asked Her Majesty's Government:
What percentage of an individual's annual income currently goes on direct taxes and national insurance, at earnings of (a) £10,000, (b) £20,000, (c) £30,000, (d) £40,000, (e) £50,000, (f) £60,000, (g) £70,000, (h) £80,000, (i) £90,000, (j) £100,000, (k) £150,000, (l) £200,000, and (m) £500,000.
The information on liabilities is in the table. The figures assume no reliefs or deductions apply, and reflect the Statement by the Chancellor that the basic personal allowance for 2008-09 would be raised by £600 to £6,035, and the basic rate limit set at £34,800.
|Earnings||Income tax liability £||Primary class 1 NIC £||Total income tax and NICs £||Income tax and NICs as percentage of earnings|
1. Assumes not contracted-out class 1 NIC rate applies, and that earnings are spread evenly throughout the year.
2. Figures have been rounded to the nearest £1.
3. Assumes only income is earnings and no income tax reliefs or deductions apply.
Information on the average rate of income tax liability for various ranges of total income is shown in table 3.5 on income and deductions based on the survey of personal incomes, of which 2005-06 is the latest year available. This table reflects the effect of deductions and reliefs as well as different tax rates on different types of income. The information can be found on the HM Revenue and Customs website at www.hmrc.gov.uk/stats/income_distribution/menu-by-year.htm.