Ms CorstonTo ask the Chancellor of the Exchequer how many individuals are(a) paying tax but not national insurance contributions, (b) paying more tax than national insurance contributions and (c) paying less tax than national insurance contributions, breaking the figures down by employment category and wage bands. [8264]
Mr. JackThe latest estimates for 1996–97 are given in the table. National insurance contributions include both employee and the corresponding employer contributions. The three employment categories shown in the table are based on the classification used in Inland Revenue administrative systems. Inland Revenue administrative practice is to manage a taxpayer's affairs according to the "main source" of his/her income. For nearly all taxpayers this is either employment (schedule E) or self-employment (schedule D) income. In a small number of cases, the "main source" may not reflect his/her principal source of income.
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Individuals paying income tax but not paying national insurance contributions (thousands) Total Income1 £ per year Main source2, 3 Schedule E employment income Main Source2 Schedule D self employment income Other sources4 Total Under 5,000 160 30 220 410 5,000–10,000 320 100 1,890 2,310 10,000–15,000 160 50 880 1,090 15,000–20,000 70 20 390 480
Individuals paying income tax but not paying national insurance contributions (thousands) Total Income1 £ per year Main source2,3 Schedule E employment income Main Source2 Schedule D self employment income Other sources4 Total 20,000–25,000 30 10 180 220 25,000–30,000 20 10 170 100 30,000–40,000 20 10 70 100 Over 40,000 30 20 60 110 Total 810 250 3,760 4,820 1 Total income for tax purposes. 2 The description 'main source income' follows Inland Revenue administrative practice and reflects the classification used in Inland Revenue Statistics. 3 These figures include employees over the pension age (65 for men, 60 for women) who do not pay national insurance contributions. However, contributions are paid by their employers, where their earnings exceed the Class 1 lower earnings limit. 4 Includes pensions and investment income.
Individuals paying more income tax than national insurance contributions (thousands) Total income £ per year Main source1 Schedule E employment income Main source1 Schedule D self employment income Other sources2 Total Under 5,000 10 — — 10 5,000–10,000 730 560 30 1,320 10,000–15,000 1,150 650 50 1,850 15,000–20,000 1,820 350 50 2,220 20,000–25,000 1,820 190 20 2,030 25,000–30,000 1,110 120 20 1,250 30,000–40,000 900 130 20 1,050 Over 40,000 700 220 10 930 Total 8,240 2,220 200 10,660 1 The description 'main source income' follows Inland Revenue administrative practice and reflects the classification used in Inland Revenue Statistics. 2 Includes pensions and investment income.
Individuals paying less income tax than national insurance contributions (thousands) Total income £ per year Main source1 Schedule E employment income Main source1 Schedule D self employment income Other sources2 Total Under 5,000 830 110 — 940 5,000–10,000 3,810 230 10 4,050 10,000–15,000 3,140 — 10 3,150 15,000–20,000 1,440 — — 1,440 20,000–25,000 430 — — 430 25,000–30,000 70 — — 70 30,000–40,000 10 — — 10 Over 40,000 — — — — Total 9,730 340 20 10,090 1 The description "main source income" follows Inland Revenue administrative practice and reflects the classification used in Inland Revenue Statistics. 2 Includes pensions and investment income.