Income Tax Mr. Francois To ask the Chancellor of the Exchequer (1) what estimate he has made of the value of income tax payments made by each income decile group in each year since 1997-98; (2) what estimate he has made of the value of national insurance payments made by each income decile group in each year since 1997-98. John Healey The information requested falls within the responsibility of the National Statistician, who has been asked to reply. Letter from Karen Dunnell, dated 7 February 2007: As National Statistician, I have been asked to reply to your recent Parliamentary Questions asking (1) what estimate has been made of the value of income tax payments made by each income decile since 1997-98 (115529) and (2) what estimate has been made of the value of national insurance payments made by each income decile group since 1997-98 (115531). Estimates of income tax, and national insurance payments appear in the ONS analysis ‘The effects of taxes and benefits on household income’. The latest analysis for 2004/05 was published on the National Statistics website on 12th May 2006 at: http://www.statistics.gov.uk/taxesbenefits. The analysis is based on data from the Expenditure and Food Survey, which is a sample survey covering approximately 7,000 households in the UK. The tables below show the average annual payments of these taxes for households in each income decile. These average payments reflect both the number of households paying each tax, and the size of the payments. Since the results are based on a sample survey, some of the year to year movement is due to sampling variability. However the tables do illustrate longer term trends in the distribution of tax payments. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |£ per year | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | |Decile groups of all households ranked by equivalised disposable income|| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | |Bottom|2nd|3rd|4th|5th|6th|7th|8th|9th|Top|All households| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |At current prices |||||||||||| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |1997-98 |239|344|514|1,010|1,764|2,443|3,392|4,693|6,049|11,954|3,240| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |1998-99 |216|354|514|1,027|1,712|2,427|3,254|4,323|5,853|13,169|3,285| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |1999-2000 |174|313|532|1,094|1,771|2,479|3,485|4,531|6,421|13,312|3,411| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |2000-01 |217|394|781|1,293|2,023|2,776|3,956|4,957|6,703|13,450|3,655| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | |||||||||||| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |2001-02 |232|335|666|1,386|1,989|2,781|3,987|5,279|7,338|15,902|3,989| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |2002-03 |196|484|657|1,297|2,024|2,833|4,064|5,459|7,427|15,131|3,957| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |2003-04 |271|359|684|1,277|2,026|2,959|4,004|5,508|7,413|16,266|4,076| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |2004-05 |194|451|809|1,351|2,210|3,030|4,079|5,749|8,094|16,590|4,256| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |' From 2002-03 onwards, Income tax is shown after the deduction of any tax credits, which offset payments of income tax. Before 2002-03 tax credits treated as social security benefits. The effects on these figures is small.Source:‘The effects of taxes and benefits on household Income’, ONS| ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------- |£ per year | --------------------------------------------------------------------- | |Decile groups of all households ranked by equivalised disposable income|| --------------------------------------------------------------------- | |Bottom|2nd|3rd|4th|5th|6th|7th|8th|9th|Top|All households| --------------------------------------------------------------------- |At current prices |||||||||||| --------------------------------------------------------------------- |1997-98 |75|141|215|414|718|985|1,249|1,646|1,967|2,147|956| --------------------------------------------------------------------- |1998-99 |96|162|236|478|756|1,000|1,348|1,675|2,002|2,330|1,008| --------------------------------------------------------------------- |1999-2000 |84|148|244|466|724|1,038|1,334|1,635|2,147|2,179|1,000| --------------------------------------------------------------------- |2000-01 |82|158|295|459|783|1,054|1,434|1,683|2,006|2,302|1,026| --------------------------------------------------------------------- | |||||||||||| --------------------------------------------------------------------- |2001-02 |84|130|258|456|795|1,068|1,433|1,863|2,342|2,564|1,099| --------------------------------------------------------------------- |2002-03 |79|181|271|520|758|1,029|1,484|1,871|2,222|2,595|1.101| --------------------------------------------------------------------- |2003-04 |92|183|330|610|925|1,301|1,622|2,161|2,616|3,326|1,317| --------------------------------------------------------------------- |2004-05 |90|236|428|636|1,030|1,358|1,724|2,321|3,023|3,506|1,435| --------------------------------------------------------------------- |Source:‘The effects of taxes and benefits on household income’, ONS| ---------------------------------------------------------------------