§ Mr. Tom ClarkeTo ask the Chancellor of the Exchequer what would be the revenue(a) in the first year and (b) in a full year, assuming this is introduced at the beginning of 1991–92, and (c) in the first year and (d) in a full year, assuming this is introduced at the beginning of 251W 1992–93, from extending national insurance contributions to (1) use of credit cards and charge cards and (2) medical bills insurance, for employees who earn over £8,500, distinguishing separately employee contributions and employer contributions, estimating the total revenue yield and, in each case, the number of taxpayers who would be affected.
§ Mr. MaudeSuch a charge on private medical insurance premiums paid by employers would effect some 500,000 taxpayers and would yield £10 million in employee contributions and £40 million in employer contributions in a full year at 1991–92 levels of earnings and benefits. These estimates are based on an employee contribution rate of 9 per cent. and an employer contribution rate of 10.4 per cent. and take account of the fact that many taxpayers who receive private medical insurance from their employers have earnings above the upper earnings limit. The yield in the first year would depend on the administrative arrangements made to collect the new charge. The yield for 1992–93 would depend upon the level of employer-provided benefits in that year.
Detailed information on the extent of the use by employees of credit cards and charge cards provided by employers is not available.