Tax and Insurance (Hansard, 6 November 1989)

§ Mr. Lilley

[holding answer 2 November 1989]: Figures for 1978–79 to 1988–89 were earlier placed in the Library of the House on 13 April 1989. Revised estimates for 1988–89 and estimates for 1989–90 are set out in the tables.

431W

Multiples of Average Earnings
	0.5	0.75	1	1.5	2	3	4	5	7	10	20
NICS	10.46	16.66	22.86	27.74	27.74	27.74	27.74	27.74	27.74	27.74	27.74
Total	23.86	47.28	70.7	110.02	154.77	264.97	375.17	485.37	705.77	1,036.37	2,138.37
Amounts 1988–89 prices
Income Tax	12.64	28.89	45.13	77.62	119.84	223.80	327.76	431.73	639.65	951.54	1,991.16
NICS	9.87	15.72	21.57	26.17	26.17	26.17	26.17	26.17	26.17	26.17	26.17
Total	22.51	44.60	66.70	103.79	146.01	249.97	353.93	457.90	665.82	977.71	2,017.33
Percentage of Earnings
Income Tax (per cent.)	9.7	14.8	17.4	19.9	23.1	28.7	31.5	33.2	35.2	36.6	38.3
NICS (per cent.)	7.6	8.1	8.3	6.7	5.0	3.4	2.5	2.0	1.4	1.0	0.5
Total (per cent.)	17.3	22.9	25.7	26.6	28.1	32.1	34.0	35.2	36.6	37.6	38.8
Married, both working
Amounts, £ per week
Income Tax	0.01	17.23	34.45	68.89	105.61	186.49	280.16	388.73	609.13	939.73	2,041.73
NICS	9.39	15.59	21.79	34.18	46.08	55.49	55.49	55.49	55.49	55.49	55.49
Total	9.40	32.82	56.24	103.07	151.69	241.98	335.65	444.22	664.62	995.22	2,097.22
Amounts 1988–89 prices
Income Tax	0.01	16.25	32.50	64.99	99.63	175.93	264.30	366.73	574.65	886.54	1,926.16
NICS	8.86	14.71	20.56	32.25	43.47	52.35	52.35	52.35	52.35	52.35	52.35
Total	8.87	30.96	53.06	97.24	143.10	228.28	316.65	419.08	627.00	938.89	1,978.51
Per cent. of Earnings
Income Tax (per cent.)	0.0	8.3	12.5	16.7	19.2	22.6	25.4	28.2	31.6	34.1	37.1
NICS (per cent.)	6.8	7.5	7.9	8.3	8.4	6.7	5.0	4.0	2.9	2.0	1.0
Total (per cent.)	6.8	15.9	20.4	24.9	27.5	29.3	30.5	32.2	34.5	36.1	38.1
Married, two children
Amounts, £ per week
Income Tax	-1.1	16.12	33.34	67.78	112.53	222.73	332.93	443.13	663.53	994.13	2,096.13
NICS	10.46	16.66	22.86	27.74	27.74	27.74	27.74	27.74	27.74	27.74	27.74
							360.6
					140.2		7470.		1,021.
Total	9.36	32.78	56.20	95.52	50	250.47	87	91.27	87	2,123.87
Amounts 1988–89 prices
Income Tax	-1.04	15.21	31.45	63.94	106.16	210.12	314.08	418.05	625.97	937.86	1,977.48
NICS	9.87	15.72	21.57	26.17	26.17	26.17	26.17	26.17	26.17	26.17	26.17
Total	8.83	30.92	53.02	90.11	132.33	236.29	340.25	444.22	652.14	964.03	2,003.65
Per cent. of Earnings
Income tax (per cent.)	-0.8	7.8	12.1	16.4	20.4	26.9	30.2	32.2	34.4	36.1	38.0
NICS (per cent.)	7.6	8.1	8.3	6.7	5.0	3.4	2.5	2.0	1.4	1.0	0.5
Total (per cent.)	6.8	15.9	20.4	23.1	25.5	30.3	32.7	34.2	35.8	37.1	38.5

Income Tax and NICS payments at multiples of Average Earnings, 1988–89
Multiples of Average Earnings
	0.5	0.75	1	1.5	2	3	4	5	7	10	20
Single
Amounts, £ per week
Income Tax	19.51	35.53	51.55	83.59	129.33	231.85	334.37	436.89	641.93	949.49	1,974.69
NICS	11.53	17.30	23.07	27.45	27.45	27.45	27.45	27.45	27.45	27.45	27.45
Total	31.04	52.83	74.62	111.04	156.78	259.3	361.82	464.34	669.38	976.94	2,002.14
Per cent. of Earnings
Income Tax
per cent.	15.2	18.5	20.1	21.7	25.2	30.2	32.6	34.1	35.8	37.0	38.5
NICS per cent.	9.0	9.0	9.0	7.1	5.4	3.6	2.7	2.1	1.5	1.1	0.5
Total per cent.	24.2	27.5	29.1	28.9	30.6	33.7	35.3	36.2	37.3	38.1	39.1
Married, no children
Amounts, £ per week
Income Tax	12.35	28.37	44.39	76.43	117.87	220.39	322.91	425.43	630.47	938.03	1,963.23
NICS	11.53	17.30	23.07	27.45	27.45	27.45	27.45	27.45	27.45	27.45	27.45
Total	23.88	45.67	67.46	103.88	145.32	247.84	350.36	452.88	657.92	96.48	1,990.68
Per cent. of Earnings
Income Tax
per cent.	9.6	14.8	17.3	19.9	23.0	28.7	31.5	33.2	35.1	36.6	38.3

432W 433W

	Multiples of Average Earnings
	0.5	0.75	1	1.5	2	3	4	5	7	10	20
NICS per cent.	9.0	9.0	9.0	7.1	5.4	3.6	2.7	2.1	1.5	1.1	0.5
Total per cent.	18.6	23.8	26.3	27.0	28.3	32.2	34.2	35.3	36.7	37.7	38.8
Married, both working
Amounts, £ per week
Income Tax	0	15.84	31.86	63.9	97.83	173.19	260.33	361.18	566.22	873.78	1,898.98
NICS	7.95	15.76	21.02	34.60	45.90	54.90	54.90	54.90	54.90	54.90	54.90
Total	7.95	31.60	52.88	98.50	143.73	228.09	315.23	416.08	621.12	928.68	1,953.88
Per cent. of Earnings
Income Tax per cent.	0.0	8.2	12.4	16.6	19.1	22.5	25.4	28.2	31.6	34.1	37.0
NICS per cent.	6.2	8.2	8.2	9.0	9.0	7.1	5.4	4.3	3.1	2.1	1.1
Total per cent.	6.2	16.4	20.6	25.6	28.0	29.7	30.7	32.5	34.6	36.2	38.1
Married, two children
Amounts, £ per week
Income Tax	-2.15	13.87	29.89	61.93	103.37	205.89	308.41	409.93	615.97	923.53	1,948.73
NICS	11.53	17.3	23.07	27.45	27.45	27.45	27.45	27.45	27.45	27.45	27.45
Total	9.38	31.17	52.96	89.38	130.82	233.34	335.86	437.38	643.42	950.98	1,976.18
Per cent. of Earnings
Income Tax per cent.	-1.7	7.2	11.7	16.1	20.2	26.8	30.1	32.0	34.3	36.0	38.0
NICS per cent.	9.0	9.0	9.0	7.1	5.4	3.6	2.7	2.1	1.5	1.1	0.5
Total per cent.	7.3	16.2	20.7	23.2	25.5	30.3	32.8	34.1	35.9	37.1	38.6

Notes to Tables:

1. Income tax payments are calculated on the assumption that the tax units receive no tax reliefs other than 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. The two earner married couple is assumed to have combined earnings equal to the various multiples of average earnings. In calculating disposable income it is assumed that these earnings are split between husband and wife in the ratio 60:40.

3. For the married couple with two children, child benefit is treated as a negative income tax.

4. Average earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. These were £256.30 per week in 1988–89, and estimated to be £275.50 per week in 1989–90 using the Government Actuary Department's assumption of 7½ per cent. growth over 1988–89 as published in the GAD annual report in December 1988.

5. 1989–90 figures are converted into 1988–89 prices by assuming that the RPI is 6 per cent. higher in 1989–90 than the previous financial year. This is consistent with the forecasts published in the 1989–90 Financial Statement and Budget Report.