§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer when he will be able to provide 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 1990,Official Report, columns 558–64, revising his figures to include an estimate of the effects of the introduction of the community charge; and what estimate he has made to date of the effect on the tax burden of the introduction of the community charge.
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Income tax, NICs and indirect tax payments at multiples oj 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 23.83 42.97 62.10 100.89 162.13 284.61 407.09 529.57 774.53 1,141.97 2,366.77 NICs 10.56 17.45 24.34 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 Total income tax and NICs 34.39 60.42 86.44 129.17 190.41 312.89 435.37 557.85 802.81 1,170.25 2,395.05 VAT — 11.17 14.97 23.26 — — — — — — — Other indirect — 17.01 21.18 30.29 — — — — — — — Community Charge — 8.48 8.97 9.95 — — — — — — — Total 97.08 131.56 192.67 Percentage of Earnings Income Tax 15.6 18.7 20.3 22.0 26.5 31.0 33.2 34.6 36.1 37.3 38.6 NICs 6.9 7.6 7.9 6.2 4.6 3.1 2.3 1.8 1.3 0.9 0.5 Total income tax and NICs 22.5 26.3 28.2 28.1 31.1 34.1 35.5 36.4 37.5 38.2 39.1 VAT — 4.9 4.9 5.1 — — — — — — — Other indirect — 7.4 6.9 6.6 — — — — — — — Community Charge — 3.7 2.9 2.2 — — — — — — — Total 42.3 43.0 41.9 Married, no children Amounts, £ per week Income Tax 15.56 34.70 53.83 92.11 148.90 271.38 393.86 516.34 761.30 1128.74 2,353.54 NICs 10.56 17.45 24.34 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 Total income tax and NICs 26.12 52.15 78.17 120.39 177.18 299.66 422.14 544.62 789.58 1,157.02 2,381.82 VAT — 10.25 14.39 23.46 — — — — — — — Other indirect — 18.91 23.10 32.29 — — — — — — — Community Charge — 14.65 15.04 15.82 — — — — — — — Total 95.96 130.70 191.96 Percentage of Earnings Income Tax 10.2 15.1 17.6 20.1 24.3 29.5 32.2 33.7 35.5 36.9 38.4 NICs 6.9 7.6 7.9 6.2 4.6 3.1 2.3 1.8 1.3 0.9 0.5 Total income tax and NICs 17.1 22.7 25.5 26.2 28.9 32.6 34.5 35.6 36.8 37.8 38.9 VAT — 4.5 4.7 5.1 — — — — — — — Other indirect — 8.2 7.5 7.0 — — — — — — — Community Charge — 6.4 4.9 3.4 — — — — — — — Total 41.8 42.7 41.8 Married, both working Amounts, £ per week Income Tax 1.11 20.25 39.39 77.66 115.94 201.82 311.03 433.51 678.47 1,045.91 2,270.71 NICs 7.34 14.23 21.12 34.90 47.11 56.56 56.56 56.56 56.56 56.56 56.56 Total income tax and NICs 8.45 34.48 60.51 112.56 163.05 258.38 367.59 490.07 735.03 1,102.47 2,327.27 VAT — 11.66 16.15 25.12 — — — — — Other indirect — 21.83 25.56 33.03 — — — — — — — Community Charge — 15.01 15.13 15.36 — — — — — — — Total 82.98 117.35 186.06 Percentage of Earnings Income Tax 0.7 8.8 12.9 16.9 18.9 22.0 25.4 28.3 31.7 34.2 37.1 NICs 4.8 6.2 6.9 7.6 7.7 6.2 4.6 3.7 2.6 1.8 0.9 Total income tax and NICs 5.5 15.0 19.8 24.5 26.6 28.1 30.0 32.0 34.3 36.0 38.0
§ Mr. Maude[holding answer 9 December 1991]: Updated figures for 1990–91, including estimates of community charge payments in 1990–91, are given on a basis similar to that provided to the hon. Member in his answer of 8 January 1990, at columns 559–64. No figures of the impact of the community charge in 1991–92 can be provided until the 1991 family expenditure survey is published.
The latest estimates for 1991–92 for direct taxes and indirect taxes excluding the community charge were given in the reply to the hon. Member for Derby, South (Mrs. Beckett) on 20 November 1991, at columns 174–76.
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Multiples of Average Earnings 0.5 0.75 1 1.5 2 3 4 5 7 10 20 VAT — 5.1 5.3 5.5 — — — — — — — Other indirect — 9.5 8.3 7.2 — — — — — — — Community Charge — 6.5 4.9 3.3 — — — — — — — Total 36.1 38.3 40.5 Married, 2 children Amounts, £ per week Income Tax 1.06 20.20 39.33 77.61 134.40 256.88 379.36 501.84 746.80 1,114.24 2,339.04 NICs 10.56 17.45 24.34 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28 Total income tax and NICs 11.62 37.65 63.67 105.89 162.68 285.16 407.64 530.12 775.08 1,142.52 2,367.32 VAT — 9.98 14.67 24.95 — — — — — — — Other indirect — 18.40 21.72 29.01 — — — — — — — Community Charge — 14.13 14.68 15.79 — — — — — — — Total 80.16 114.74 175.64 Percentage of Earnings Income Tax 0.7 8.8 12.8 16.9 21.9 28.0 31.0 32.8 34.8 36.4 38.2 NICs 6.9 7.6 7.9 6.2 4.6 3.1 2.3 1.8 1.3 0.9 0.5 Total income tax and NICs 7.6 16.4 20.8 23.1 26.6 31.0 33.3 34.6 36.2 37.3 38.7 VAT — 4.3 4.8 5.4 — — — — — — — Other indirect — 8.0 7.1 6.3 — — — — — — — Community Charge — 6.2 4.8 3.4 — — — — — — — Total 34.9 37.5 38.2 Notes: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.
2 Since 1990–91, husbands and wives have been 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 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 In order to provide comparability with 1978–79, when support for children was given partly through child tax allowance, child benefit is treated as a negative income tax for the married couple with two children.
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 are estimated to be £306.20 per week in 1990–91.
5 The estimates of indirect taxes apart from the community charge are based on equations derived from the 1985 family expenditure survey, uprated to later years using forecasts of aggregate tax receipts. They 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 the same composition and similar incomes and estimated payments of VAT and other indirect taxes 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 estimates obtained from family expenditure surveys for different years.
6 Estimates of the burden of the community charge have been derived from the 1990 family expenditure survey. All respondents were assumed to pay the charge to which they were liable. The calculations include water charges in order to put the estimates on a comparable basis to the estimates for earlier years. Community charge payments are net of transitional relief and community charge benefit. Since community charge payments vary widely between households with similar incomes, the estimated charge payments are only approximate.