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Tuc And National Insurance

Volume 114: debated on Monday 6 April 1987

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asked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing for 1978–79, an estimate for 1986–87 and a forecast for 1987–88 of the percentage of income paid in income tax and national insurance on the same basis as in table 5.12 of the latest edition of "Social Trends".

Percentage of income paid in income tax and national insurance contributions1
Half average earnings2Average earnings2Twice average earnings2
TaxNICTaxNICTaxNIC
Single Person
1978–79315·86·524·46·528·74·5
1986–8714·67·021·89·025·47·1
1987–8813·97·020·39·023·76·9
Married couple*
1978–7937·86·520·36·526·74·5
1986–876·47·017·79·023·47·1
1987–886·57·016·89·021·96·9
1 Employee's contributions. Assumes contributions at Class 1, contracted in standard rate.
2 Earnings are average earnings for full-time adult male manual employees working a full week.
3 Average earnings for 1978–79 are based on males aged 21 or over, and on males paid at adult rates for 1986–87 and 1987–88. Average earnings for 1986–87 and 1987–88 are estimated by assuming increases of 7½ and 6½ per cent, respectively on the previous years in line with the assumptions used by the Government Actuary for reviewing national insurance contributions (paragraph 3.02 autumn statement).
4 Assuming no wife's earnings.

The information is contained in the table. As requested, the figures are on the same basis as those in table 5.12 of "Social Trends", No. 17, and therefore the estimates for 1978–79 are not strictly comparable with those for 1986–87 and 1987–88 because of the change in the definition of a manual worker (see footnote 3).