§ Mr. Knoxasked the Chancellor of the Exchequer what has been the cost of collecting value added tax in each of the past three years.
§ Mr. Robert SheldonIt is estimated that the cost of administering value added
Married man, 2 children under 11 Grass Weekly Earnings (Notional) Income Tax Payable Employee's National Insurance Contributions Net Income (including child benefit) Real net income at 1973–74 prices £ £ £ £ £ Average of earnings in all occupations 90.20 17.60 5.90 71.90 34.80 Twice average of earnings in all occupations 180.40 47.40 7.80 130.40 63.10 Three times average of earnings in all occupations 270.60 89.70 7.80 178.20 86.30 Average earnings in October 1978—representing the year 1978–79—have been notionally estimated as follows: on the basis that in October 1977 a man on average earnings has not yet received an increase in the current pay round, it may be assumed that his earnings will rise by a further 10 per cent. to October 1978 in accordance with the Government's guideline. Average earnings in October 1977 are the new earnings survey estimate of the average weekly earnings of full-time adult males in all occupations, manual and non-manual, in April 1977, updated to October 1977 by the monthly index of average earnings.
Tax rates and allowances used in the calculations are those in the Finance Bill, as amended in Committee.
It has been assumed that the employee is not contracted out of the graduated pension scheme.
780Wtax in 1975–76, 1976–77 and 1977–78 was about £70 million, £80 million and £85 million respectively.