Written Answers. - Taxation Statistics.
Michael D. Higgins
Question:
118
Mr. M. Higgins
asked the
Minister for Finance
if he will supply the following information for the latest available year, (1) the number of persons on PAYE (2) the number of persons paying taxes (3) the number of persons in each tax category (4) the percentage of taxpayers claiming tax-free allowances for work-related expenses (5) the total monetary amount of allowances in respect of work related expenses (6) the number of persons self employed (7) the number of persons self employed who pay taxes (8) the number of persons receiving tax-free allowances for work-related expenses and (9) the total monetary amount of allowances in respect of work related expenses.
Following is the information requested insofar as it is available:
|
PAYE
|
Self-employed
|
|
Number of tax units on tax record¹
|
1,000,000
|
189,000²
|
|
Number of tax units who pay income tax³
|
763,000
|
102,000
|
|
Number of tax units who claim expenses 4
|
478,000
|
Not
|
|
Amount of expenses claimed
|
£46 million
|
available
|
Notes:
¹ A tax unit is an individual person, or a married couple who have elected or have been deemed to have elected to have the income of both spouses assessed on the husband.
² The figure for self-employed tax units on tax record is the number who are assessed to tax through the Self-Assessment system on income from a trade, profession, investment or rental sources. In some of these cases the predominant income is from employment which is taxed through the PAYE system.
³ The difference between the number of tax units on record and the number who pay tax is generally accounted for by the operation of the personal allowances or exemption limits and also, in the case of self-employed persons, the availability of reliefs such as capital allowances, losses and retirement annuities.
4 The figures for expenses relate to expenses wholly, exclusively and necessarily incurred in the performance of employment by PAYE taxpayers.
Expenses such as business interest, telephone, light, heating and business motoring which are incurred in acquiring an income from self-employment are deducted prior to the determination of profits for tax purposes and are not included in income tax returns. Accordingly, statistics are not available which would enable the information requested to be provided.
Some £375 million was allowed in tax deductions for 1989-90 in respect of other business-related reliefs for which the relevant statistics are available, namely, capital allowances, losses and retirement annuity premiums.
As regards the number of persons in each tax category, presumably the Deputy has in mind the number of taxpaying units in each tax band. That information is as follows:
|
Numbers of taxpaying units
|
|
Tax Band
|
PAYE
|
Self-employed
|
|
Marginal relief
|
55,800
|
34,400
|
|
27% rate
|
409,000
|
42,000
|
|
48% rate
|
298,200
|
25,600
|
|
Total
|
763,000
|
102,000
|
The information provided on expenses relates to the income tax year 1989-90, the most recent year for which such information is available. The other information is in respect of the 1992-93 tax year. Figures for 1992-93 are provisional and are subject to revision.
