§ Mr. PondTo ask the Secretary of State for Social Security what would be the effect on Government revenues in a full year of(a) a £10 and (b) a £100 increase in the real level of the national insurance contribution ceiling. [8199]
247W
§ Mr. DenhamThe estimated effects on national insurance contribution revenue for 1998–99 are +£190 million and +£1,505 million respectively.
Notes:
1. The figures assume that the weekly upper earnings limit on employees' class 1 contributions would be increased by an additional £10 and £100 from April 1998, and that corresponding increases would be made to the upper profits limit on class 4 contributions paid by self-employed people.
2. The figures also assume that the additional increases would not be applied to the upper earnings limit used for the calculation of employee and employer contracted-out rebates, that the current 10 per cent. class 1 contribution rate would apply to earnings above the present upper earnings limit and that the current 6 per cent. class 4 contribution rate would apply to profits above the present upper profits limit.
Source:
Government Actuary's Department.
§ Mr. PondTo ask the Secretary of State for Social Security if she will estimate the effect on Government revenues in a full year of(a) a freeze and (b) a £10 reduction in the level of the 5 per cent., 7 per cent. and 10 per cent. thresholds for employers' national insurance contributions. [8201]
§ Mr. DenhamThe estimated effects on national insurance contribution revenue for 1998–99 are +£125 million and +£355 million respectively.
Source:
Government Actuary's Department.
§ Mr. PondTo ask the Secretary of State for Social Security if she will list the main taxable benefits in kind which are not subject to national insurance contributions. [8202]
§ Mr. DenhamThe information is in the table:
Type of taxable benefit Net amount chargeable to tax (1995–96) Private medical insurance £650 million Ownership of cars and property transferred to employee £200 million Beneficial loans £200 million Living accommodation £170 million Notes:
1. This figure is likely to include some payments by employers made to third parties on behalf of employees which are subject to class 1 NICs.
2. Regulations exclude payments in kind, services, facilities and accommodation from class 1 NICs. These are not identical with taxable benefits declared on the P11D but the two are broadly similar and therefore the figures on the right hand side give a good indication of the amounts of taxable benefits not subject to NICs.
Source:
Inland Revenue—taxable benefits specifically reported on form P11D.