follows:
single person and a married couple with two children, assuming incomes in April 1975 of £25, £35, £45, £55 and £65 respectively, and assuming in each case that the maximum allowable wage increases have been paid.
§ Mr. Robert SheldonThe figures are as follows:
of incremental income after basic rate tax the percentages are 8.85 and 8.58 respectively.