asked the Chancellor of the Exchequer if he will publish the figures tabulating the extra revenue obtained from the higher rate of income tax bands, in each year since 1978–79, at current and constant prices.
Estimates of the income tax due from the higher rate income tax bands in excess of basic rate liability are as follows. The figures exclude yield from the investment income surcharge.
| £ million | ||
| at Current Prices | at 1978–79 prices* | |
| 1978–79 | 810 | 810 |
| 1979–80 | 780 | 675 |
| 1980–81 | 980 | 730 |
| 1981–82 | 1,350 | 900 |
| 1982–83 | 1,420 | 880 |
| 1983–84† | 1,440 | 860 |
| 1984–85† | 1,675 | 950 |
| 1985–86† | 1,880 | 1,010 |
| * The column has been expressed in 1978–79 prices using the retail price index. | ||
| † Provisional. | ||
asked the Chancellor of the Exchequer what is the expected total of yield of the higher rates of income tax for 1985–86.
The yield of income tax at higher rates due in respect of 1985–86 incomes is estimated at £4,730 million (of which £1,880 million is in respect of liability in excess of the basic rate element).
asked the Chancellor of the Exchequer what is his latest estimate of the expected yield in the 1984–85 tax year from higher rate income tax in respect
| Reductions in basic rate necessary to restore tax payments to their 1978–79 levels | ||||||
| 1984–85 | 1985–86 | |||||
| Single | Married | Married plus 2 children | Single | Married | Married plus 2 children | |
| Percentages of average earnings | ||||||
| (a) in real terms | ||||||
| 75 | 12·1 | 15·5 | 12·5 | 12·7 | 16·0 | 12·9 |
| 100 | 10·9 | 12·9 | 10·9 | 11·5 | 13·5 | 11·4 |
| 150 | 9·9 | 11·0 | 9·7 | 10·4 | 11·5 | 10·2 |
| (b) as a percentage of gross earnings | ||||||
| 75 | 5·1 | 7·0 | 6·6 | 4·7 | 6·3 | 6·1 |
| 100 | 4·2 | 5·2 | 4·9 | 3·9 | 4·7 | 4·6 |
| 150 | 3·5 | 4·0 | 3·8 | 3·3 | 3·7 | 3·5 |
Notes to Tables
Average earnings are taken to be the average gross weekly earnings of all full time males on adult rates with pay unaffected by absence. Figures for 1984–85 and 1985–86 are illustrative and assume growth of 7½ and 7 per cent. respectively.
2. Income tax payments are calculated on the assumption that households have no other tax relief apart from the standard allowances. Earners are assumed to be contracted-in for NI purposes.
3. Indirect tax payments are estimates based on the 1983 family expenditure survey. Because of sampling variation, there can be substantial differences between the estimates obtained from different years' surveys.
asked the Chancellor of the Exchequer if he will publish in the Official Report tables showing (a) the proportion in percentage terms, (b) the amount in current prices, and (c) the amount in constant 1984–85 prices of personal income taken by taxation and rates for the year 1985–86, taking account of any changes announced in his
of taxpayers whose highest marginal rate of tax is (a) 40 per cent. (b) 45 per cent., (c) 50 per cent., (d) 55 per cent. and (e) 60 per cent., respectively.
The yields of income tax, both at higher rates and at the excess of those rates over the basic rate element, due in respect of 1984–85 incomes are estimated as follows:
| Tax due | ||
| Taxpayer's marginal rate of tax Per cent. | at higher rates (£ million) | at excess over basic rate (£ million) |
| 40 | 180 | 45 |
| 45 | 500 | 140 |
| 50 | 680 | 230 |
| 55 | 520 | 200 |
| 60 | 2,330 | 1,060 |
| Total | 4,210 | 1,675 |
asked the Chancellor of the Exchequer if he will now update his answer to the hon. Member for Birmingham, Perry Barr of 27 March 1984, Official Report, Column 109, by giving information about the reductions in the basic rate of income tax which would be necessary to restore tax payments to their 1978–79 levels in 1985–86.
[pursuant to his reply, 29 March 1985, c. 369.]: Estimates for 1984–85 and 1985–86 are in the table. The figures for 1984–85 have been revised to include estimates of indirect tax payments based on the most recent family expenditure survey.Real take home pay for these illustrative households will be over 11 per cent. higher in 1985–86 than it was in 1978–79.Budget statement and any previously announced changes, and for each of the years, 1978–79, 1979–80, 1980–81, 1981–82, 1982–83, 1983–84 and 1984–85 for each level of average earnings, each category of taxpayer, and each category of taxation and rates, in the manner of the answer of 21 March 1984,
Official Report, columns 480–86.
[pursuant to his reply, 19 March 1985, c. 465]: Figures for all the years requested could be provided only at disproportionate cost. Figures for the years 1983–84 to 1985–86 are in the tables.
| 50 per cent. of average earnings | |||||||||
| Single | Married both working | Married couple with two children | |||||||
| £ per week | £ per week 1984–85 prices | Per cent. of gross income | £ per week | £ per week 1984–85 prices | Per cent. of gross income | £ per week | £ per week 1984–85 prices | Per cent. of gross income | |
| 1983–84 | |||||||||
| (a) Income tax | 15·35 | 16·12 | 18·0 | — | — | — | 9·53 | 10·01 | 9·8 |
| (b) NIC | 7·70 | 8·09 | 9·0 | 7·70 | 8·09 | 9·0 | 7·70 | 8·09 | 7·9 |
| (c) (a) plus (b) | 23·05 | 24·21 | 27·0 | 7·70 | 8·09 | 9·0 | 17·23 | 18·09 | 17·6 |
| 1984–85 | |||||||||
| (a) Income tax | 16·00 | 16·00 | 17·4 | — | — | — | 9·37 | 9·37 | 8·9 |
| (b) NIC | 8·27 | 8·27 | 9·0 | 8·27 | 8·27 | 9·0 | 8·27 | 8·27 | 7·9 |
| (c) (a) plus (b) | 24·27 | 24·27 | 26·4 | 8·27 | 8·27 | 9·0 | 17·64 | 17·64 | 16·8 |
| 1985–86 | |||||||||
| (a) Income tax | 16·79 | 15·91 | 17·1 | — | — | — | 9·57 | 9·07 | 8·5 |
| (b) NIC | 8·85 | 8·39 | 9·0 | 7·47 | 7·08 | 7·6 | 8·85 | 8·39 | 7·9 |
| (c) (a) plus (b) | 25·64 | 24·30 | 26·1 | 7·47 | 7·08 | 7·6 | 18·42 | 17·46 | 16·4 |
| 75 per cent. of average earnings | |||||||||
| Single | Married both working | Married couple with two children | |||||||
| £ per week | £ per week 1984–85 prices | Per cent. of gross income | £ per week | £ per week 1984–85 prices | Per cent. of gross income | £ per week | £ per week 1984–85 prices | Per cent. of gross income | |
| 1983–84 | |||||||||
| (a) Income tax | 28·18 | 29·59 | 22·0 | 12·05 | 12·65 | 9·4 | 22·35 | 23·47 | 15·9 |
| (b) NIC | 11·54 | 12·12 | 9·0 | 11·54 | 12·12 | 9·0 | 11·54 | 12·12 | 8·2 |
| (c) VAT | 5·04 | 5·29 | 3·9 | 5·91 | 6·21 | 4·6 | 4·51 | 4·74 | 3·2 |
| (d) Other indirect taxes | 10·27 | 10·79 | 8·0 | 15·52 | 16·30 | 12·1 | 11·71 | 12·30 | 8·3 |
| (e) (a) plus (b) plus (c) plus (d) | 55·03 | 57·79 | 42·9 | 45·02 | 47·28 | 35·1 | 50·11 | 52·62 | 35·7 |
| (f) Domestic rates | 4·82 | 5·06 | 3·8 | 5·63 | 5·91 | 4·4 | 5·36 | 5·63 | 3·8 |
| (g) (e) plus (f) | 59·85 | 62·85 | 46·7 | 50·65 | 53·19 | 39·5 | 55·47 | 58·25 | 39·5 |
| 1984–85 | |||||||||
| (a) Income tax | 29·79 | 29·79 | 21·6 | 11·59 | 11·59 | 8·4 | 23·15 | 23·15 | 15·3 |
| (b) NIC | 12·41 | 12·41 | 9·0 | 12·41 | 12·41 | 9·0 | 12·41 | 12·41 | 8·2 |
| (c) VAT | 5·68 | 5·68 | 4·1 | 6·62 | 6·62 | 4·8 | 5·28 | 5·28 | 3·5 |
| (d) Other indirect taxes | 10·76 | 10·76 | 7·8 | 16·37 | 16·37 | 11·9 | 12·51 | 12·51 | 8·3 |
| (e) (a) plus (b) plus (c) plus (d) | 58·64 | 58·64 | 42·5 | 46·99 | 46·99 | 34·1 | 53·35 | 53·35 | 35·3 |
| (f) Domestic rates | 5·68 | 5·68 | 4·1 | 5·77 | 5·77 | 4·2 | 5·50 | 5·50 | 3·6 |
| (g) (e) plus (f) | 64·32 | 64·32 | 46·7 | 52·76 | 52·76 | 38·3 | 58·85 | 58·85 | 38·9 |
| 1985–86 | |||||||||
| (a) Income tax | 31·54 | 29·90 | 21·4 | 11·60 | 11·00 | 7·9 | 24·33 | 23·06 | 15·1 |
| (b) MIC | 13·28 | 12·59 | 9·0 | 11·80 | 11·18 | 8·0 | 13·28 | 12·59 | 8·2 |
| (c) VAT | 6·07 | 5·75 | 4·1 | 7·24 | 6·86 | 4·9 | 5·62 | 5·33 | 3·5 |
| (d) Other indirect taxes | 11·49 | 10·89 | 7·8 | 17·65 | 16·73 | 12·0 | 13·27 | 12·58 | 8·2 |
| (e) (a) plus (b) plus (c) plus (d) | 62·38 | 59·13 | 42·3 | 48·29 | 45·77 | 32·7 | 56·50 | 53·55 | 35·0 |
| (f) Domestic rates | 5·24 | 4·97 | 3·6 | 6·15 | 5·83 | 4·2 | 5·84 | 5·54 | 3·6 |
| (g) (e) plus (f) | 67·62 | 64·09 | 45·8 | 54·44 | 51·60 | 36·9 | 62·34 | 59·09 | 38·6 |
| 100 per cent. of average earnings | |||||||||
| Single | Married both working | Married couple with two children | |||||||
| £ per week | £ per week 1984–85 prices | Per cent. of gross income | £per week | £ per week 1984–85 prices | Per cent. of gross income | £ per week | £ per week 1984–85 prices | Per cent. of gross income | |
| 1983–84 | |||||||||
| (a) Income tax | 41·00 | 43·06 | 24·0 | 24·88 | 26·13 | 14·5 | 35·18 | 36·94 | 19·2 |
| (b) NIC | 15·39 | 16·16 | 9·0 | 15·39 | 16·16 | 9·0 | 15·39 | 16·16 | 8·4 |
| (c) VAT | 7·01 | 7·36 | 4·1 | 7·93 | 8·33 | 4·6 | 6·49 | 6·82 | 3·5 |
| (d) Other indirect taxes | 12·68 | 13·32 | 7·4 | 17·38 | 18·25 | 10·2 | 14·13 | 14·84 | 7·7 |
| (e) (a) plus (b) plus (c) plus (d) | 76·08 | 79·90 | 44·5 | 65·58 | 68·87 | 38·4 | 71·19 | 74·76 | 38·9 |
| (f) Domestic rates | 5·47 | 5·74 | 3·2 | 5·98 | 6·28 | 3·5 | 5·91 | 6·21 | 3·2 |
| (g) (e) plus (f) | 81·55 | 85·64 | 47·7 | 71·56 | 75·15 | 41·8 | 77·10 | 80·97 | 42·1 |
Single
| Married both working
| Married couple with two children
| |||||||
£ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| £ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| £ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| |
1984–85
| |||||||||
(a) Income tax | 43·57 | 43·57 | 23·7 | 25·37 | 25·37 | 13·8 | 36·94 | 36·94 | 18·7 |
(b) NIC | 16·54 | 16·54 | 9·0 | 16·54 | 16·54 | 9·0 | 16·54 | 16·54 | 8·4 |
(c) VAT | 7·88 | 7·88 | 4·3 | 9·10 | 9·10 | 5–0 | 7·48 | 7·48 | 3·8 |
(d) Other indirect taxes | 13·25 | 13·25 | 7·2 | 18·24 | 18·24 | 9–9 | 14·98 | 14·98 | 7·6 |
(e) (a) plus (b) plus (c) plus (d) | 81·24 | 81·24 | 44·2 | 69·25 | 69·25 | 37·7 | 75·94 | 75·94 | 38·5 |
(f) Domestic rates | 5·60 | 5·60 | 3·0 | 6·12 | 6·12 | 3·3 | 6·05 | 6·05 | 3·1 |
(g) (e) plus (f) | 86·84 | 86·84 | 47·2 | 75·37 | 75·37 | 41·0 | 81·99 | 81·99 | 41·6 |
1985–86
| |||||||||
(a) Income tax | 46·29 | 43·88 | 23·5 | 26·36 | 24·99 | 13·4 | 39·08 | 37·04 | 18·5 |
(b) NIC | 17·70 | 16·78 | 9·0 | 16·91 | 16·03 | 8·6 | 17·70 | 16·78 | 8·4 |
(c) VAT | 8·43 | 7·99 | 4·3 | 9·82 | 9·31 | 5·0 | 7·97 | 7·55 | 3·8 |
(d) Other indirect taxes | 14·14 | 13·40 | 7·2 | 19·61 | 18·59 | 10·0 | 15·91 | 15·08 | 7·6 |
(e) (a) plus (b) plus (f) plus (d) | 86·56 | 82·05 | 44·0 | 72·70 | 68·91 | 37·0 | 80·66 | 76·45 | 38·3 |
(f) Domestic rates | 5·95 | 5·64 | 3·0 | 6·52 | 6·18 | 3·3 | 6·42 | 6·09 | 3·0 |
(g) (e) plus (f) | 92·51 | 87·69 | 47·0 | 79·22 | 75·09 | 40·3 | 87·08 | 82·54 | 41·3 |
150 per cent. of average earnings
| |||||||||
Single
| Married both working
| Married couple with two children
| |||||||
£ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| £ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| £ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| |
1983–84
| |||||||||
(a) Income tax | 66·65 | 69·99 | 26·0 | 50·53 | 53·06 | 19·7 | 60·83 | 63·88 | 22·6 |
(b) NIC | 21·15 | 22·21 | 8·2 | 23·09 | 24·25 | 9·0 | 21·15 | 22·21 | 7·9 |
(c) VAT | 11·08 | 11·64 | 4·3 | 11·99 | 12·59 | 4·7 | 10·59 | 11·12 | 3·9 |
(d) Other indirect taxes | 17·68 | 18·57 | 6·9 | 21·07 | 22·13 | 8·2 | 19·15 | 20·11 | 7·1 |
(e) (a) plus (b) plus (c) plus (d) | 116·56 | 122·41 | 45·4 | 106·68 | 112·03 | 41·6 | 111·72 | 117·32 | 41·6 |
(f) Domestic rates | 6·81 | 7·15 | 2·7 | 6·67 | 7·00 | 2·6 | 7·02 | 7·37 | 2·6 |
(g) (e) plus (f) | 123·37 | 129·56 | 48·1 | 113·35 | 119·03 | 44·2 | 118·74 | 124·69 | 44·2 |
1984–85
| |||||||||
(a) Income tax | 71·14 | 71·14 | 25·8 | 52·94 | 52·94 | 19·2 | 64·51 | 64·51 | 22·3 |
(b) NIC | 22·50 | 22·50 | 8·2 | 24·81 | 24·81 | 9·0 | 22·50 | 22·50 | 7·8 |
(c) VAT | 12·47 | 12·47 | 4·5 | 14·04 | 14·04 | 5·1 | 12·08 | 12·08 | 4·2 |
(d) Other indirect taxes | 18·42 | 18·42 | 6·7 | 21·99 | 21·99 | 8·0 | 20·12 | 20·12 | 7·0 |
(e) (a) plus (b) plus (c) plus (d) | 124·53 | 124·53 | 45·2 | 113·78 | 113·78 | 41·3 | 119·21 | 119·21 | 41·3 |
(f) Domestic rates | 6·99 | 6·99 | 2·5 | 6·83 | 6·83 | 2·5 | 7·21 | 7·21 | 2·5 |
(g) (e) plus (f) | 131·52 | 131·52 | 47·7 | 120·61 | 120·61 | 43·7 | 126·42 | 126·42 | 43·8 |
1985–86
| |||||||||
(a) Income tax | 75·80 | 71·85 | 25·7 | 55·86 | 52·95 | 18·9 | 68·58 | 65·00 | 22·2 |
(b) NIC | 23·85 | 22·61 | 8·1 | 26·55 | 25·17 | 9·0 | 23·85 | 22·61 | 7·7 |
(c) VAT | 13·34 | 12·64 | 4·5 | 15·03 | 14·25 | 5·1 | 12·90 | 12·23 | 4·2 |
(d) Other indirect taxes | 19·71 | 18·68 | 6·7 | 23·58 | 22·35 | 8·0 | 21·43 | 20·31 | 6·9 |
(e) (a) plus (b) plus (c) plus (d) | 132·70 | 125·78 | 45·0 | 121·02 | 114·71 | 41·0 | 126·76 | 120·15 | 41·0 |
(f) Domestic rates | 7·42 | 7·03 | 2·5 | 7·26 | 6·88 | 2·5 | 7·64 | 7·24 | 2·5 |
(g) (e) plus (f) | 140·12 | 132·82 | 47·5 | 128·28 | 121·59 | 43·5 | 134·40 | 127·39 | 43·5 |
200 per cent. of average earnings
| |||||||||
Single
| Married both working
| Married couple with two children
| |||||||
£ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| £ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| £ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| |
1983–84
| |||||||||
(a) Income tax | 94·99 | 99·75 | 27·8 | 76·18 | 80·00 | 22·3 | 87·22 | 91·60 | 24·6 |
(b) NIC | 21·15 | 22·21 | 6·2 | 30·78 | 32·32 | 9·0 | 21·15 | 22·21 | 6·0 |
(c) (a) plus (b) | 116·14 | 121·96 | 34·0 | 106·96 | 112·32 | 31·3 | 108·37 | 113·80 | 30·6 |
1984–85
| |||||||||
(a) Income tax | 102·00 | 102·00 | 27·7 | 80·51 | 80·51 | 21·9 | 93·16 | 93·16 | 24·5 |
(b) NIC | 22·50 | 22·50 | 6·1 | 33·08 | 33·08 | 9·0 | 22·50 | 22·50 | 5·9 |
(c) (a) plus (b) | 124·50 | 124·50 | 33·9 | 113·59 | 113·59 | 30·9 | 115·66 | 115·66 | 30·4 |
1985–86
| |||||||||
Single
| Married both working
| Married couple with two children
| |||||||
£ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| £ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| £ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| |
(a) Income tax | 109·24 | 103·55 | 27·8 | 85·37 | 80·92 | 21·7 | 99·63 | 94·44 | 24·5 |
(b) NIC | 23·85 | 22·61 | 6·1 | 35·41 | 33·56 | 9·0 | 23·85 | 22·61 | 5·9 |
(c) (a)plus (b) | 133·09 | 126·15 | 33·8 | 120·78 | 114·48 | 30·7 | 123·48 | 117·04 | 30·3 |
500 per cent. of average earnings
| |||||||||
Single
| Married both working
| Married couple with two children
| |||||||
£ per week
| £ per week 1984–85 prices
| per cent. of gross income
| £ per week
| £ per week 1984·85 prices
| per cent. of gross income
| £ per week
| £ per week 1984–85 prices
| per cent. of gross income
| |
1983–84
| |||||||||
(a) Income tax | 364·42 | 382·70 | 42·6 | 268·75 | 282·23 | 31·4 | 352·77 | 370·46 | 40·7 |
(b) NIC | 21·15 | 22·21 | 2·5 | 42·30 | 44·42 | 4·9 | 21·15 | 22·21 | 2·4 |
(c) (a)plus (b) | 385·57 | 404·91 | 45·1 | 311·05 | 326·65 | 36·4 | 373·92 | 392·67 | 43·1 |
1984–85
| |||||||||
(a) Income tax | 392·88 | 392·88 | 42·8 | 289·09 | 289·09 | 31·5 | 379·61 | 379·61 | 40·7 |
(b) NIC | 22·50 | 22·50 | 2·4 | 45·00 | 45·00 | 4·9 | 22·50 | 22·50 | 2·4 |
(c) (a) plus (b) | 415·38 | 415·38 | 45·2 | 334·09 | 334·09 | 36·4 | 402·11 | 402·11 | 43·1 |
1985–86
| |||||||||
(a) Income tax | 421·87 | 399·88 | 42·9 | 310·01 | 293·85 | 31·5 | 407·45 | 385·21 | 40·8 |
(b) NIC | 23·85 | 22·61 | 2·4 | 47·70 | 45·21 | 4·9 | 23·85 | 22·61 | 2·4 |
(c) (a)plus (b) | 445·72 | 422·48 | 45·3 | 357·71 | 339·06 | 36·4 | 431·30 | 408·82 | 43·2 |
700 per cent. of average earnings
| |||||||||
Single
| Married both working
| Married couple with two children
| |||||||
£ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| £ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| £ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| |
1983–84
| |||||||||
(a) Income tax | 569·62 | 598·19 | 47·6 | 439·42 | 461·46 | 36·7 | 557·97 | 585·95 | 46·1 |
(b) NIC | 21·15 | 22·21 | 1·8 | 42·30 | 44·42 | 3·5 | 21·15 | 22·21 | 1·7 |
(c) (a) plus (b) | 590·77 | 620·40 | 49·4 | 481·72 | 505·88 | 40·2 | 579·12 | 608·16 | 47·9 |
1984–85
| |||||||||
(a) Income tax | 613·44 | 613·44 | 47·7 | 473·37 | 473·37 | 36·8 | 600·17 | 600·17 | 46·2 |
(b) NIC | 22·50 | 22·50 | 1·7 | 45·00 | 45·00 | 3·5 | 22·50 | 22·50 | 1·7 |
(c) (a) plus (b) | 635·94 | 635·94 | 49·4 | 518·37 | 518·37 | 40·3 | 622·67 | 622·67 | 47·9 |
1985–86
| |||||||||
(a) Income tax | 657·91 | 623·61 | 47·8 | 508·55 | 482·04 | 36·9 | 643·49 | 609·94 | 46·3 |
(b) NIC | 23·85 | 22·61 | 1·7 | 47·70 | 45·21 | 3·5 | 23·85 | 22·61 | 1·7 |
(c) (a) plus (b) | 681·75 | 646·21 | 49·5 | 556·25 | 527·25 | 40·4 | 667·34 | 632·55 | 48·0 |
1000 per cent. of average earnings
| |||||||||
Single
| Married both working
| Married couple with two children
| |||||||
£per week
| £ per week 1984–85 prices
| Per cent. of gross income
| £ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| £ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| |
1983–84
| |||||||||
(a) Income tax | 877·42 | 921·42 | 51·3 | 730·97 | 767·63 | 42·7 | 865·77 | 909·19 | 50·3 |
(b) NIC | 21·15 | 22·21 | 1·2 | 42·30 | 44·42 | 2·5 | 21·15 | 22·21 | 1·2 |
(c) (a) plus (b) | 897·57 | 943·63 | 52·5 | 773·27 | 812·05 | 45·2 | 886·92 | 931·40 | 51·5 |
1984–85
| |||||||||
(a) Income tax | 944·28 | 944·28 | 51·4 | 787·56 | 787·56 | 42·8 | 931·01 | 931·01 | 50·3 |
(b) NIC | 22·50 | 22·50 | 1·2 | 45·00 | 45·00 | 2·4 | 22·50 | 22·50 | 1·2 |
(c) (a) plus (b) | 966·78 | 966·78 | 52·6 | 832·56 | 832·56 | 45·3 | 953·51 | 953·51 | 51·5 |
1985–86
| |||||||||
(a) Income tax | 1,011·97 | 959·21 | 51·4 | 845·17 | 801·11 | 43·0 | 997·55 | 945·54 | 50·4 |
(b) NIC | 23·85 | 22·61 | 1·2 | 47·70 | 45·21 | 2·4 | 23·85 | 22·61 | 1·2 |
(c) (a) plus (b) | 1,035·82 | 981·82 | 52·7 | 892·87 | 846·32 | 45·4 | 1,021·40 | 968·15 | 51·6 |
2,000 per cent. of average earnings
| |||||||||
Single
| Married both working
| Married couple with two children
| |||||||
£ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| £ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| £ per week
| £ per week 1984–85 prices
| Per cent. of gross income
| |
1983–84
| |||||||||
(a) Income tax | 1,903·42 | 1,998·88 | 55·7 | 1,754·84 | 1,842·85 | 51·3 | 1,891·77 | 1,986·64 | 55·1 |
(b) NIC | 21·15 | 22·21 | 0·6 | 42·30 | 44·42 | 1·2 | 21·15 | 22·21 | 0·6 |
(c) (a) plus (b) | 1,924·57 | 2,021·09 | 56·3 | 1,797·14 | 1,887·27 | 52·5 | 1,912·92 | 2,008·85 | 55·7 |
1984–85
| |||||||||
(a) Income tax | 2,047·08 | 2,047·08 | 55·7 | 1,888·56 | 1,888·56 | 51·4 | 2,033·81 | 2,033·81 | 55·1 |
(b) NIC | 22·50 | 22·50 | 0·6 | 45·00 | 45·00 | 1·2 | 22·50 | 22·50 | 0·6 |
(c) (a) plus (b) | 2,069·58 | 2,069·58 | 56·3 | 1,933·56 | 1,933·56 | 52·6 | 2,056·31 | 2,056·31 | 55·7 |
1985–86
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(a) Income tax | 2,192·7 | 2,077·89 | 55·7 | 2,023·94 | 1,918·43 | 51·4 | 2,177·75 | 2,064·22 | 55·29 |
(b) NIC | 23·85 | 22·61 | 0·6 | 47·70 | 45·21 | 1·2 | 23·85 | 22·61 | 0·6 |
(c) (a) plus (b) | 2,216·02 | 2,100·49 | 56·3 | 2,071·64 | 1,963·64 | 52·7 | 2,201·60 | 2,086·82 | 55·8 |
Notes:
1. Income tax payments are calculated on the assumption that households have no other tax relief apart from the standard allowances. Earners, including earning wives, are assumed to pay class 1 NI contributions at the contracted-in rate. The figures for NI contributions are financial year averages.
2. Average earnings are taken to be the average gross weekly earnings of all full time males on adult rates with pay unaffected by absence Figures for 1984–85 and 1985–86 are illustrative estimates which assume growth of 7½ and 7 per cent. respectively.
3. In order to facilitate comparisons with the other household types, the working couple are assumed to have joint earnings of the various multiples of average male earnings. In calculating income tax and NIC payments it is assumed that the joint earnings are split between husband and wife in the ratio 60:40.
4. For the married couple with two children, the percentage column expresses taxes etc. as percentages of gross earnings plus child benefit. For this purpose, financial year averages are used for child benefit.
5. The figures for indirect taxes are estimates based on the 1983 Family Expenditure Survey. Estimates cannot reliably be made outside the income range for which figures are shown. In practice, there are quite wide variations in spending patterns between households with similar incomes and compositions and because of sampling variation, there can also be substantial differences between the estimates obtained from different years' family expenditure surveys. The category "other indirect taxes" includes the indirect effects of taxes levied on businesses, such as duty on derv and the national insurance surcharge.