Skip to main content

Taxes And Benefits

Volume 175: debated on Thursday 5 July 1990

The text on this page has been created from Hansard archive content, it may contain typographical errors.

To ask the Chancellor of the Exchequer if he will publish in the Official Report up-to-date figures on the same basis as those provided to the hon. Member for Newcastle upon Tyne, East, in his answer of 8 January, Official Report, columns 559–64, revising his figures to include an estimate of the effects of the 1990 Budget statement and the introduction of the community charge.

Income tax, NICS and indirect tax payments at multiples of average earnings, 1988–89
Multiples of average earnings
0.500.7511.5234571020
Single Amounts, £ per week
Income Tax19.5135.5351.5583.59129.33231.85334.37436.89641.93949.491,974.69
NICS11.5317.3023.0727.4527.4527.4527.4527.4527.4527.4527.45
VAT9.5212.8219.98
Other indirect15.1518.9627.22
Total31.0477.50106.40158.24156.78259.30361.82464.34669.38976.942,002.14
Domestic rates7.689.3512.99
Percentage of earnings
Income Tax15.218.520.121.725.230.232.634.135.837.038.5
NICS9.09.09.07.15.43.62.72.11.51.10.5
VAT5.05.05.2
Other indirect7.97.47.1
Total24.240.441.541.230.633.735.336.237.338.139.1
Domestic rates4.03.63.4
Married, no children Amounts, £ per week
Income Tax12.3528.3744.3976.43117.87220.39322.91425.43630.47938.031,963.23
NICS11.5317.3023.0727.4527.4527.4527.4527.4527.4527.4527.45
VAT8.7312.3220.12
Other indirect16.8220.6328.89
Total23.8871.22100.41152.89145.32247.84350.36452.88657.92965.481,990.68
Domestic rates7.528.7311.37

[holding answer 5 June 1990]: Figures for 1978–79 to 1987–88 were placed in the library of the House last year (as noted in the Official Report, 13 April 1989, column 624). The latest estimates for 1988–89, 1989–90 and 1990–91 are given in the tables. I regret that it is not yet possible to produce satisfactory estimates of the effects of the introduction of the community charge and associated arrangements for transitional relief.

Notes to Tables

  • (1) Income tax payments are calculated on the assumption 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 NI contributions at the contracted in rate. The figures for NI contributions are financial year averages.
  • (2) From 1990–91 husbands and wives will be taxed independently. Previously the tax liability of couples depended on their joint income. To permit comparisons with earlier years the table therefore shows income tax and national insurance contributions paid by a married couple in 1990–91 as a proportion of their joint income, assuming, as in the earlier years, that where both partners are earners, the husband and wife share the relevant multiple of earnings in the ratio 60:40.
  • (3) In order to provide comparability with 1978–79, when support for children was given partly through child tax allowances, child benefit is treated as a negative income tax for the married couple with two children.
  • (4) Average earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. These were £256.30 per week in 1988–89, £280.00 per week in 1989–90, and estimated to be £303.80 per week in 1990–91, using the Government Actuary Department's assumption of 81 per cent. growth over 1989–90 as published in the 1989 Autumn Statement.
  • (5) The estimate of indirect taxes are derived from the 1985 family expenditure survey, and are based on the illustrative assumption that 10 per cent. of disposable income is saved. There are wide variations in spending patterns between households with similar incomes and composition, and estimated payments of VAT, other indirect taxes and domestic rates are therefore approximate, even within the income range for which figures are shown. Outside this range the margin of error is even higher and reliable estimates cannot be made. Because of sampling variation, there can be substantial differences between the estimates obtained from family expenditure surveys for different years.
  • Multiples of average earnings

    0.50

    0.75

    1

    1.5

    2

    3

    4

    5

    7

    10

    20

    Percentage of earnings
    Income Tax9.614.817.319.923.028.731.533.235.136.638.3
    NICS9.09.09.07.15.43.62.72.11.51.10.5
    VAT4.54.85.2
    Other indirect8.88.17.5
    Total18.637.139.239.728.332.234.235.336.737.738.8
    Domestic rates3.93.43.0
    Married, both working Amounts, £ per week
    Income Tax0.0015.8431.8663.9097.83173.19260.33361.18566.22873.781,898.98
    NICS7.9515.7621.0234.6045.9054.9054.9054.9054.9054.9054.90
    VAT9.8713.8221.42
    Other indirect19.5422.9929.65
    Total7.9561.0189.69149.57143.73228.09315.23416.08621.12928.681,953.88
    Domestic rates9.299.9211.14
    Percentage of earnings
    Income Tax0.08.212.416.619.122.525.428.231.634.137.0
    NICS6.28.28.29.09.07.15.44.33.12.11.1
    VAT5.15.45.6
    Other indirect10.29.07.7
    Total6.231.735.038.928.029.730.732.534.636.238.1
    Domestic rates4.83.92.9
    Married, 2 children Amounts, £ per week
    Income Tax-2.1513.8729.8961.93103.37205.89308.41409.93615.97923.531,948.73
    NICS11.5317.3023.0727.4527.4527.4527.4527.4527.4527.4527.45
    VAT8.6912.7621.59
    Other indirect16.6719.7126.33
    Total9.3856.5385.43137.30130.82233.34335.86437.38643.42950.981,976.18
    Domestic rates7.428.8511.96
    Percentage of earnings
    Income Tax-1.77.211.716.120.226.830.132.034.336.038.0
    NICS9.09.09.07.15.43.62.72.11.51.10.5
    VAT4.55.05.6
    Other indirect8.77.76.8
    Total7.329.433.435.625.530.332.834.135.937.138.6
    Domestic rates3.93.53.1

    Income tax, NICS and indirect tax payments at multiples of average earnings, 1989–90

    Multiples of average earnings

    0.5

    0.75

    1

    1.5

    2

    3

    4

    5

    7

    10

    20

    Single Amounts, £ per week
    Income Tax21.6139.1156.6191.61142.87254.87366.87478.87702.871,038.872,158.87
    NICS11.1017.4023.7027.7427.7427.7427.7427.7427.7427.7427.74
    VAT10.4814.0821.95
    Other indirect15.5619.4527.95
    Total32.7182.55113.84169.25170.61282.61394.61506.61730.611,066.612,186.61
    Domestic rates8.4910.3314.36
    Amounts 1988–89 prices
    Income Tax20.0536.2852.5184.98132.53236.43340.32444.22652.01963.702,002.66
    NICS10.3016.1421.9925.7325.7325.7325.7325.7325.7325.7325.73
    VAT9.7213.0620.36
    Other indirect14.4318.0425.93
    Total30.3476.58105.60157.00158.27262.16366.06469.95677.75989.432,028.40
    Domestic rates7.889.5813.32
    Percentage of earnings
    Income Tax15.418.620.221.825.530.332.834.235.937.138.6
    NICS7.98.38.56.65.03.32.52.01.41.00.5
    VAT5.05.05.2
    Other indirect7.46.96.7
    Total23.439.340.740.330.533.635.236.237.338.139.0
    Domestic rates4.03.73.4
    Married, no children Amounts, £ per week
    Income Tax13.9731.4748.9783.97130.63242.63354.63466.63690.631,026.632,146.63

    Multiples of average earnings

    0.5

    0.75

    1

    1.5

    2

    3

    4

    5

    7

    10

    20

    NICS11.1017.4023.7027.7427.7427.7427.7427.7427.7427.7427.74
    VAT9.6013.5222.08
    Other indirect17.2621.1729.70
    Total25.0775.73107.36163.49158.37270.37382.37494.37718.371,054.372,174.37
    Domestic rates8.309.6412.56
    Amounts 1988–89 prices
    Income Tax12.9629.1945.4377.89121.18225.07328.97432.87640.66952.351,991.31
    NICS10.3016.1421.9925.7325.7325.7325.7325.7325.7325.7325.73
    VAT8.9112.5420.48
    Other indirect16.0119.6427.55
    Total23.2670.2599.59151.66146.91250.81354.70458.60666.39978.082,017.04
    Domestic rates7.708.9411.65
    Percentage of earnings
    Income Tax10.015.017.520.023.328.931.733.335.236.738.3
    NICS7.98.38.56.65.03.32.52.01.41.00.5
    VAT4.64.85.3
    Other indirect8.27.67.1
    Total17.936.138.338.928.332.234.135.336.737.738.8
    Domestic rates4.03.43.0
    Married, both working Amounts, £ per week
    Income Tax0.5818.0835.5870.58109.21191.08286.28397.73621.73957.732,077.73
    NICS9.5915.8922.1934.7946.4055.4955.4955.4955.4955.4955.49
    VAT10.8015.0623.56
    Other indirect19.9423.4230.38
    Total10.1764.7196.25159.31155.61246.57341.77453.22677.221,013.222,133.22
    Domestic rates10.2410.9212.30
    Amounts 1988/89 prices
    Income tax0.5416.7733.0165.47101.31177.25265.57368.95576.74888.431,927.39
    NICS8.9014.7420.5832.2743.0451.4751.4751.4751.4751.4751.47
    VAT10.0213.9721.86
    Other indirect18.5021.7328.18
    Total9.4360.0389.29147.78144.35228.73317.04420.43628.22939.911,978.87
    Domestic rates9.5010.1311.41
    Percentage of earnings
    Income Tax0.48.612.716.819.522.725.628.431.734.237.1
    NICS6.97.67.98.38.36.65.04.02.82.01.0
    VAT5.15.45.6
    Other indirect9.58.47.2
    Total7.330.834.437.927.829.430.532.434.636.238.1
    Domestic rates4.93.92.9
    Married, 2 children Amounts, £ per week
    Income Tax-0.5316.9734.4769.47116.13228.13340.13452.13676.131,012.132,132.13
    NICS11.1017.4023.7027.7427.7427.7427.7427.7427.7427.7427.74
    VAT9.4313.8723.57
    Other indirect16.9520.0826.91
    Total10.5760.7592.12147.69143.87255.87367.87479.87703.871,039.872,159.87
    Domestic rates8.159.7213.16
    Amounts 1988–89 prices
    Income Tax-0.4915.7431.9864.44107.73211.62315.52419.42627.21938.901,977.86
    NICS10.3016.1421.9925.7325.7325.7325.7325.7325.7325.7325.73
    VAT8.7512.8721.86
    Other indirect15.7218.6324.96
    Total9.8156.3585.45137.00133.46237.36341.25445.15652.94964.632,003.59
    Domestic rates7.569.0212.21
    Percentage of earnings
    Income Tax-0.48.112.316.520.727.230.432.334.536.138.1
    NICS7.98.38.56.65.03.32.52.01.41.00.5
    VAT4.55.05.6
    Other indirect8.17.26.4
    Total7.628.932.935.225.730.532.834.335.937.138.6
    Domestic rates3.93.53.1

    Income tax, NICS and indirect tax payments at multiples of average earnings, 1990–91

    Multiples of average earnings

    0.5

    0.75

    1

    1.5

    2

    3

    4

    5

    7

    10

    20

    Single Amounts, £ per week
    Income Tax23.5342.5261.5099.48160.21281.73403.25524.77767.811,132.372,347.57
    NICS10.4517.2924.1228.2828.2828.2828.2828.2828.2828.2828.28
    VAT11.4915.3923.93
    Other indirect17.0421.2830.54
    Total33.9888.34122.29182.23188.49310.01431.53553.05796.091,160.652,375.85
    Amounts 1988–89 prices
    Income Tax20.4136.8853.3486.28138.95244.35349.74455.13665.92982.112,036.05
    NICS9.0615.0020.9224.5324.5324.5324.5324.5324.5324.5324.53
    VAT9.9713.3520.75
    Other indirect14.7818.4626.49
    Total29.4776.62106.06158.05163.48268.87374.27479.66690.451,006.632,060.58
    Percentage of Earnings
    Income Tax15.518.720.221.826.430.933.234.536.137.338.6
    NICS6.97.67.96.24.73.12.31.91.30.90.5
    VAT5.05.15.3
    Other indirect7.57.06.7
    Total22.438.840.340.031.034.035.536.437.438.239.1
    Married, no children Amounts, £ per week
    Income Tax15.2634.2553.2391.21146.98268.50390.02511.54754.581,119.142,334.34
    NICS10.4517.2924.1228.2828.2828.2828.2828.2828.2828.2828.28
    VAT10.6014.8424.14
    Other indirect18.8923.1432.42
    Total25.7181.03115.33176.05175.26296.78418.30539.82782.861,147.422,362.62
    Amounts 1988–89 prices
    Income Tax13.2429.7146.1779.11127.48232.87338.27443.66654.45970.632,024.58
    NICS9.0615.0020.9224.5324.5324.5324.5324.5324.5324.5324.53
    VAT9.1912.8720.94
    Other indirect16.3820.0728.12
    Total22.3070.28100.03152.69152.00257.40362.79468.19678.98995.162,049.11
    Percentage of earnings
    Income Tax10.015.017.520.024.229.532.133.735.536.838.4
    NICS6.97.67.96.24.73.12.31.91.30.90.5
    VAT4.74.95.3
    Other indirect8.37.67.1
    Total16.935.638.038.628.832.634.435.536.837.838.9
    Married, both working Amounts, £ per week
    Income Tax0.8119.8038.7976.76114.74199.37307.20428.72671.761,036.322,251.52
    NICS7.2314.0720.9034.5746.9356.5656.5656.5656.5656.5656.56
    VAT12.0816.6825.89
    Other indirect21.8225.6133.18
    Total8.0467.77101.98170.40161.67255.93363.76485.28728.321,092.882,308.08
    Amounts 1988–89 prices
    Income Tax0.7017.1733.6466.5899.51172.92266.43371.83582.62898.801,952.75
    NICS6.2712.2018.1329.9840.7049.0549.0549.0549.0549.0549.05
    VAT10.4814.4722.45
    Other indirect18.9222.2128.78
    Total6.9758.7888.45147.79140.21221.97315.49420.88631.67947.852,001.80
    Percentage of Earnings
    Income Tax0.58.712.816.818.921.925.328.231.634.137.1
    NICS4.86.26.97.67.76.24.73.72.71.90.9
    VAT5.35.55.7
    Other indirect9.68.47.3
    Total5.329.733.637.426.628.129.931.934.236.038.0
    Married, 2 children Amounts, £ per week
    Income Tax0.7619.7538.7376.71132.48254.00375.52497.04740.081,104.642,319.84
    NICS10.4517.2924.1228.2828.2828.2828.2828.2828.2828.2828.28
    VAT10.3815.1925.72
    Other indirect18.4121.8029.23
    Total11.2165.8399.84159.94160.76282.28403.80525.32768.361,132.922,348.12
    Amounts 1988–89 prices
    Income Tax0.6617.1333.5966.53114.90220.29325.69431.08641.87958.062,012.00
    NICS9.0615.0020.9224.5324.5324.5324.5324.5324.5324.5324.53
    VAT9.0013.1722.31
    Other indirect15.9718.9125.35
    Total Percentage of earnings9.7257.0986.59138.72139.43244.82350.22455.61666.40982.582,036.53

    Multiples of average earnings

    0.5

    0.75

    1

    1.5

    2

    3

    4

    5

    7

    10

    20

    Income Tax0.58.712.716.821.827.930.932.734 836.438.2
    NICS6.97.67.96.24.73.12.31.91.30.90.5
    VAT4.65.05.6
    Other indirect8.17.26.4
    Total7.428.932.935.125.531.033.234.636.137.338.6