Farmers and Farm Workers (Income Tax)

HC Deb 11 November 1980 vol 992 cc161-2W

Mr. Beith

asked the Chancellor of the Exchequer what he estimates to be the average proportion of their gross incomes paid, respectively, by farmers and farm workers in income tax.

Mr. Peter Rees

For all employees in the agriculture and horticulture industries, it is estimated that tax deducted under the PAYE system in 1978–79 represented about 15 per cent. of pay, net of superannuation contributions but before deducting personal allowances. For the self-employed in these industries the tax charged on farming income in assessments to income tax made for the year 1978–79, expressed as a percentage of gross true income—that is before deduction of capital and personal allowances—was also about 15 per cent. As a proportion of net true income—after deducting capital allowances—it was about 23 per cent.