§ Mr. DewarTo ask the Chancellor of the Exchequer if he will update his answer of 17 December 1991, to the hon. Member for Newcastle upon Tyne, East (Mr. Brown),Official Report, column 121, to provide similar estimates of the burden of direct and indirect taxes for the years 1991–92 and 1992–93; and if he will publish any revisions for earlier years.
§ Mr. Dorrell[pursuant to his reply, 24 November 1992, c. 569.]: Updated figures for 1991–92, including estimates of community charge payments, and the latest estimates for 1992–93 for direct taxes and indirect taxes excluding the community charge are given in the table on a similar basis as that provided to the hon. Member for Newcastle upon Tyne, East on 17 December 1991.
Estimates of community charge payments in 1992–93 for specimen households are not yet available.
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Income tax, National Insurance contributions and indirect tax payments at multiples of average earnings 1991–92 Multiples of average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 Single Amounts, £ per week Income tax 25.25 45.79 66.33 107.42 169.25 300.73 432.21 563.69 826.65 1,221.09 2,535.89 NICs 11.15 18.55 25.94 31.46 31.46 31.46 31.46 31.46 31.46 31.46 31.46 Total income tax and NICs 36.40 64.34 92.28 138.88 200.71 332.19 463.67 595.15 858.11 1,252.55 2,567.35 VAT — 13.25 17.73 27.44 — — — — — — — Other indirect — 18.42 22.76 32.18 — — — — — — — Community Charge — 6.86 7.05 7.45 — — — — — — — TOTAL — 102.88 139.82 205.96 — — — — — — — Percentage of earnings Income tax 15.4 18.6 20.2 21.8 25.7 30.5 32.9 34.3 35.9 37.1 38.6 NICs 6.8 7.5 7.9 6.4 4.8 3.2 2.4 1.9 1.4 1.0 0.5 Total income tax and NICs 22.1 26.1 28.1 28.2 30.5 33.7 35.3 36.2 37.3 38.1 39.1 VAT — 5.4 5.4 5.6 — — — — — — — Other indirect — 7.5 6.9 6.5 — — — — — — — Community Charge — 2.8 2.1 1.5 — — — — — — — TOTAL — 41.7 42.5 41.8 — — — — — — — Married, no children Amounts, £ per week Income tax 16.98 37.52 58.06 99.15 156.02 287.50 418.98 550.46 813.42 1,207.86 2,522.66 NICs 11.15 18.55 25.94 31.46 31.46 31.46 31.46 31.46 31.46 31.46 31.46 Total income tax and NICs 28.13 56.07 84.01 130.61 187.48 318.96 450.44 581.92 844.88 1,239.32 2,554.12 VAT — 12.23 17.10 27.67 — — — — — — — Other indirect — 20.58 25.04 34.74 — — — — — — — Community Charge — 11.09 11.22 11.49 — — — — — — — TOTAL — 99.96 137.37 204.51 — — — — — — — Percentage of earnings Income tax 10.3 15.2 17.7 20.1 23.7 29.2 31.9 33.5 35.4 36.7 38.4 NICs 6.8 7.5 7.9 6.4 4.8 3.2 2.4 1.9 1.4 1.0 0.5 Total income tax and NICs 17.1 22.7 25.6 26.5 28.5 32.3 34.3 35.4 36.7 37.7 38.9 VAT — 5.0 5.2 5.6 — — — — — — — Other indirect — 8.3 7.6 7.0 — — — — — — — Community Charge — 4.5 3.4 2.3 — — — — — — — TOTAL — 40.5 41.8 41.5 — — — — — — — Married, both working Amounts, £ per week Income tax 1.14 21.68 42.22 83.31 124.40 212.49 325.27 456.75 719.71 1,114.15 2,428.95 NICs 7.51 14.91 22.30 37.09 51.49 62.92 62.92 62.92 62.92 62.92 62.92 Total income tax and NICs 8.65 36.59 64.53 120.41 175.88 275.41 388.19 519.67 782.63 1,177.07 2,491.87 VAT — 13.99 19.27 29.84 — — — — — — — Other indirect — 23.73 27.59 35.30 — — — — — — — Community Charge — 11.67 11.72 11.82 — — — — — — — TOTAL — 85.98 123.11 197.37 — — — — — — — Percentage of earnings Income tax 0.7 8.8 12.8 16.9 18.9 21.5 24.7 27.8 31.3 33.9 36.9 NICs 4.6 6.0 6.8 7.5 7.8 6.4 4.8 3.8 2.7 1.9 1.0 Total income tax and NICs 5.3 14.8 19.6 24.4 26.8 27.9 29.5 31.6 34.0 35.8 37.9 VAT — 5.7 5.9 6.1 — — — — — — — Other indirect — 9.6 8.4 7.2 — — — — — — — Community Charge — 4.7 3.6 2.4 — — — — — — — TOTAL — 34.9 37.5 40.0 — — — — — — — Married, two children Amounts, £ per week Income tax 0.85 21.39 41.93 83.02 139.89 271.37 402.85 534.33 797.29 1,191.73 2,506.53 NICs 11.15 18.55 25.94 31.46 31.46 31.46 31.46 31.46 31.46 31.46 31.46 Total income tax and NICs 12.00 39.94 67.88 114.48 171.35 302.83 434.31 565.79 828.75 1,223.19 2,537.99 VAT — 12.10 17.61 29.59 — — — — — — — Other indirect — 20.33 23.76 31.19 — — — — — — — Community Charge — 10.82 11.43 12.64 — — — — — — — TOTAL — 83.18 120.68 187.91 — — — — — — —
Multiples of average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 Percentage of earnings Income tax 0.5 8.7 12.8 16.8 21.3 27.5 30.6 32.5 34.7 36.3 38.1 NICs 6.8 7.5 7.9 6.4 4.8 3.2 2.4 1.9 1.4 1.0 0.5 Total income tax and NICs 7.3 16.2 20.7 23.2 26.1 30.7 33.0 34.4 36.0 37.2 38.6 VAT — 4.9 5.4 6.0 — — — — — — — Other indirect — 8.2 7.2 6.3 — — — — — — — Community Charge — 4.4 3.5 2.6 — — — — — — — TOTAL — 33.7 36.7 38.1 — — — — — — —
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Income tax, National Insurance contributions and indirect tax payments at multiples of average earnings 1992–93 Multiples of average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 Single Amounts, £ per week Income tax 24.76 46.39 68.01 111.26 180.01 318.41 456.81 595.21 872.01 1,287.21 2,671.21 NICs 11.79 19.58 27.36 32.67 32.67 32.67 32.67 32.67 32.67 32.67 32.67 Total income tax and NICs 36.55 65.96 95.37 143.93 212.68 351.08 489.48 627.88 904.68 1,319.88 2,703.88 VAT — 14.13 18.85 29.13 — — — — — — — Other indirect — 18.55 22.88 32.32 — — — — — — — TOTAL — 98.65 137.11 205.39 — — — — — — — Percentage of earnings Income tax 14.3 17.9 19.7 21.4 26.0 30.7 33.0 34.4 36.0 37.2 38.6 NICs 6.8 7.5 7.9 6.3 4.7 3.1 2.4 1.9 1.3 0.9 0.5 Total income tax and NICs 21.1 25.4 27.6 27.7 30.7 33.8 35.4 36.3 37.4 38.1 39.1 VAT — 5.4 5.4 5.6 — — — — — — — Other indirect — 7.1 6.6 6.2 — — — — — — — TOTAL — 38.0 39.6 39.6 — — — — — — — Married, no children Amounts, £ per week Income tax 16.50 38.12 59.75 103.00 166.78 305.18 443.58 581.98 858.78 1,273.98 2,657.98 NICs 11.79 19.58 27.36 32.67 32.67 32.67 32.67 32.67 32.67 32.67 32.67 Total income tax and NICs 28.29 57.70 87.11 135.67 199.45 337.85 476.25 614.65 891.45 1,306.65 2,690.65 VAT — 13.03 18.17 29.36 — — — — — — — Other indirect — 20.75 25.14 34.72 — — — — — — — TOTAL — 91.50 130.40 199.70 — — — — — — — Percentage of earnings Income tax 9.5 14.7 17.3 19.8 24.1 29.4 32.1 33.6 35.5 36.8 38.4 NICs 6.8 7.5 7.9 6.3 4.7 3.1 2.4 1.9 1.3 0.9 0.5 Total income tax and NICs 16.3 22.2 25.2 26.1 28.8 32.5 34.4 35.5 36.8 37.8 38.9 VAT — 5.0 5.3 5.7 — — — — — — — Other indirect — 8.0 7.3 6.7 — — — — — — — TOTAL — 35.2 37.7 38.5 — — — — — — — Married, both working Amounts, £ per week Income tax 1.48 19.68 41.26 84.51 127.76 224.42 346.79 485.19 761.99 1,177.19 2,561.19 NICs 8.01 15.79 23.58 39.15 53.80 65.34 65.34 65.34 65.34 65.34 65.34 Total income tax and NICs 9.49 35.48 64.84 123.66 181.76 289.76 412.13 550.53 827.33 1,242.53 2,626.53 VAT — 15.07 20.65 31.80 — — — — — — — Other indirect — 24.02 27.83 33.44 — — — — — — — TOTAL — 74.57 113.32 190.90 — — — — — — — Percentage of earnings Income tax 0.9 7.6 11.9 16.3 18.5 21.6 25.1 28.0 31.5 34.0 37.0 NICs 4.6 6.1 6.8 7.5 7.8 6.3 4.7 3.8 2.7 1.9 0.9 Total income tax and NICs 5.5 13.7 18.7 23.8 26.2 27.9 29.8 31.8 34.2 35.9 38.0 VAT — 5.8 6.0 6.1 — — — — — — — Other indirect — 9.3 8.0 6.8 — — — — — — — TOTAL — 28.7 32.8 36.8 — — — — — — — Married, two children Amounts, £ per week Income tax -0.95 20.67 42.30 85.55 149.33 287.73 426.13 564.53 841.33 1,256.53 2,640.53
Multiples of average earnings 50 75 100 150 200 300 400 500 700 1,000 2,000 NICs 11.79 19.58 27.36 32.67 32.67 32.67 32.67 32.67 32.67 32.67 32.67 Total income tax and NICs 10.84 40.25 69.66 118.22 182.00 320.40 458.80 597.20 874.00 1,289.20 2,673.20 VAT — 12.96 18.78 31.46 — — — — — — — Other indirect — 20.45 23.90 31.42 — — — — — — — TOTAL — 73.66 112.34 181.09 — — — — — — — Percentage of earnings Income tax -0.6 8.0 12.2 16.5 21.6 27.7 30.8 32.6 34.7 36.3 38.2 NICs 6.8 7.5 7.9 6.3 4.7 3.1 2.4 1.9 1.3 0.9 0.5 Total income tax and NICs 6.3 15.5 20.1 22.8 26.3 30.9 33.2 34.5 36.1 37.3 38.6 VAT — 5.0 5.4 6.1 — — — — — — — Other indirect — 7.9 6.9 6.1 — — — — — — — TOTAL — 28.4 32.5 34.9 — — — — — — — 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 1987–79, 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 £328–70 per week in 1991–92 and is estimated to be £346.00 per week in 1992–93, based on the Autumn Statement earnings growth assumption of 5¼ per cent. in 1992–93.
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 has been derived from the 1991 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 benefits. Since community dharge payments vary widely between households with similar incomes, the estimated charge payments are only approximate.