§ Mr. GibbTo ask the Chancellor of the Exchequer if he will set out the amounts(a) in current prices, (b) in constant 2000–01 prices and (c) as percentages of personal income, taken by (i) income taxes, (ii) national insurance contributions, (iii) value-added tax, (iv) other central Government indirect taxes, (v) the aggregate of (i) to (iv), (vi) average council tax payments and (vii) the aggregate of (i) to (iv) and (viii) for (1) a single person,(2) a married couple without children, both working and(3) a married couple with two children, husband in work, wife not working, in each case at 50, 75, 100, 150 and 200 per cent. of average earnings for the financial year 2000–01, taking account of changes announced in his Budget Statement and previously announced changes and for each of the years (v) 1996–97, (w) 1997–98, (x) 1998–99, (y) 1999–2000, (z) 2000–01. [153381]
§ Dawn PrimaroloThe available information, which shows income tax (including Child Benefit and Working Families Tax Credit from its first full year of implementation) and National Insurance Contributions, at multiples of median full-time earnings of all employees is given in the table. The figures are shown in current prices and as percentages of income, for the years 1996–97 to 2001–02, and take account of changes announced in the Budget. Estimating the impact of indirect taxes on these very specific family types is meaningless because spending patterns vary considerably between households of the same type and income. The level of council tax payments will also vary depending on where families live.
The figures use median all-employee earnings. However, the data are only available since 1983. Looking over a longer time period, using male mean earnings, the series shows that the direct tax burden on a single earner family on average earnings and with two children in 2001–02 will be the lowest since 1972.
844W
845W
Multiples of median earnings 50% 75% 100% 150% 200% Single person 1996–97 £ per week Gross income 153.98 230.97 307.96 461.94 615.92 Income Tax 16.58 35.06 53.53 90.49 135.94 NICs 10.52 18.22 25.92 40.62 40.62 Percentage of gross earnings Income Tax 10.8 15.2 17.4 19.6 22.1 NICs 6.8 7.9 8.4 8.8 6.6 Tax and NICs 17.6 23.1 25.8 28.4 28.7 1997–98 £per week Gross income 160.37 240.55 320.73 481.10 641.46 Income Tax 16.63 35.07 53.51 90.40 137.78 NICs 11.08 19.09 27.11 41.54 41.54 Percentage of gross earnings Income Tax 10.4 14.6 16.7 18.8 21.5 NICs 6.9 7.9 8.5 8.6 6.5 Tax and NICs 17.3 22.5 25.1 27.4 28.0 1998–99 £ per week Gross income 166.35 249.53 332.70 499.05 665.40 Income Tax 17.22 36.36 55.49 93.75 142.81 NICs 11.52 19.83 28.15 43.38 43.38 Percentage of gross earnings Income Tax 10.4 14.6 16.7 18.8 21.5 NICs 6.9 7.9 8.5 8.7 6.5 Tax and NICs 17.3 22.5 25.1 27.5 28.0 1999–2000 £ per week Gross income 172.23 258.34 344.45 516.68 688.90 Income Tax 16.69 36.49 56.30 95.91 146.93 NICs 10.62 19.23 27.85 43.40 43.40 Percentage of gross earnings Income Tax 9.7 14.1 16.3 18.6 21.3 NICs 6.2 7.4 8.1 8.4 6.3 Tax and NICs 15.9 21.6 24.4 27.0 27.6 2000–01 £ per week Gross income 179.98 269.96 359.95 539.93 719.90 Income Tax 17.53 37.33 57.13 96.72 152.41 NICs 10.40 19.40 28.40 45.90 45.90 Percentage of gross earnings Income Tax 9.7 13.8 15.9 17.9 21.2 NICs 5.8 7.2 7.9 8.5 6.4 Tax and NICs 15.5 21.0 23.8 26.4 27.5 2001–02 £ per week Gross income 188.07 282.11 376.15 564.22 752.30 Income Tax 17.85 38.54 59.23 100.60 159.93 NICs 10.11 19.51 28.91 47.72 48.80 Percentage of gross earnings Income Tax 9.5 13.7 15.7 17.8 21.3 NICs 5.4 6.9 7.7 8.5 6.5 Tax and NICs 14.9 20.6 23.4 26.3 27.7 Two earner married couple, no children 1996–97 £ per week Gross income 153.98 230.97 307.96 461.94 615.92 Income Tax 0.00 12.07 28.96 64.95 101.90 NICs 5.64 13.34 21.04 36.43 51.83 Percentage of gross earnings Income Tax 0.0 5.2 9.4 14.1 16.5 NICs 3.7 5.8 6.8 7.9 8.4 Tax and NICs 3.7 11.0 16.2 21.9 25.0 1997–98 per week Gross income 160.37 240.55 320.73 481.10 641.46 Income Tax 0.00 11.72 28.83 64.86 101.74 NICs 6.12 14.13 22.15 38.19 54.23
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Multiples of median earnings 50% 75% 100% 150% 200% Percentage of gross earnings Income Tax 0.0 4.9 9.0 13.5 15.9 NICs 3.8 5.9 6.9 7.9 8.5 Tax and NICs 3.8 10.7 15.9 21.4 24.3 1998–99 £ per week Gross income 166.35 249.53 332.70 499.05 665.40 Income Tax 0.00 12.16 29.88 67.23 105.49 NICs 6.40 14.71 23.03 39.67 56.30 Percentage of gross earnings Income Tax 0.0 4.9 9.0 13.5 15.9 NICs 3.8 5.9 6.9 7.9 8.5 Tax and NICs 3.8 10.8 15.9 21.4 24.3 1999–2000 £ per week Gross income 172.23 258.34 344.45 516.68 688.90 Income Tax 0.00 10.94 29.59 69.20 108.81 NICs 4.02 12.63 21.25 38.47 55.69 Percentage of gross earnings Income Tax NICs 2.3 4.9 6.2 7.4 8.1 Tax and NICs 2.3 9.1 14.8 20.8 23.9 2000–01 £ per week Gross income 179.98 269.96 359.95 539.93 719.90 Income Tax 2.37 15.94 35.07 74.66 114.26 NICs 3.20 11.80 20.80 38.79 56.79 Percentage of gross earnings Income Tax 1.3 5.9 9.7 13.8 15.9 NICs 1.8 4.4 5.8 7.2 7.9 Tax and NICs 3.1 10.3 15.5 21.0 23.8 2001–02 £ per week Gross income 188.07 282.11 376.15 564.22 752.30 Income Tax 2.56 16.28 35.70 77.08 118.46 NICs 2.58 10.81 20.21 39.02 57.83 Percentage of gross earnings Income Tax NICs 1.4 3.8 5.4 6.9 7.7 Tax and NICs 2.7 9.6 14.9 20.6 23.4 Single-earner married couple, two children 1996–97 £ per week Gross income 153.98 230.97 307.96 461.94 615.92 Income Tax 11.41 29.89 48.37 85.33 130.78 NICs 10.52 18.22 25.92 40.62 40.62 Child Benefit (CB) 19.60 19.60 19.60 19.60 19.60 Percentage of gross earnings Net income tax 7.4 12.9 15.7 18.5 21.2 NICs 6.8 7.9 8.4 8.8 6.6 Net income tax + NICs—CB 1.5 12.3 17.8 23.0 24.6 1997–98 £per week Gross income 160.37 240.55 320.73 481.10 641.46 Income Tax 11.35 29.79 48.23 85.12 132.50 NICs 11.08 19.09 27.11 41.54 41.54 Child Benefit (CB) 20.05 20.05 20.05 20.05 20.05 Percentage of gross earnings Net income tax 7.1 12.4 15.0 17.7 20.7 NICs 6.9 7.9 8.5 8.6 6.5 Net income tax + NICs—CB 1.5 12.0 17.2 22.2 24.0 1998–99 £ per week Gross income 166.35 249.53 332.70 499.05 665.40 Income Tax 11.74 30.87 50.00 88.27 137.33 NICs 11.52 19.83 28.15 43.38 43.38 Child Benefit (CB) 20.75 20.75 20.75 20.75 20.75 Percentage of gross earnings Net income tax 7.1 12.4 15.0 17.7 20.6 NICs 6.9 7.9 8.5 8.7 6.5 Net income tax + NICs–CB 1.5 12.0 17.3 22.2 24.0
Multiples of median earnings 50% 75% 100% 150% 200% 1999–2000 £ per week Gross income 172.23 258.34 344.45 516.68 688.90 Income Tax 12.90 32.71 52.51 92.12 143.14 NICs 10.62 19.23 27.85 43.40 43.40 Child Benefit (CB) 24.00 24.00 24.00 24.00 24.00 Percentage of gross earnings Net income tax 7.5 12.7 15.2 17.8 20.8 NICs 6.2 7.4 8.1 8.4 6.3 Net income tax + NICs—CB –0.3 10.8 16.4 21.6 23.6 2000–01 £ per week Gross income 179.98 269.96 359.95 539.93 719.90 Income Tax 17.53 37.33 57.13 96.72 152.41 NICs 10.40 19.40 28.40 45.90 45.90 Child Benefit (CB) 25.00 25.00 25.00 25.00 25.00 Working Families Tax Credit 82.27 48.62 14.96 0.00 0.00 Percentage of gross earnings Net income tax –36.0 –4.2 11.7 17.9 21.2 NICs 5.8 7.2 7.9 8.5 6.4 Net income tax + NICs—CB –44.1 –6.3 12.7 21.8 24.1 2001–02 £ per week Gross Income 188.07 282.11 376.15 564.22 752.30 Income Tax 7.85 28.54 49.23 90.60 156.57 NICs 10.11 19.51 28.91 47.72 48.80 Child Benefit (CB) 25.85 25.85 25.85 25.85 25.85 Working Families Tax Credit 79.98 44.81 9.64 0.00 0.00 Percentage of gross earnings Net income tax –38.4 –5.8 10.5 16.1 20.8 NICs 5.4 6.9 7.7 8.5 6.5 Net income tax + NICs—CB –46.7 –8.0 11.3 19.9 23.9 Notes
1. Income tax payments are calculated on the basis 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 National Insurance contributions at the contracted-in rate.
2. Earnings are taken to be the median gross weekly earnings of all full-time employees on adult rates with pay unaffected by absence. (Median earnings are more representative of the population as a whole than mean male full-time earnings.)
3. A family with two children is assumed to have both children aged under 11.
4. In line with the convention in the Tax Benefit Reference Manual, Child Benefit is treated as negative income tax.
5. Working Families Tax Credit is included from its first full year of implementation in 2000–01.
6. For the two earner family it is assumed that earnings are split 60%:40%.