HC Deb 10 April 1986 vol 95 cc193-4W
Mr. Frank Field

asked the Chancellor of the Exchequer if he will express, in percentage terms, changes in the combined effect of tax and national insurance contributions in 1978–79, and the latest available date, taking 1956–57 tax year as the base for those on two-thirds average earnings, average earnings, twice, five and 10 times average earnings.

Mr. Moore

[pursuant to his reply, 7 March 1986, c. 284]: Information is given in the following tables.

Income Tax and Income Tax + NIC as percentages of gross earnings
Multiples of average earnings
1 2 5 10
SINGLE
1956–57
Tax 10.4 16.6 24.8 40.5 55.2
Tax + NIC 14.0 18.9 26.0 41.0 55.4

Multiples of average earnings
1 2 5 10
1978–79
Tax 21.0 25.0 29.5 50.5 66.6
Tax + NIC 27.5 31.5 33.7 52.2 67.5
1986–87*
Tax 20.4 22.9 27.3 43.3 51.6
Tax + NIC 29.4 31.9 33.3 45.7 52.8
MARRIED
1956–57
Tax 5.1 11.2 22.0 38.9 54.2
Tax + NIC 8.6 13.5 23.1 39.4 54.4
1978–79
Tax 15.4 21.3 27.2 48.8 65.7
Tax + NIC 21.9 27.8 31.4 50.5 66.5
1986–87*
Tax 15.0 19.5 24.9 41.8 50.9
Tax + NIC 24.0 28.5 30.9 44.2 52.1

Changes in real net earnings after Income Tax and NIC (1956–57=100)
Multiples of average earnings
1 2 5 10
SINGLE
1978–79 124.9 125.3 132.8 120.1 108.3
1986–87* 146.4 148.0 158.9 162.2 186.6
MARRIED
1978–79 126.8 123.9 132.4 121.1 109.0
1986–87* 147.9 145.9 158.5 162.1 185.3
* Provisional

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