National Insurance (Hansard, 9 December 1991)

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer for each Budget since May 1979 if he will list each of the changes to national insurance contributions and income tax which raised more than £5 million in revenue, in 1991–92 prices, giving for each change the full-year yield in 1991–92 prices.

§ Mr. Maude
Information in terms of money of the day is available in the "Financial Statement and Budget Report" and the autumn statement for the years in question.

§ Mr. Tom Clarke
To ask the Chancellor of the Exchequer how many(a) basic rate and (b) higher rate taxpayers would be affected in 1991–92 by extending national insurance contributions to all employee taxable benefits in kind, for employees who earn over £8,500; and if he will give the average annual cost per individual with gross incomes between (a) £10,000 and £20,000, (b) £20,000 and £30,000, (c) £30,000 and £40,000, (d) £40.000 and £50,000 and (e) over £50,000, respectively.

§ Mr. Maude
Estimates of those who would be subject to such a charge for 1991–92 are as follows:

Basic Rate Taxpayers

Total Income Numbers (000s) Average cost¹ £

below £10,000 200 120

£10,000–£19,999 1,300 120

£20,000–£29,999 500 200

£30,000 and over — —

Total 2,000 140

¹ Assuming the contracted-in contribution rate of 9 per cent.

In addition, some 100,000 higher rate taxpayers would face an additional charge averaging £570.
Most higher-rate taxpayers and some basic rate taxpayers have earnings above the upper earnings limit for employee national insurance contributions and therefore would not be subject to an additional charge on their benefits.

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer what would be the revenue yield in(a) the first year, (b) a full year, assuming this is introduced at the beginning of 1991–92, (c) the first year and (d) a full year, assuming this is introduced at the beginning of 1992–93, of extending national insurance contributions to all employee taxable benefits in kind, for employees in (1) Great Britain and (2) Northern Ireland who earn over £8,500, distinguishing between employee and employer contributions and listing the revenue from each benefit.

§ Mr. Maude
[holding answer 5 December 1991]: The additional revenue for the United Kingdom in a full year at 1991–92 levels is shown in the table, which gives the available analysis by type of benefit. The 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 taxable benefits have earnings above the upper earnings limit. The estimates are calculated using the taxable value of the benefits. The yield in the first year would depend on 302W the administrative arrangements made to collect the new charge. The yield for 1992–93 would depend on the level of employer-provided benefits in that year. Separate estimates are not available for Great Britain and Northern Ireland.

Revenue yield for 1991–92

Type of benefit From employees £ million From employers £ million

Car 200 ¹0

Car fuel 20 ¹0

Private medical insurance 10 40

Home telephone — 10

Beneficial loans — 20

Other benefits 110 230

Total 340 300

¹ These items are already subject to employer contributions.

	Basic Rate Taxpayers
Total Income	Numbers (000s)	Average cost¹ £
below £10,000	200	120
£10,000–£19,999	1,300	120
£20,000–£29,999	500	200
£30,000 and over	—	—
Total	2,000	140
¹ Assuming the contracted-in contribution rate of 9 per cent.

Revenue yield for 1991–92
Type of benefit	From employees £ million	From employers £ million
Car	200	¹0
Car fuel	20	¹0
Private medical insurance	10	40
Home telephone	—	10
Beneficial loans	—	20
Other benefits	110	230
Total	340	300
¹ These items are already subject to employer contributions.