§ Mr. Winnickasked the Chancellor of the Exchequer how many of those who are now paying income tax solely because the personal allowances were not raised in the last budget in accordance with the increase in inflation have total incomes of £2,000, £2,100, £2,200, £2,300, £2,400, £2,500, £2,600, £2,700, £2,800, £2,900 and £3,000; how many of those affected are widows and how many of these are aged 60 years and over; and if he will give the average income in cases of the widows so affected.
§ Mr. RidleyI shall let the hon. Member have a reply as soon as possible.
§ Mr. Strawasked the Chancellor of the Exchequer if, pursuant to his answer of 3 December, Official Report, columns 188–192, he will publish together in the Official Report the original question at column 188, the tables at columns 189–192, and the explanatory notes which were inadvertently omitted from his original answer.
§ Mr. BrittanThe information is given in the following tables and notes.
475W
50 per cent. of Average Earnings 1978–79 1979–80 1980–81 1981–82 £ per week per cent. of gross income £ per week per cent. of gross income £ per week per cent. of gross income £ per week per cent. of gross income Gross Earnings 47.21 55.59 66.83 74.38 Single (a) Income Tax 8.17 17.31 9.23 16.60 12.12 18.14 14.38 19.33 (b) NICs 3.07 6.50 3.61 6.50 4.51 6.75 5.76 7.75 Married, both Working (a) Income Tax — — — 2.00 2.69 (b) NICs 3.07 6.50 3.61 6.50 4.51 6.75 5.76 7.75 Married+2 (a) Income Tax 3.46 6.61 5.48 8.62 7.67 10.18 9.93 11.79 (b) NICs 3.07 5.86 3.61 5.68 4.51 5.98 5.76 6.84
75 per cent. of Average Earnings 1978–79 1979–80 1980–81 1981–82 £ per week Percentage of gross income £ per week Percentage of gross income £ per week Percentage of gross income £ per week Percentage of gross income Gross Earnings 70.82 83.39 100.24 111.56 Single a) Income Tax 15.96 22.54 17.57 21.07 22.14 22.09 25.53 22.88 b) NICs 4.60 6.50 5.42 6.50 6.78 6.75 8.65 7.75 c) VAT 2.00 2.82 3.82 4.58 4.68 4.67 5.33 4.78 d) Other Indirect Taxes 7.14 10.08 8.10 9.71 9.37 9.35 11.29 10.12 e) a + b + c + d 29.70 41.94 34.91 41.86 42.97 42.87 50.80 45.54 f) Rates 2.37 3.35 2.71 3.25 3.55 3.54 4.50 4.03 g) e + f 32.07 45.28 37.62 45.11 46.52 46.41 55.30 49.57 Married, both working a) Income Tax 5.59 7.89 6.52 7.82 9.76 9.74 13.16 11.80 b) NICs 4.60 6.50 5.42 6.50 6.78 6.75 8.65 7.75 C) VAT 2.41 3.40 4.46 5.35 5.40 5.39 6.05 5.42 d) Other Indirect Taxes 9.84 13.89 10.94 13.12 12.63 12.60 15.27 13.69 e) a + b + c + d 22.44 31.69 27.34 32.79 34.57 34.49 43.13 38.66 f) Rates 2.80 3.95 3.20 3.84 4.17 4.16 5.28 4.73 g) e + f 25.24 35.64 30.54 36.62 38.74 38.65 48.41 43.39 Married + 2 a) Income Tax 11.20 14.74 13.82 15.12 17.69 16.26 21.09 17.37 b) NICs 4.60 6.06 5.42 5.93 6.78 6.23 8.65 7.12 c) VAT 2.02 2.66 3.85 4.21 4.65 4.27 5.31 4.37 d) Other Indirect Taxes 9.01 11.86 10.13 11.08 11.65 10.71 13.99 11.52 e) a + b + c + d 26.83 35.32 33.22 36.35 40.77 37.48 49.04 40.39 f) Rates 2.91 3.83 3.33 3.64 4.35 4.00 5.51 4.54 g) e + f 29.74 39.15 36.55 39.99 45.12 41.48 54.55 44.92 476W 477W
100 per cent. of Gross Earnings 1978–79 1979–80 1980–81 1981–82 £ per week Percentage of gross income £ per week Percentage of gross income £ per week Percentage of gross income £ per week Percentage of gross income Gross Earnings 94.42 111.18 133.65 148.75 Single a) Income Tax 23.75 25.15 25.91 23.30 32.16 24.06 36.69 24.67 b) NICs 6.14 6.50 7.23 6.50 9.02 6.75 11.53 7.75 c) VAT 2.84 3.01 5.44 4.89 6.68 5.00 7.66 5.15 d) Other Indirect Taxes 9.08 9.62 10.40 9.35 12.08 9.04 14.71 9.89 e) a + b + c + d 41.81 44.29 48.89 44.05 59.94 44.85 70.59 47.46 f) Rates 2.51 2.66 2.88 2.59 3.78 2.83 4.78 3.21 g) e + f 44.32 46.94 51.86 46.65 63.72 47.68 75.37 50.67
1978–79 1979–80 1980–81 1981–82 £ per week Percentage of gross income £ per week Percentage of gross income £ per week Percentage of gross income £ per week Percentage of gross income Married, both working a) Income Tax 12.85 13.61 14.72 13.24 19.78 14.80 24.32 16.35 b) NICs 6.14 6.50 7.23 6.50 9.02 6.75 11.53 7.75 c) VAT 3.26 3.45 6.06 5.45 7.37 5.51 8.35 5.61 d) Other Indirect Taxes 11.34 12.01 12.73 11.45 14.69 10.99 17.81 11.97 e) a + b + c + d 33.59 35.58 40.74 36.64 50.86 38.05 62.01 41.69 f) Rates 2.94 3.11 3.35 3.01 4.38 3.28 5.53 3.72 g) e + f 36.53 38.69 44.09 39.66 55.24 41.33 67.54 45.41 Married + 2 a) Income Tax 18.99 19.07 22.16 18.59 27.72 19.50 32.25 20.33 b) NICs 6.14 6.17 7.23 6.07 9.02 6.34 11.53 7.27 c) VAT 2.75 2.76 5.26 4.41 6.39 4.49 7.33 4.62 d) Other Indirect Taxes 10.41 10.46 11.84 9.93 13.68 9.62 16.44 10.36 e) a + b + c + d 38.29 38.46 46.49 39.01 56.81 39.95 67.55 42.59 f) Rates 3.07 3.08 3.52 2.95 4.60 3.24 5.82 3.67 g)e + f 41.36 41.54 50.01 41.96 61.41 43.19 73.37 46.26
150 per cent. of Average Earnings 1978–79 1979–80 1980–81 1981–82 £ per week Percentage of gross income £ per week Percentage of gross income £ per week Percentage of gross income £ per week Percentage of gross income Gross Earnings 141.63 166.77 200.48 223.13 Single a) Income Tax 39.33 27.77 42.59 25.54 52.21 26.04 59.00 26.44 b) NICs 7.80 5.51 8.78 5.26 11.14 5.56 15.50 6.95 c) VAT 4.59 3.24 8.85 5.31 10.89 5.43 12.48 5.59 d) Other Indirect Taxes 13.17 9.30 15.28 9.16 17.83 8.89 21.84 9.79 e) a+b+c+d 64.89 45.82 75.50 45.27 92.07 45.92 108.82 48.77 f) Rates 2.81 1.98 3.24 1.94 4.26 2.12 5.37 2.41 g) e+f 67.70 47.80 78.74 47.21 96.33 48.05 114.19 51.18 Married, Both Working a) Income Tax 28.44 20.08 31.40 18.83 39.83 19.87 46.63 20.90 b) NICs 9.21 6.50 10.84 6.50 13.53 6.75 17.29 7.75 c) VAT 4.91 3.47 9.24 5.54 11.30 5.64 12.93 5.79 d) Other Indirect Taxes 14.37 10.15 16.26 9.75 18.81 9.38 22.89 10.26 e) a+b+c+d 56.93 40.20 67.74 40.62 83.47 41.64 99.74 44.70 f) Rates 3.19 2.25 3.66 2.19 4.79 2.39 6.05 2.71 g) e+f 60.12 42.45 71.40 42.81 88.26 44.02 105.79 47.41 Married+2 a) Income Tax 34.57 23.55 38.84 22.22 47.76 22.85 54.56 23.42 b) NICs 7.80 5.31 8.78 5.02 11.14 5.33 15.50 6.65 c) VAT 4.28 2.92 8.24 4.71 10.06 4.81 11.55 4.96 d) Other Indirect taxes 13.36 9.10 15.46 8.85 17.97 8.60 21.51 9.23 e) a+b+c+d 60.01 40.89 71.32 40.81 86.93 41.59 103.12 44.26 f) Rates 3.40 2.32 3.92 2.24 5.14 2.46 6.48 2.78 g) e+f 63.41 43.20 75.24 43.05 92.07 44.05 109.60 47.04 478W479W
200 per cent. of Average Earnings 1978–79 1979–80 1980–81 1981–82 £ per week Percentage of gross income £ per week Percentage of gross income £ per week Percentage of gross income £ per week Percentage of gross income Gross Earnings 188.84 222.36 267.30 297.50 Single a) Income Tax 56.03 29.67 60.03 27.00 74.70 27.95 87.60 29.45 b) NICs 7.80 413 8.78 3.95 11.14 4.17 15.50 5.21 Married, Both Working a) Income Tax 44.02 23.31 48.07 21.62 59.88 22.40 70.29 23.63 b) NICs 12.28 6.50 14.45 6.50 18.04 6.75 23.06 7.75 Married+2 a) Income Tax 50.26 25.91 55.51 24.10 68.78 25.73 80.94 26.33 b) NICs 7.80 4.02 8.78 3.81 11.14 4.04 15.50 5.04 Notes to Tables:
1. Indirect taxes (including domestic rates and VAT) are imputed to households at different income levels by means of regression estimates based on Family Expenditure Survey Data. Such estimates however are not reliable at income levels of 50 per cent. and 200 per cent. of average earnings: consequently no figures are shown for indirect tax and domestic rate payments for households at these income levels.
2. Income tax payments are calculated on the assumption that households have no allowances available to them other than their personal allowances, and, for 1978–79 child tax allowances, where appropriate.
3. 'Average earnings' are defined here as the average gross earnings of full-time men whose pay was unaffected by absence; all ocupations, all industries and services, Great Britain, monthly average for each financial year. The figure for 1981–82 is an illustrative estimate.
4. For the working couple, the assumption is made that the couple have joint earnings of 50, 75, 100, and 200 per cent. of average gross male earnings—this is in order to facilitate comparison with the other household types. For the purposes of calculating national insurance contributions the man is assumed to earn 60 per cent. of the joint earnings (the ratio of full-time male earnings to full-time female earnings in April 1981). There would, in practice, be very few households whose joint earnings would be as low as 50 per cent. of average male earnings.
5. For the assignment of child tax allowances in 1978–79, both children in the married couple plus two children household are assumed to be under the age of 11.
6. The percentage columns express the various taxes and combinations thereof as a percentage of gross earnings plus, where appropriate, child benefit calculated at an average rate for the financial year. The weekly child benefit figures are as follows:
1978–79 5.14 1979–80 8.00 1980–81 8.54 1981–82 9.87 7. The married couple on unemployment and supplementary benefit pay no income tax or NICs on these. Reliable estimates of indirect tax and domestic rates payments estimates are not available at these income levels (see footnote 1).
8. Line (g) should not be taken to represent a total liability to tax consequent on a given earnings level, since the payments of indirect taxes and rates are only estimated on the typical expenditure pattern at that level.