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Tax And National Insurance

Volume 979: debated on Tuesday 19 February 1980

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asked the Chancellor of the Exchequer if he will present the amount paid in tax and national insurance as a percentage of the earnings of (a) a single person, (b) a married couple, (c) a married couple with two children and (d) a married couple with four children, earning: (i) two-thirds average earnings, (ii) average earnings, (iii) twice average earnings, (iv) five times average earnings and (v) 10 times average earnings in 1949–50, 1959–60, 1964–65, 1970–71, 1974–75 and each subsequent year.

[pursuant to his reply, 14 February 1980]: The figures are as follows:

SINGLE
Percentage income paid in Tax and NIC

Two-thirds average earnings

Average earnings

Twice average earnings

Five times average earnings

Ten times average earnings

Year

Tax

NIC

Tax

NIC

Tax

NIC

Tax

NIC

Tax

NIC

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

1949–506·95·312·63·522·91·830·70·743·80·4
1959–608·35·514·03·722·11·832·;60·746·30·4
1964–6511·15·917·25·323·62·728·21·139·40·5
1970–7118·37·122·95·927·53·036·41·254·00·6
1974–7521·06·225·05·929·03·544·41·460·20·7
1975–7623·75·527·55·532·63·150·31·365·40·6
1976–7724·15·827·85·833·04·052·21·666·90·8
1977–7821·85·825·95·830·74·050·41·666·30·8
1978–7920·26·524·56·528·84·548·81·865·50·9
1979–80(October)19·06·522·76·526·34·339·71·749·90·9

MARRIED COUPLES
Percentage of income paid in Tax and NIC

Two-thirds average earnings

Average earnings

Twice average earnings

Five times average earnings

Ten times average earnings

Year

Tax

NIC

Tax

NIC

Tax

NIC

Tax

NIC

Tax

NIC

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

1949–500·65·36·93·518·71·829·10·743·00·4
1959–603·75·69·23·719·31·831·00·745·30·4
1964–655·45·912·25·321·22·727·21·138·60·5
1970–7112·47·118·95·825·53·035·21·253·20·6
1974–7516·46·221·95·927·53·543·11·459·40·7
1975–7619·05·524·45·530·63·149·01·364·60·6
1976–7719·05·824·35·830·74·050·71·666·10·8
1977–7815·25·821·55·828·14·048·51·665·20·8
1978–7914·26·520·56·526·74·547·01·864·50·9
1979–8013·46·519·06·524·54·338·31·749·10·9

MARRIED COUPLES WITH TWO CHILDREN UNDER 11 YEARS
Percentage of income paid in Tax and NIC

Two-thirds average earnings

Average earnings

Twice average earnings

Five times average earnings

Ten times average earnings

Year

Tax

NIC

Tax

NIC

Tax

NIC

Tax

NIC

Tax

NIC

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

1949-505·03·411·81·726·20·741·60·3
1959-605·32·33·614·11·828·00·743·40·4
1964-655·74·55·216·32·625·31·137·00·5
1970-715·76·814·25·723·33·033·41·251·70·6
1974-758·96·116·85·824·83·540·71·457·80·7
1975-7612·75·320·05·427·43·146·91·363·20·6
1976-7711·65·619·35·627·44·048·21·664·60·8
1977-7810·05·517·85·625·83·946·81·664·20·8
1978-7911·06·017·96·125·24·445·81·863·70·9
1979-8012·05·817·66·023·54·237·81·748·70·9

MARRIED COUPLE WITH FOUR CHILDREN 2 AGED UNDER 11, 2 AGED 11 TO 16
Percentage of income paid in Tax and NIC

Two-thirds average earnings

Average earnings

Twice average earnings

Five times average earnings

Ten times average earnings

Year

Tax

NIC

Tax

NIC

Tax

NIC

Tax

NIC

Tax

NIC

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

Per cent.

1949-504·53·26·71·723·50·740·30·3
1959-604·83·38·11·824·30·741·00·4
1964-650·05·35·011·42·623·31·135·10·5
1970-710·96·210·35·320·72·928·51·250·20·6
1974-752·35·712·05·622·23·438·11·456·10·7
1975-767·54·916·05·125·33·044·41·361·90·6
1976-775·45·214·75·424·63·945·31·663·10·8
1977-784·75·213·85·423·63·844·91·663·10·8
1978-797·75·515·25·823·64·244·41·862·90·9
1979-8010·95·316·45·622·74·037·21·748·40·9

For years up to 1964–65 the earnings figures are based on the Department of Employment's estimates of the average earnings of full-time adult male manual workers in October of each year. From 1970–71 to 1978–79 the figures used are the average of the new earnings survey estimates of the earnings of full-time adult male manual workers for April at the start and finish of each income tax year. For 1979–80 the estimated level of earnings for October 1979 has been used.

This has been obtained by updating the figure in the New Earnings Survey for April 1979 of average earnings of full-time adult male manual workers taking account of the movements in a centred 3-month moving average of the monthly index of average earnings of all employees covering the whole economy.

PERCENTAGE OF AVERAGE EARNINGS PLUS FAMILY ALLOWANCE OR CHILD BENEFITS PAID IN TAX NIC

year

Single percentage

Married couple percentage

Married couple two children under 11 percentage

Married couple two children under 11, two aged 11–16 percentage

1949–5016·010·43·43·2
1959–6017·612·85·93·3
1969–7027·423·618·113·5
1979–80 (October)29·225·423·622·0

For years up to 1969–70 the earnings figures are based on the Department of Employment's estimates of the average earnings of full-time adult male manual workers in October of each year. For 1979–80 the estimated level of earnings for October 1979 has been used.

This has been obtained by updating the figure in the new earnings survey for April 1979 of average earnings of full-time adult male manual workers taking into account of the movements in a centred 3-month moving average of the monthly index of average earnings of all employees covering the whole economy.

The national insurance contributions used are at the not contracted out rate.

For comparison with other recent questions, family allowance and child benefit have been included in income where appropriate.