§ Mr. Strawasked the Chancellor of the Exchequer if he will publish in the Official Report tables showing (a) the proportion in percentage terms, (b) the amount in current prices and (c) the amount in constant 1985–86 prices of personal income taken by taxation and rates for the year 1986–87, taking account of any changes announced in his Budget statement and any previously announced changes, and for each of the years 1978–79, 1979–80, 1980–81, 1981–82, 1982–83, 1983–84, 1984–85 and 1985–86 for each level of average earnings, each category of taxpayer, and each category of taxation and rates, in the manner of the answers of 3 April 1985, Official Report, column 676, and of 2 July 1985, Official Report, column 112.
§ Mr. Moore[pursuant to his reply, 18 March 1986]: Figures for all the years requested could be provided only at disproportionate cost. Figures for the years 1984–85 to 1986–87 are in the table.
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50 per cent. of average earnings Single Married couple no children Married both working Married couple with two children £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income 1984–85 (a) Income tax 16.18 17.14 17.5 9.55 10.11 10.3 0.00 0.00 0.0 9.55 10.11 9.0 (b) NIC 8.32 8.82 9.0 8.32 8.82 9.0 8.32 8.82 9.0 8.32 8.82 7.9 (c) (a) plus (b) 24.51 25.95 26.5 17.87 18.93 19.3 8.32 8.82 9.0 17.87 18.93 16.9 1985–86 (a) Income tax 17.25 17.25 17.3 10.04 10.04 10.0 0.00 0.00 0.0 10.04 10.04 8.8 (b) NIC 8.99 8.99 9.0 8.99 8.99 9.0 7.59 7.59 7.6 8.99 8.99 7.9 (c) (a) plus (b) 26.24 26.24 26.3 19.03 19.03 19.0 7.59 7.59 7.6 19.03 19.03 16.7 1986.87 (a) Income tax 17.98 17.37 16.8 10.62 10.26 9.9 0.00 0.00 0.0 10.62 10.26 8.8 (b) NIC 9.62 9.30 9.0 9.62 9.30 9.0 6.63 6.40 6.2 9.62 9.30 7.9 (c) (a) plus (b) 27.60 26.67 25.8 20.24 19.55 18.9 6.63 6.40 6.2 20.24 19.55 16.7
75 per cent. of average earnings Single Married couple no children Married both working Married couple with two children £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income 1984–85 (a) Income tax 30.06 31.83 21.7 23.42 24.80 16.9 11.86 12.55 8.5 23.42 24.80 15.4 (b) NIC 12.49 13.22 9.0 12.49 13.22 9.0 12.49 13.22 9.0 12.49 13.22 8.2 (c) VAT 6.03 6.39 4.3 5.44 5.76 3.9 6.82 7.22 4.9 6.05 6.41 4.0 (d) Other indirect 11.16 11.82 8.0 13.15 13.93 9.5 16.16 17.11 11.6 13.26 14.04 8.7 (e) (a) plus (b) plus (c) plus (d) 59.74 63.26 43.1 54.50 57.71 39.3 47.33 50.12 34.1 55.22 58.47 36.3 (f) Domestic rates 5.19 5.50 3.7 5.20 5.5 3.7 5.91 6.26 4.3 5.23 5.54 3.4 (g) (e) plus (f) 64.93 68.76 46.8 59.70 63.22 43.0 53.24 56.38 38.4 60.45 64.01 39.8 1985–86 (a) Income tax 32.23 32.23 21.5 25.02 25.02 16.7 12.30 12.30 8.2 25.02 25.02 15.3 (b) NIC 13.49 13.49 9.0 13.49 13.49 9.0 11.99 11.99 8.0 13.49 13.49 8.2 (c) VAT 6.72 6.72 4.5 6.05 6.05 4.0 7.75 7.75 5.2 6.68 6.68 4.1 (d) Other indirect 11.73 11.73 7.8 13.84 13.84 9.2 17.26 17.26 11.5 13.91 13.91 8.5 (e) (a) plus (b) plus (c) plus (d) 64.17 64.17 42.8 58.40 58.40 39.0 49.30 49.30 32.9 59.10 59.10 36.1 (f) Domestic rates 5.55 5.55 3.7 5.57 5.57 3.7 6.36 6.36 4.2 5.58 5.58 3.4 (g) (e) plus (f) 69.72 69.72 46.5 63.97 63.97 42.7 55.66 55.66 37.1 64.68 64.68 39.5 1986–87 (a) Income tax 33.48 32.35 20.9 26.12 25.23 16.3 13.10 12.65 8.2 26.12 25.23 15.0 (b) NIC 14.43 13.94 9.0 14.43 13.94 9.0 13.15 12.70 8.2 14.43 13.94 8.3 (c) VAT 7.23 6.99 4.5 6.48 6.26 4.0 8.21 7.93 5.1 7.09 6.85 4.1 (d) Other indirect 12.65 12.22 7 9 14.91 14.41 9.3 18.50 17.88 11.5 14.92 14.42 8.6 (e) (a) plus (b) plus (c) plus (d) 67.79 65.50 42.3 61.94 59.85 33.6 52.96 51.17 33.0 62.56 60.44 35.9 (f) Domestic rates 6.31 6.10 3.9 6.32 6.10 3.9 7.21 6.96 4.5 6.30 6.09 3.6 (g) (e) plus (f) 74.10 71.59 46.2 68.26 65.95 42.6 60.17 58.14 37.5 68.86 66.53 39.5 530W531W
100 per cent. of average earnings Single Married couple no children Married both working Married couple with two children £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income 1984–85 (a) Income tax 43.93 46.52 23.7 37.30 39.50 20.2 25.73 27.25 13.9 37.30 39.50 18.8 (b) NIC 16.65 17.63 9.0 16.65 17.63 9.0 16.65 17.63 9.0 16.65 17.63 8.4 (c) VAT 8.45 8.95 4.6 7.96 8.43 4.3 9.46 10.02 5.1 8.54 9.05 4.3 (d) Other indirect 14.34 15.19 7.8 15.67 16.60 8.5 18.93 20.05 10.2 15.68 16.60 7.9 (e) (a) plus (b) plus (c) plus (d) 83.37 88.28 45.1 77.58 82.15 41.9 70.77 74.94 38.3 78.17 82.78 39.4 (f) Domestic rates 6.18 6.54 3.3 5.90 6.24 3.2 6.38 6.76 3.5 6.08 6.44 3.1 (g) (e) plus (f) 89.55 94.83 48.4 83.48 88.40 45.1 77.15 81.70 41.7 84.25 89.22 42.5 1985–86 (a) Income tax 47.22 47.22 23.6 40.01 40.01 20.0 27.29 27.29 13.7 40.01 40.01 18.7 (b) NIC 17.98 17.98 9.0 17.98 17.98 9.0 17.18 17.18 8.6 17.98 17.98 8.4 (c) VAT 9.41 9.41 4.7 8.86 8.86 4.4 10.62 10.62 5.3 9.46 9.46 4.4 (d) Other indirect 15.07 15.07 7.5 16.49 16.49 8.3 20.09 20.09 10.1 16.46 16.46 7.7 (e) (a) plus (b) plus (c) plus (d) 89.68 89.68 44.9 83.34 83.34 41.7 75.18 75.18 37.6 83.91 83.91 39.3 (f) Domestic rates 6.60 6.60 3.3 6.31 6.31 3.2 6.85 6.85 3.4 6.49 6.49 3.0 (g) (e) plus (f) 96.28 96.28 48.2 89.65 89.65 44.9 82.03 82.03 41.1 90.40 90.40 42.3 1986–87 (a) Income tax 48.98 47.32 22.9 41.62 40.21 19.5 28.60 27.63 13.4 41.62 40.21 18.3 (b) NIC 19.24 18.59 9.0 19.24 18.59 9.0 17.53 16.94 8.2 19.24 18.59 8.4 (c) VAT 10.15 9.81 4.7 9.53 9.20 4.5 11.44 11.05 5.3 10.10 9.76 4.4 (d) Other indirect 16.29 15.74 7.6 17.83 17.22 8.3 21.71 20.98 10.2 17.72 17.12 7.8
Single Married couple no children Married both working Married couple with two children £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income (e) (a) plus (b) plus (c) plus (d) 94.66 91.46 44.3 88.22 85.24 41.3 79.28 76.60 37.1 88.68 85.68 38.9 (f) Domestic rates 7.51 7.26 3.5 7.16 6.92 3.4 7.79 7.52 3.6 7.34 7.09 3.2 (g) (e) plus (f) 102.17 98.71 47.8 95.38 92.15 44.6 87.07 84.13 40.7 96.02 92.77 42.1
150 per cent. of average earnings Single Married couple no children Married both working Married couple with two children £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income 1984–85 (a) Income tax 71.68 75.91 25.8 65.05 68.88 23.4 53.48 56.63 19.3 65.05 68.88 22.4 (b) NIC 22.50 23.83 8.1 22.50 23.83 8.1 24.98 26.45 9.0 22.50 23.83 7.7 (c) VAT 13.50 14.30 4.9 13.23 14.01 4.8 14.74 15.61 5.3 13.75 14.56 4.7 (d) Other indirect 20.99 22.22 7.6 20.94 2.17 7.5 24.48 25.92 8.8 20.73 21.95 7.1 (e) (a) plus (b) plus (c) plus (d) 128.67 136.25 46.4 121.72 128.89 43.9 117.68 124.62 42.4 122.03 129.22 42.0 (f) Domestic rates 8.23 8.72 3.0 7.35 7.78 2.6 7.33 7.76 2.6 7.87 8.33 2.7 (g) (e) plus (f) 136.90 144.97 49.3 129.07 136.68 46.5 125.01 132.38 45.0 129.90 137.56 44.7 1985–86 (a) Income tax 77.19 77.19 25.8 69.98 69.98 23.3 57.26 57.26 19.1 69.98 69.98 22.3 (b) NIC 23.85 23.85 8.0 23.85 23.85 8.0 26.97 26.97 9.0 23.85 23.85 7.6 (c) VAT 15.07 15.07 5.0 14.76 14.76 4.9 16.43 16.43 5.5 15.30 15.30 4.9 (d) Other indirect 22.10 22.10 7.4 22.09 22.09 7.4 25.81 25.81 8.6 21.83 21.83 7.0 (e) (a) plus (b) plus (c) plus (d) 138.21 138.21 46.1 130.68 130.68 43.6 126.47 126.47 42.2 130.96 130.96 41.8 (f) Domestic rates 8.81 8.81 2.9 7.87 7.87 2.6 7.84 7.84 2.6 8.40 8.40 2.7 (g) (e) plus (f) 147.02 147.02 49.1 138.55 138.55 46.2 134.31 134.31 44.8 139.36 139.36 44.5 1986–87 (a) Income tax 79.98 77.28 24.9 72.62 70.16 22.6 59.60 57.58 18.6 72.62 70.16 21.7 (b) NIC 25.65 24.78 8.0 25.65 24.78 8.0 28.86 27.89 9.0 25.65 24.78 7.7 (c) VAT 16.28 15.73 5.1 15.91 15.37 5.0 17.65 17.05 5.5 16.41 15.86 4.9 (d) Other indirect 23.92 23.11 7.5 23.94 23.13 7.5 27.89 26.95 8.7 23.57 22.77 7.0 (e) (a) plus (b) plus (c) plus (d) 145.83 140.90 45.5 138.12 133.45 43.1 134.00 129.47 41.8 138.25 133.57 41.3 (f) Domestic rates '10.04 9.70 3.1 8.94 8.64 2.8 8.90 8.60 2.8 9.53 9.21 2.8 (g) (e) plus (f) 155.87 150.60 48.6 147.06 142.09 45.9 142.90 138.07 44.6 147.78 142.78 44.1
200 per cent. of average earnings Single Married couple no children Married both working Married couple with two children £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income 1984–85 (a) Income tax 102.96 109.03 27.8 94.12 99.66 25.4 81.23 86.02 22.0 94.12 99.66 24.6 (b) NIC 22.50 23.83 6.1 22.50 23.83 6.1 33.30 35.26 9.0 22.50 23.83 5.9 (c) (a) plus (b) 125.46 132.86 33.9 116.62 123.49 31.5 114.53 121.28 31.0 116.62 123.49 30.4 1985–86 (a) Income tax 111.72 111.72 28.0 102.11 102.11 25.6 87.23 87.23 21.8 102.11 102.11 24.7 (b) NIC 23.85 23.85 6.0 23.85 23.85 6.0 35.96 35.96 9.0 23.85 23.85 5.8 (c) (a) plus (b) 135.57 135.57 33.9 125.96 125.96 31.5 123.19 123.19 30.8 125.96 125.96 30.5 1986–87 (a) Income tax 116.69 112.75 27.3 106.54 102.94 24.9 90.60 87.54 21.2 106.54 102.94 24.1 (b) NIC 25.6 24.78 6.0 25.65 24.78 6.0 38.48 37.18 9.0 25.65 24.78 5.8 (c) (a) plus (b) 142.34 137.53 33.3 132.19 127.72 30.9 129.08 124.72 30.2 132.19 127.72 29.9 532W533W
500 per cent. of average earnings Single Married couple no children Married both working Married couple with two children £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income 1984–85 (a) Income tax 396.48 419.85 42.9 383.21 405.80 41.4 291.86 309.06 31.6 383.21 405.80 40.8 (b) NIC 22.50 23.83 2.4 22.50 23.83 2.4 45.00 47.65 4.9 22.50 23.83 2.4 (c) (a) plus (b) 418.98 443.67 45.3 405.71 429.62 43.9 336.86 356.71 36.4 405.71 429.63 43.2 1985–86 (a) Income tax 431.17 431.17 43.2 416.75 416.75 41.7 317.15 317.15 31.7 416.75 416.75 41.1 (b) NIC 23.85 23.85 2.4 23.85 23.85 2.4 47.70 47.70 4.8 23.85 23.85 2.4 (c) (a) plus (b) 455.02 455.02 45.5 440.60 440.60 44.1 364.85 364.85 36.5 440.60 440.60 43.5
Single Married couple no children Married both working Married couple with two children £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income 1986–87 (a) Income tax 462.59 446.95 43.3 447.36 432.24 41.8 334.71 323.39 31.3 447.36 432.24 41.3 (b) NIC 25.65 24.78 2.4 25.65 24.78 2.4 51.30 49.57 4.8 25.65 24.78 2.4 (c) (a) plus (b) 488.24 471.74 45.7 473.01 457.02 44.2 386.01 372.96 36.1 473.01 457.02 43.7
700 per cent. of average earnings Single Married couple no children Married both working Married couple with two children £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income 1984–85 (a) Income tax 618.48 654.93 47.8 605.21 640.88 46.7 478.08 506.25 36.9 605.21 640.88 46.3 (b) NIC 22.50 23.83 1.7 22.50 23.83 1.7 45.00 47.65 3.5 22.50 23.83 1.7 (c) (a) plus (b) 640.98 678.76 49.5 627.71 664.71 48.5 523.08 553.90 40.4 627.71 664.71 48.0 1985–86 (a) Income tax 670.93 670.93 48.0 656.51 656.51 46.9 520.71 520.71 37.2 656.51 656.51 46.5 (b) NIC 23.85 23.85 1.7 23.85 23.85 1.7 47.70 47.70 3.4 23.85 23.85 1.7 (c) (a) plus (b) 694.78 694.78 49.7 680.36 680.36 48.6 568.41 568.41 40.6 680.36 680.36 48.2 1986–87 (a) Income tax 719.15 694.84 48.1 703.92 680.12 47.0 556.21 537.79 37.2 703.92 680.12 46.6 (b) NIC 25.65 24.78 1.7 25.65 24.78 1.7 51.30 49.57 3.4 25.65 24.78 1.7 (c) (a) plus (b) 744.80 719.62 49.8 729.57 704.91 48.7 607.91 587.35 40.6 729.57 704.90 48.3
1,000 per cent. of average earnings Single Married couple no children Married both working Married couple with two children £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income £ per week £ per week 1985–86 prices Per cent. of gross income 1984–85 (a) Income tax 951.48 1,007.56 51.4 938.21 993.50 50.7 794.52 841.35 42.9 938.21 993.50 50.4 (b) NIC 22.50 23.83 1.2 22.50 23.83 1.2 45.00 47.65 2.4 22.50 23.83 1.2 (c) (a) plus (b) 973.98 1,031.38 52.6 960.71 1,017.33 51.9 839.52 889.00 45.4 960.71 1,017.33 51.6 1985–86 (a) Income tax 1,030.57 1,030.57 51.6 1,016.15 1,016.15 50.9 863.15 863.15 43.2 1,016.15 1,016.15 150.5 (b) NIC 23.85 23.85 1.2 23.85 23.85 1.2 47.70 47.70 2.4 23.85 23.85 1.2 (c) (a) plus (b) 1,054.42 1,054.42 52.8 1,040.00 1,040.00 52.1 910.85 910.85 45.6 1,040.00 1,040.00 51.7 1986–87 (a) Income tax 1,103.99 1,066.67 51.6 1,088.76 1,051.95 50.9 925.18 893.90 43.3 1,088.76 1,051.95 50.6 (b) NIC 25.65 24.78 1.2 25.65 24.78 1.2 51.30 49.57 2.4 25.65 24.78 1.2 (c) (a) plus (b) 1,129.64 1,091.45 52.8 1,114.41 1,076.73 52.1 976.48 943.47 45.7 1114.41 1,076.73 51.8 Notes to Tables
Income tax payments are calculated on the assumption that households have no other tax relief apart from the standard allowances. Earners, including working wives, are assumed to pay Class 1 NI contributions at the contracted-in rate. The figures for NI contributions are financial year averages.
2. Average earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. The levels of average earnings in each year are given below. The figures for 1985–86 and 1986–87 are illustrative and assume growth of 8 and 7 per cent. respectively.
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£ per week 1984–85 185.00 1985–86 * 199.80 1986–87 *213.80 * assumption
3. The married couple with both working is assumed to have joint earnings of the various multiples of average earnings. In calculating disposable income it is assumed that the joint earnings are split between husband and wife in the ratio 60:40.
4. For the married couple with two children, the percentage column expresses taxes etc. as percentages of gross earnings plus child benefit. For this purpose, financial year averages are used for child benefit.
5. The estimates of indirect taxes are based on the illustrative assumption that 10 per cent. of disposable income is saved. They are derived from the 1984 family expenditure survey. Estimates cannot reliably be made outside the income range for which figures are shown. There are also quite wide variations in spending patterns between households with similar incomes and compositions and, because of sampling variation, there can be substantial differences between the estimates obtained from different year's family expenditure surveys.