Income Tax (Hansard, 7 March 1984)

§ Mr. Ralph Howell
asked the Chancellor of the Exchequer how much income tax was received during the last year for which information is available from each of the following income groups (a) under £2,000, (b) £2,000 to £3,000, (c) £3,000 to £4,000, (d) £4,000 to £5,000, (e) £5,000 to £6,000, (f) £6,000 to £7,000, (g) £7,000 to £8,000, (h) £8,000 to £9,000, (i) £9,000 to £10,000, (j) £10,000 to £11,000, (k) £11,000 to £12, 000, (l) £12,000 and (m) £20,000.

§ Mr. Moore
Figures are available on the basis of income tax due in respect of income in a year, not tax received in the year. Provisional estimates for 1983–84, based on projections from the 1981–82 survey of personal incomes, are as follows:
583W

Range of total income (lower limit)^* Total income tax†

£ £ million

under 2,000 neg

2,000 300

3,000 900

4,000 1,500

5,000 2,000

6,000 2,200

7,000 2,300

8,000 2,300

9,000 2,200

10,000 2,100

11,000 1,800

12,000 8,200

20,000 6,900

Total 32,700

^* Total income includes only those forms of income liable to tax.

† Amounts have been rounded to the nearest £100 million, neg = less than £50 million.

§ Mr. Ralph Howell
asked the Chancellor of the Exchequer if he will give the percentage of income tax paid by taxpayers with earnings less than the average male manual earnings and those with less than half the overall male manual earnings in 1982–83; and what is the estimated percentage for 1983–84.

§ Mr. Moore
Latest estimates based on projections from the 1981–82 survey of personal incomes, are as follows:

Percentage of total income tax paid by taxpayers with incomes below:

Average male manual earnings Half average male manual earnings

1982–83 26 3

1983–84 26 3

The figures for income tax relate to tax units, combining the incomes of husbands and wives. Nontaxable income, such as child benefit, is excluded.

§ Mr. Ralph Howell
asked the Chancellor of the Exchequer if he will state the tax breakeven point for a married couple with one child in 1982–83, and give an estimate for 1983–84 expressed at current and at constant prices and as a percentage of average manual earnings.

§ Mr. Moore
The level of income at which liability to income tax equals receipt of child benefit for a married couple with one child is as follows:

At current prices At constant 1982–83 prices As percentage of average manual earnings^*

£ £ £

1982–83 3,393 3,393 47.3

1983–84† 3,850 3,666 50.1

^* For a full time adult male.

† The general index of retail prices has been assumed to increase by 5 per cent, between 1982–83 and 1983–84 and average male manual earnings by 7 per cent.

§ Mr. Greenway
asked the Chancellor of the Exchequer if he will detail the number of people who paid tax at work in each of the last six months; and if he will make a statement.

§ Mr. Moore
I regret that the information on which to base a reply is not available, but in 1981–82 (the latest year584W for which such records available) it is estimated that there were 26 million employees who had tax deduction cards for some period of the year.

Range of total income (lower limit)^*	Total income tax†
£	£ million
under 2,000	neg
2,000	300
3,000	900
4,000	1,500
5,000	2,000
6,000	2,200
7,000	2,300
8,000	2,300
9,000	2,200
10,000	2,100
11,000	1,800
12,000	8,200
20,000	6,900
Total	32,700
^* Total income includes only those forms of income liable to tax.
† Amounts have been rounded to the nearest £100 million, neg = less than £50 million.

Percentage of total income tax paid by taxpayers with incomes below:
	Average male manual earnings	Half average male manual earnings
1982–83	26	3
1983–84	26	3

	At current prices	At constant 1982–83 prices	As percentage of average manual earnings^*
	£	£	£
1982–83	3,393	3,393	47.3
1983–84†	3,850	3,666	50.1
^* For a full time adult male.
† The general index of retail prices has been assumed to increase by 5 per cent, between 1982–83 and 1983–84 and average male manual earnings by 7 per cent.