asked the Minister for Finance the average amount of income tax paid by (a) PAYE workers (b) farmers and (c) self-employed, in each of the past five years.
Written Answers. - Income Tax.
48.
Following is the information requested:
|
Year |
Average tax payment made by |
||
|
(a) |
(b) |
(c) |
|
|
PAYE |
Farmers |
Other Self-Employed |
|
|
£ |
£ |
£ |
|
|
1982 |
1,672 |
543 |
1,325 |
|
1983 |
1,911 |
705 |
1,510 |
|
1984 |
2,289 |
703 |
1,792 |
|
1985 |
2,528* |
672 |
1,944* |
|
1986 |
2,768* |
629* |
2,005* |
* Provisional - subject to revision.
Notes
Column (a)
(i) Income tax collected through the PAYE mechanism covers more than income tax on ordinary wages and salaries. It includes tax paid by directors of close companies who are akin to the self-employed as well as tax on "other income" of employees such as rent and other investment income.
(ii) The average tax payment for each year is obtained by dividing the net receipt of PAYE tax in each calendar year by the number of taxpaying units effectively liable to tax in the income tax year in which the calendar year ends e.g. the 1982 net receipt is divided by the number liable to tax in 1982-83.
Column (b)
(i) In calculating the figures in this column the estimated net receipt from farm taxation in each calendar year has been divided by the number of farming tax units assessed to tax on their farming profits in the year of assessment in which the calendar year ends e.g. the 1982 receipt is divided by the number assessed for the year 1982-83.
(ii) Full-time farmers and farmers who, or whose spouses, carry on another trade or profession have been included in the calculations.
(iii) Income tax on farming profits is collected with Schedule D tax generally and because of this it cannot be separately distinguished. Accordingly the figures shown for tax payments by farmers are estimated.
Column (c)
(i) The figures contained in this column are obtained by dividing the net receipt of income tax from other self-employed tax units in each calendar year by the estimated number of those units assessed to tax in the year of assessment in which the calendar year ends, as explained in note (i) for column (b).
Columns (a), (b) and (c)
(i) A married couple who has elected or has been deemed to have elected to have the income of both spouses assessed on the husband is counted as one tax unit.
(ii) Some figures in the columns differ from those given previously. This is due to more accurate information becoming available in the meantime.
49.
asked the Minister for Finance the total number of (a) farmers and (b) self-employed liable to income tax in 1985; and in respect of each category, the number from whom payments were received.
The relevant statistics available are in respect of the income tax year 1985-86. From figures contained in Table 14 of the results of the 1985 Labour Force Survey (published in September, 1986) it is estimated that 129,500 farmers were chargeable to income tax in respect of that income tax year. This comprises some 119,000 full-time farmers together with a further 10,500 farmers who or whose spouses carry on another trade or profession.
It is estimated that some 80,000 self-employed persons other than farmers were chargeable to income tax in 1985-86.
The numbers of self-employed persons including farmers who made tax payments in respect of 1985-86 up to 31 May 1987 were close on 80,000. Statistical records of tax payments by vocational category are not maintained. The number of self-employed persons including farmers who are ultimately expected to make tax payments in respect of 1985-86 is provisionally estimated at 101,000 of which the number of farmers is tentatively estimated to be of the order of 26,000.