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Income Tax and National Insurance Contributions

Volume 458: debated on Tuesday 13 March 2007

To ask the Chancellor of the Exchequer how much was paid in (a) income tax and (b) national insurance contributions by (i) men and (ii) women aged (A) under 25, (B) 25 to 29, (C) 30 to 34, (D) 35 to 39, (E) 40 to 44, (F) 45 to 49, (G) 50 to 54, (H) 55 to 59, (I) 60 to 64, (J) 65 to 69, (K) 70 to 74, (L) 75 to 79 and (M) over 79 in the latest year for which information is available. (126060)

The available estimates of the distribution of income tax liabilities can be found in table 3.2 “Distribution of median and mean income tax by age range and gender, 2004-05” on the HM Revenue and Customs website at:

http://www.hmrc.gov.uk/stats/income_distribution/menu-by-year.htm#32

Estimates of the distribution of national insurance contributions by age range and gender for 2004-05 are provided in the following table.

MaleFemale

Age range

Numbers paying NICs (000)

Mean NICs (£)

Numbers paying NICs (000)

Mean NICs (£)

Under 20

372

552

258

419

20 to 24

1,180

930

970

760

25 to 29

1,500

1,380

1,240

1,240

30 to 34

1,820

1,600

1,390

1,180

35 to 39

2,050

1,750

1,500

1,100

40 to 44

2,050

1,670

1,590

1,050

45 to 49

1,810

1,690

1,450

1,080

50 to 54

1,610

1,610

1,310

1,040

55-591

1,500

1,480

1,530

737

60 to 642

985

1,140

65+

All ranges

14,870

1,500

11 ,250

1,010

1 Includes females that turned 60 at the end of the financial year but paid NICs as 59-year-olds for some proportion of the year.

2 Includes males that turned 65 at the end of the financial year but paid NICs as 64-year-olds for some proportion of the year.

Notes:

1. This table is based on age at the end of the financial year. Individuals cease paying NICs when they reach state retirement age; this is 60 for females and 65 for males.

2. Figures are rounded so totals will not necessarily sum to their components.

3. Figures are UK primary accruals for 2004-05 net of rebates. They include Class 1 net, Class 2, Class 3 and Class 4 NICs.

4. The figures are estimated using:

Annual survey of hours and earnings for 2004-05 for the Class 1 age distribution.

Survey of personal incomes for 2003-04, uprated with earnings for 2004-05, for the self-employed age distribution.

DWP contributions and qualifying years tables for 2002-03 for the Class 3 age distribution.