Taxes and Benefits

HC Deb 05 July 1990 vol 175 cc699-707W

Mr. Nicholas Brown

To ask the Chancellor of the Exchequer if he will publish in theOfficial Report up-to-date figures on the same basis as those provided to the hon. Member for Newcastle upon Tyne, East, in his answer of 8 January, Official Report, columns 559–64, revising his figures to include an estimate of the effects of the 1990 Budget statement and the introduction of the community charge.

Income tax, NICS and indirect tax payments at multiples of average earnings, 1988–89
	Multiples of average earnings
	0.50	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
VAT	—	9.52	12.82	19.98	—	—	—	—	—	—	—
Other indirect	—	15.15	18.96	27.22	—	—	—	—	—	—	—
Total	31.04	77.50	106.40	158.24	156.78	259.30	361.82	464.34	669.38	976.94	2,002.14
Domestic rates	—	7.68	9.35	12.99	—	—	—	—	—	—	—
Percentage of earnings
Income Tax	15.2	18.5	20.1	21.7	25.2	30.2	32.6	34.1	35.8	37.0	38.5
NICS	9.0	9.0	9.0	7.1	5.4	3.6	2.7	2.1	1.5	1.1	0.5
VAT	—	5.0	5.0	5.2	—	—	—	—	—	—	—
Other indirect	—	7.9	7.4	7.1	—	—	—	—	—	—	—
Total	24.2	40.4	41.5	41.2	30.6	33.7	35.3	36.2	37.3	38.1	39.1
Domestic rates	—	4.0	3.6	3.4	—	—	—	—	—	—	—
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
VAT	—	8.73	12.32	20.12	—	—	—	—	—	—	—
Other indirect	—	16.82	20.63	28.89	—	—	—	—	—	—	—
Total	23.88	71.22	100.41	152.89	145.32	247.84	350.36	452.88	657.92	965.48	1,990.68
Domestic rates	—	7.52	8.73	11.37	—	—	—	—	—	—	—

Mr. Lilley

[holding answer 5 June 1990]: Figures for 1978–79 to 1987–88 were placed in the library of the House last year (as noted in the Official Report, 13 April 1989, column 624). The latest estimates for 1988–89, 1989–90 and 1990–91 are given in the tables. I regret that it is not yet possible to produce satisfactory estimates of the effects of the introduction of the community charge and associated arrangements for transitional relief.

Notes to Tables

1. (1) Income tax payments are calculated on the assumption that the households receive no tax reliefs other than the standard allowances and only have income from employment. All earners, including wives, are assumed to pay class 1 NI contributions at the contracted in rate. The figures for NI contributions are financial year averages.
2. (2) From 1990–91 husbands and wives will be taxed independently. Previously the tax liability of couples depended on their joint income. To permit comparisons with earlier years the table therefore shows income tax and national insurance contributions paid by a married couple in 1990–91 as a proportion of their joint income, assuming, as in the earlier years, that where both partners are earners, the husband and wife share the relevant multiple of earnings in the ratio 60:40.
3. (3) In order to provide comparability with 1978–79, when support for children was given partly through child tax allowances, child benefit is treated as a negative income tax for the married couple with two children.
4. (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, £280.00 per week in 1989–90, and estimated to be £303.80 per week in 1990–91, using the Government Actuary Department's assumption of 81 per cent. growth over 1989–90 as published in the 1989 Autumn Statement.
5. (5) The estimate of indirect taxes are derived from the 1985 family expenditure survey, and are based on the illustrative assumption that 10 per cent. of disposable income is saved. There are wide variations in spending patterns between households with similar incomes and composition, and estimated payments of VAT, other indirect taxes and domestic rates are therefore approximate, even within the income range for which figures are shown. Outside this range the margin of error is even higher and reliable estimates cannot be made. Because of sampling variation, there can be substantial differences between the estimates obtained from family expenditure surveys for different years.

	Multiples of average earnings
	0.50	0.75	1	1.5	2	3	4	5	7	10	20
Percentage of earnings
Income Tax	9.6	14.8	17.3	19.9	23.0	28.7	31.5	33.2	35.1	36.6	38.3
NICS	9.0	9.0	9.0	7.1	5.4	3.6	2.7	2.1	1.5	1.1	0.5
VAT	—	4.5	4.8	5.2	—	—	—	—	—	—	—
Other indirect	—	8.8	8.1	7.5	—	—	—	—	—	—	—
Total	18.6	37.1	39.2	39.7	28.3	32.2	34.2	35.3	36.7	37.7	38.8
Domestic rates	—	3.9	3.4	3.0	—	—	—	—	—	—	—
Married, both working Amounts, £ per week
Income Tax	0.00	15.84	31.86	63.90	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
VAT	—	9.87	13.82	21.42	—	—	—	—	—	—	—
Other indirect	—	19.54	22.99	29.65	—	—	—	—	—	—	—
Total	7.95	61.01	89.69	149.57	143.73	228.09	315.23	416.08	621.12	928.68	1,953.88
Domestic rates	—	9.29	9.92	11.14	—	—	—	—	—	—	—
Percentage of earnings
Income Tax	0.0	8.2	12.4	16.6	19.1	22.5	25.4	28.2	31.6	34.1	37.0
NICS	6.2	8.2	8.2	9.0	9.0	7.1	5.4	4.3	3.1	2.1	1.1
VAT	—	5.1	5.4	5.6	—	—	—	—	—	—	—
Other indirect	—	10.2	9.0	7.7	—	—	—	—	—	—	—
Total	6.2	31.7	35.0	38.9	28.0	29.7	30.7	32.5	34.6	36.2	38.1
Domestic rates	—	4.8	3.9	2.9	—	—	—	—	—	—	—
Married, 2 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	17.30	23.07	27.45	27.45	27.45	27.45	27.45	27.45	27.45	27.45
VAT	—	8.69	12.76	21.59	—	—	—	—	—	—	—
Other indirect	—	16.67	19.71	26.33	—	—	—	—	—	—	—
Total	9.38	56.53	85.43	137.30	130.82	233.34	335.86	437.38	643.42	950.98	1,976.18
Domestic rates	—	7.42	8.85	11.96	—	—	—	—	—	—	—
Percentage of earnings
Income Tax	-1.7	7.2	11.7	16.1	20.2	26.8	30.1	32.0	34.3	36.0	38.0
NICS	9.0	9.0	9.0	7.1	5.4	3.6	2.7	2.1	1.5	1.1	0.5
VAT	—	4.5	5.0	5.6	—	—	—	—	—	—	—
Other indirect	—	8.7	7.7	6.8	—	—	—	—	—	—	—
Total	7.3	29.4	33.4	35.6	25.5	30.3	32.8	34.1	35.9	37.1	38.6
Domestic rates	—	3.9	3.5	3.1	—	—	—	—	—	—	—

Income tax, NICS and indirect tax payments at multiples of average earnings, 1989–90
	Multiples of average earnings
	0.5	0.75	1	1.5	2	3	4	5	7	10	20
Single Amounts, £ per week
Income Tax	21.61	39.11	56.61	91.61	142.87	254.87	366.87	478.87	702.87	1,038.87	2,158.87
NICS	11.10	17.40	23.70	27.74	27.74	27.74	27.74	27.74	27.74	27.74	27.74
VAT	—	10.48	14.08	21.95	—	—	—	—	—	—	—
Other indirect	—	15.56	19.45	27.95	—	—	—	—	—	—	—
Total	32.71	82.55	113.84	169.25	170.61	282.61	394.61	506.61	730.61	1,066.61	2,186.61
Domestic rates	—	8.49	10.33	14.36	—	—	—	—	—	—	—
Amounts 1988–89 prices
Income Tax	20.05	36.28	52.51	84.98	132.53	236.43	340.32	444.22	652.01	963.70	2,002.66
NICS	10.30	16.14	21.99	25.73	25.73	25.73	25.73	25.73	25.73	25.73	25.73
VAT	—	9.72	13.06	20.36	—	—	—	—	—	—	—
Other indirect	—	14.43	18.04	25.93	—	—	—	—	—	—	—
Total	30.34	76.58	105.60	157.00	158.27	262.16	366.06	469.95	677.75	989.43	2,028.40
Domestic rates	—	7.88	9.58	13.32	—	—	—	—	—	—	—
Percentage of earnings
Income Tax	15.4	18.6	20.2	21.8	25.5	30.3	32.8	34.2	35.9	37.1	38.6
NICS	7.9	8.3	8.5	6.6	5.0	3.3	2.5	2.0	1.4	1.0	0.5
VAT	—	5.0	5.0	5.2	—	—	—	—	—	—	—
Other indirect	—	7.4	6.9	6.7	—	—	—	—	—	—	—
Total	23.4	39.3	40.7	40.3	30.5	33.6	35.2	36.2	37.3	38.1	39.0
Domestic rates	—	4.0	3.7	3.4	—	—	—	—	—	—	—
Married, no children Amounts, £ per week
Income Tax	13.97	31.47	48.97	83.97	130.63	242.63	354.63	466.63	690.63	1,026.63	2,146.63

	Multiples of average earnings
	0.5	0.75	1	1.5	2	3	4	5	7	10	20
NICS	11.10	17.40	23.70	27.74	27.74	27.74	27.74	27.74	27.74	27.74	27.74
VAT	—	9.60	13.52	22.08	—	—	—	—	—	—	—
Other indirect	—	17.26	21.17	29.70	—	—	—	—	—	—	—
Total	25.07	75.73	107.36	163.49	158.37	270.37	382.37	494.37	718.37	1,054.37	2,174.37
Domestic rates	—	8.30	9.64	12.56	—	—	—	—	—	—	—
Amounts 1988–89 prices
Income Tax	12.96	29.19	45.43	77.89	121.18	225.07	328.97	432.87	640.66	952.35	1,991.31
NICS	10.30	16.14	21.99	25.73	25.73	25.73	25.73	25.73	25.73	25.73	25.73
VAT	—	8.91	12.54	20.48	—	—	—	—	—	—	—
Other indirect	—	16.01	19.64	27.55	—	—	—	—	—	—	—
Total	23.26	70.25	99.59	151.66	146.91	250.81	354.70	458.60	666.39	978.08	2,017.04
Domestic rates	—	7.70	8.94	11.65	—	—	—	—	—	—	—
Percentage of earnings
Income Tax	10.0	15.0	17.5	20.0	23.3	28.9	31.7	33.3	35.2	36.7	38.3
NICS	7.9	8.3	8.5	6.6	5.0	3.3	2.5	2.0	1.4	1.0	0.5
VAT	—	4.6	4.8	5.3	—	—	—	—	—	—	—
Other indirect	—	8.2	7.6	7.1	—	—	—	—	—	—	—
Total	17.9	36.1	38.3	38.9	28.3	32.2	34.1	35.3	36.7	37.7	38.8
Domestic rates	—	4.0	3.4	3.0	—	—	—	—	—	—	—
Married, both working Amounts, £ per week
Income Tax	0.58	18.08	35.58	70.58	109.21	191.08	286.28	397.73	621.73	957.73	2,077.73
NICS	9.59	15.89	22.19	34.79	46.40	55.49	55.49	55.49	55.49	55.49	55.49
VAT	—	10.80	15.06	23.56	—	—	—	—	—	—	—
Other indirect	—	19.94	23.42	30.38	—	—	—	—	—	—	—
Total	10.17	64.71	96.25	159.31	155.61	246.57	341.77	453.22	677.22	1,013.22	2,133.22
Domestic rates	—	10.24	10.92	12.30	—	—	—	—	—	—	—
Amounts 1988/89 prices
Income tax	0.54	16.77	33.01	65.47	101.31	177.25	265.57	368.95	576.74	888.43	1,927.39
NICS	8.90	14.74	20.58	32.27	43.04	51.47	51.47	51.47	51.47	51.47	51.47
VAT	—	10.02	13.97	21.86	—	—	—	—	—	—	—
Other indirect	—	18.50	21.73	28.18	—	—	—	—	—	—	—
Total	9.43	60.03	89.29	147.78	144.35	228.73	317.04	420.43	628.22	939.91	1,978.87
Domestic rates	—	9.50	10.13	11.41	—	—	—	—	—	—	—
Percentage of earnings
Income Tax	0.4	8.6	12.7	16.8	19.5	22.7	25.6	28.4	31.7	34.2	37.1
NICS	6.9	7.6	7.9	8.3	8.3	6.6	5.0	4.0	2.8	2.0	1.0
VAT	—	5.1	5.4	5.6	—	—	—	—	—	—	—
Other indirect	—	9.5	8.4	7.2	—	—	—	—	—	—	—
Total	7.3	30.8	34.4	37.9	27.8	29.4	30.5	32.4	34.6	36.2	38.1
Domestic rates	—	4.9	3.9	2.9	—	—	—	—	—	—	—
Married, 2 children Amounts, £ per week
Income Tax	-0.53	16.97	34.47	69.47	116.13	228.13	340.13	452.13	676.13	1,012.13	2,132.13
NICS	11.10	17.40	23.70	27.74	27.74	27.74	27.74	27.74	27.74	27.74	27.74
VAT	—	9.43	13.87	23.57	—	—	—	—	—	—	—
Other indirect	—	16.95	20.08	26.91	—	—	—	—	—	—	—
Total	10.57	60.75	92.12	147.69	143.87	255.87	367.87	479.87	703.87	1,039.87	2,159.87
Domestic rates	—	8.15	9.72	13.16	—	—	—	—	—	—	—
Amounts 1988–89 prices
Income Tax	-0.49	15.74	31.98	64.44	107.73	211.62	315.52	419.42	627.21	938.90	1,977.86
NICS	10.30	16.14	21.99	25.73	25.73	25.73	25.73	25.73	25.73	25.73	25.73
VAT	—	8.75	12.87	21.86	—	—	—	—	—	—	—
Other indirect	—	15.72	18.63	24.96	—	—	—	—	—	—	—
Total	9.81	56.35	85.45	137.00	133.46	237.36	341.25	445.15	652.94	964.63	2,003.59
Domestic rates	—	7.56	9.02	12.21	—	—	—	—	—	—	—
Percentage of earnings
Income Tax	-0.4	8.1	12.3	16.5	20.7	27.2	30.4	32.3	34.5	36.1	38.1
NICS	7.9	8.3	8.5	6.6	5.0	3.3	2.5	2.0	1.4	1.0	0.5
VAT	—	4.5	5.0	5.6	—	—	—	—	—	—	—
Other indirect	—	8.1	7.2	6.4	—	—	—	—	—	—	—
Total	7.6	28.9	32.9	35.2	25.7	30.5	32.8	34.3	35.9	37.1	38.6
Domestic rates	—	3.9	3.5	3.1	—	—	—	—	—	—	—

Income tax, NICS and indirect tax payments at multiples of average earnings, 1990–91
	Multiples of average earnings
	0.5	0.75	1	1.5	2	3	4	5	7	10	20
Single Amounts, £ per week
Income Tax	23.53	42.52	61.50	99.48	160.21	281.73	403.25	524.77	767.81	1,132.37	2,347.57
NICS	10.45	17.29	24.12	28.28	28.28	28.28	28.28	28.28	28.28	28.28	28.28
VAT	—	11.49	15.39	23.93	—	—	—	—	—	—	—
Other indirect	—	17.04	21.28	30.54	—	—	—	—	—	—	—
Total	33.98	88.34	122.29	182.23	188.49	310.01	431.53	553.05	796.09	1,160.65	2,375.85
Amounts 1988–89 prices
Income Tax	20.41	36.88	53.34	86.28	138.95	244.35	349.74	455.13	665.92	982.11	2,036.05
NICS	9.06	15.00	20.92	24.53	24.53	24.53	24.53	24.53	24.53	24.53	24.53
VAT	—	9.97	13.35	20.75	—	—	—	—	—	—	—
Other indirect	—	14.78	18.46	26.49	—	—	—	—	—	—	—
Total	29.47	76.62	106.06	158.05	163.48	268.87	374.27	479.66	690.45	1,006.63	2,060.58
Percentage of Earnings
Income Tax	15.5	18.7	20.2	21.8	26.4	30.9	33.2	34.5	36.1	37.3	38.6
NICS	6.9	7.6	7.9	6.2	4.7	3.1	2.3	1.9	1.3	0.9	0.5
VAT	—	5.0	5.1	5.3	—	—	—	—	—	—	—
Other indirect	—	7.5	7.0	6.7	—	—	—	—	—	—	—
Total	22.4	38.8	40.3	40.0	31.0	34.0	35.5	36.4	37.4	38.2	39.1
Married, no children Amounts, £ per week
Income Tax	15.26	34.25	53.23	91.21	146.98	268.50	390.02	511.54	754.58	1,119.14	2,334.34
NICS	10.45	17.29	24.12	28.28	28.28	28.28	28.28	28.28	28.28	28.28	28.28
VAT	—	10.60	14.84	24.14	—	—	—	—	—	—	—
Other indirect	—	18.89	23.14	32.42	—	—	—	—	—	—	—
Total	25.71	81.03	115.33	176.05	175.26	296.78	418.30	539.82	782.86	1,147.42	2,362.62
Amounts 1988–89 prices
Income Tax	13.24	29.71	46.17	79.11	127.48	232.87	338.27	443.66	654.45	970.63	2,024.58
NICS	9.06	15.00	20.92	24.53	24.53	24.53	24.53	24.53	24.53	24.53	24.53
VAT	—	9.19	12.87	20.94	—	—	—	—	—	—	—
Other indirect	—	16.38	20.07	28.12	—	—	—	—	—	—	—
Total	22.30	70.28	100.03	152.69	152.00	257.40	362.79	468.19	678.98	995.16	2,049.11
Percentage of earnings
Income Tax	10.0	15.0	17.5	20.0	24.2	29.5	32.1	33.7	35.5	36.8	38.4
NICS	6.9	7.6	7.9	6.2	4.7	3.1	2.3	1.9	1.3	0.9	0.5
VAT	—	4.7	4.9	5.3	—	—	—	—	—	—	—
Other indirect	—	8.3	7.6	7.1	—	—	—	—	—	—	—
Total	16.9	35.6	38.0	38.6	28.8	32.6	34.4	35.5	36.8	37.8	38.9
Married, both working Amounts, £ per week
Income Tax	0.81	19.80	38.79	76.76	114.74	199.37	307.20	428.72	671.76	1,036.32	2,251.52
NICS	7.23	14.07	20.90	34.57	46.93	56.56	56.56	56.56	56.56	56.56	56.56
VAT	—	12.08	16.68	25.89	—	—	—	—	—	—	—
Other indirect	—	21.82	25.61	33.18	—	—	—	—	—	—	—
Total	8.04	67.77	101.98	170.40	161.67	255.93	363.76	485.28	728.32	1,092.88	2,308.08
Amounts 1988–89 prices
Income Tax	0.70	17.17	33.64	66.58	99.51	172.92	266.43	371.83	582.62	898.80	1,952.75
NICS	6.27	12.20	18.13	29.98	40.70	49.05	49.05	49.05	49.05	49.05	49.05
VAT	—	10.48	14.47	22.45	—	—	—	—	—	—	—
Other indirect	—	18.92	22.21	28.78	—	—	—	—	—	—	—
Total	6.97	58.78	88.45	147.79	140.21	221.97	315.49	420.88	631.67	947.85	2,001.80
Percentage of Earnings
Income Tax	0.5	8.7	12.8	16.8	18.9	21.9	25.3	28.2	31.6	34.1	37.1
NICS	4.8	6.2	6.9	7.6	7.7	6.2	4.7	3.7	2.7	1.9	0.9
VAT	—	5.3	5.5	5.7	—	—	—	—	—	—	—
Other indirect	—	9.6	8.4	7.3	—	—	—	—	—	—	—
Total	5.3	29.7	33.6	37.4	26.6	28.1	29.9	31.9	34.2	36.0	38.0
Married, 2 children Amounts, £ per week
Income Tax	0.76	19.75	38.73	76.71	132.48	254.00	375.52	497.04	740.08	1,104.64	2,319.84
NICS	10.45	17.29	24.12	28.28	28.28	28.28	28.28	28.28	28.28	28.28	28.28
VAT	—	10.38	15.19	25.72	—	—	—	—	—	—	—
Other indirect	—	18.41	21.80	29.23	—	—	—	—	—	—	—
Total	11.21	65.83	99.84	159.94	160.76	282.28	403.80	525.32	768.36	1,132.92	2,348.12
Amounts 1988–89 prices
Income Tax	0.66	17.13	33.59	66.53	114.90	220.29	325.69	431.08	641.87	958.06	2,012.00
NICS	9.06	15.00	20.92	24.53	24.53	24.53	24.53	24.53	24.53	24.53	24.53
VAT	—	9.00	13.17	22.31	—	—	—	—	—	—	—
Other indirect	—	15.97	18.91	25.35	—	—	—	—	—	—	—
Total Percentage of earnings	9.72	57.09	86.59	138.72	139.43	244.82	350.22	455.61	666.40	982.58	2,036.53

	Multiples of average earnings
	0.5	0.75	1	1.5	2	3	4	5	7	10	20
Income Tax	0.5	8.7	12.7	16.8	21.8	27.9	30.9	32.7	34 8	36.4	38.2
NICS	6.9	7.6	7.9	6.2	4.7	3.1	2.3	1.9	1.3	0.9	0.5
VAT	—	4.6	5.0	5.6	—	—	—	—	—	—	—
Other indirect	—	8.1	7.2	6.4	—	—	—	—	—	—	—
Total	7.4	28.9	32.9	35.1	25.5	31.0	33.2	34.6	36.1	37.3	38.6