asked the Minister for Finance the estimated income tax payable for 1987 by the amount applicable to (i) PAYE, (ii) farmers, (iii) self-employed traders and professionals, (iv) DIRT and (v) other investment income.
Written Answers. - Tax Statistics.
44.
The post-budget estimate for income tax receipts in 1987 is £2,721.7 million. The following table sets out the breakdown of this estimate in so far as it is available:—
|
1987 post-budget estimate |
|
|
£ million |
|
|
PAYE |
2,167.1 |
|
Farmers |
35.5 |
|
Other non-PAYE |
226.1 |
|
Deposit interest retention tax |
283.0 |
|
Schedule C/Miscellaneous |
10.0 |
|
Total |
2,721.7 |
Note:
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.
Figures for tax expected to be paid on investment income are included under the appropriate headings in the table. Statistics are not available which would enable these figures other than those accounted for by deposit interest retention tax to be separately identified.
45.
asked the Minister for Finance in respect of each year from 1979 to 1986 inclusive, the average tax paid by (a) PAYE taxpayers, (b) farmers, (c) self-employed traders and professionals and (d) persons whose main source of income is investment income.
Following is the information requested in so far as it is available:—
|
Year |
Average tax payment made by |
||
|
(a) |
(b) |
(c) |
|
|
PAYE |
Farmers |
Other self-employed |
|
|
£ |
£ |
£ |
|
|
1979 |
915 |
488 |
636 |
|
1980 |
1,130 |
597 |
889 |
|
1981 |
1,405 |
463 |
1,022 |
|
1982 |
1,672 |
543 |
1,325 |
|
1983 |
1,911 |
705 |
1,510 |
|
1984 |
2,289 |
703 |
1,792 |
|
1985 |
2,528* |
672 |
1,857* |
|
1986 |
2,768* |
661* |
1,943* |
*Provisional — subject to revision.
Notes:
Column (a)
(1) 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 for example the 1979 net receipt is divided by the number liable to tax in 1979-80.
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 for example the 1979 receipt is divided by the number assessed for the year 1979-80.
(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.
Average tax payments by persons whose main source of income is investment income are included in column (c) of the table. Statistics are not available which would enable these payments to be separately identified.
46.
asked the Minister for Finance in respect of each year from 1979 to 1986, the estimated cost of tax relief on (a) loan interest, mortgages and other interest, (b) VHI, (c) life assurance, (d) health expenses, (e) permanent health insurance, (f) covenants; and the number of taxpayers who were granted tax relief in respect of each category.
The following table sets out the information requested in so far as it is available:
Cost to the Exchequer.
|
Allowance or relief |
1979-80 |
1980-81 |
1981-82 |
1982-83 |
1983-84 |
1984-85 |
1985-86 |
1986-87 |
||||||||
|
Cost£million |
Number of persons affected |
Cost£million |
Number of persons affected |
Cost£million |
Number of persons affected |
Cost£million |
Number of persons affected |
Cost£million |
Number of persons affected |
Cost£million |
Number of persons affected |
Cost£million |
Number of persons affected |
Cost£million |
Number of persons affected |
|
|
(a)Loan interest |
30.0 |
200,000 |
36.0 |
216,000 |
55.0 |
233,000 |
75.0 |
247,000 |
104.0 |
266,000 |
130.0 |
282,000 |
145.0 |
278,000 |
150.0 |
284,000 |
|
(b)Medical Insurance (VHI) |
5.0 |
165,000 |
6.0 |
180,000 |
6.5 |
200,000 |
10.0 |
230,000 |
19.5 |
263,000 |
24.5 |
288,000 |
31.5 |
299,000 |
36.9 |
308,000 |
|
(c)Life assurance |
8.0 |
380,000 |
10.0 |
400,000 |
11.5 |
430,000 |
15.0 |
463,000 |
22.0 |
490,000 |
25.3 |
483,000 |
29.3 |
485,000 |
32.0 |
482,000 |
|
(d)Health expenses |
0.3(1979) |
1,681 |
0.5(1980) |
2,061 |
0.5(1981) |
2,067 |
0.5(1982) |
2,223 |
0.8(1983) |
2,955 |
1.25(1984) |
4,419 |
1.6(1985) |
6,308 |
2.2(1986) |
7,877 |
|
(e)Permanent health insurance |
0.1 |
Not available |
0.3 |
Not available |
0.3 |
Not available |
0.2 |
8,400 |
0.2 |
10,800 |
0.2 |
13,600 |
0.25 |
18,600 |
0.3 |
20,400 |
|
(f)Covenants |
1.2 |
Not available |
2.0 |
Not available |
2.0 |
Not available |
2.0 |
6,000(continued) |
2.5 |
6,000 |
3.5 |
6,100 |
3.9 |
6,200 |
Not available |
Not available |
Notes:
(i) The estimates supplied in the table are in respect of the relevant income tax year expecpt in the case of health expenses which are in respect of the period of 12 months beginning on 1 January in each year.
(ii) With the exception of the figures for health expenses for 1985 and 1986 all estimates given for 1985-86 and 1986-87 are provisional and are subj ect to revision when later data for these years are available.
(iii) The cost figures shown for permanent health insurance represent net costs after taking into account the tax payable on benefits.
47.
asked the Minister for Finance in relation to each year from 1979 to 1986 inclusive (a) the total yield from corporation tax, (b) the number of original corporation tax assessments raised, (c) the number of companies liable to corporation tax and (d) the number of companies who paid corporation tax.
Following is the information requested in so far as it is available:—
|
(a) |
(b) |
(c) |
|
|
Year |
Net receipt of corporation tax (1) |
Number of corporation tax (1) assessments made |
Number of companies chargeable to corporation tax (1) |
|
£ million |
|||
|
1979 |
130.3 |
26,414 |
not available |
|
1980 |
140.3 |
29,834 |
not available |
|
1981 |
199.7 |
35,696 |
41,904 |
|
1982 |
231.8 |
46,074 |
44,156 |
|
1983 |
214.9 |
44,921 |
51,351 |
|
1984 |
209.6 |
45,425 |
53,498 |
|
1985 |
217.5 |
46,281 |
56,832 |
|
1986 |
258.0 |
not available |
not available |
(1) Including corporation profits tax.
Information is not available which would enable a reliable estimate of the number of companies who paid corporation tax to be made. However, it is tentatively estimated that the number of companies which are ultimately expected to make tax payments in respect of the years of account 1980-81 to 1985-86 inclusive is as follows:
|
Year of account |
Number of companies which made or are expected to make corporation tax payments |
|
1980-81 |
9,000 |
|
1981-82 |
9,500 |
|
1982-83 |
12,000 |
|
1983-84 |
10,500 |
|
1984-85 |
10,000 |
|
1985-86 |
8,500 |
|
1986-87 |
not available |
Figures are not available in respect of earlier years.
Notes:
Column (b)
As a result of the bringing forward of the due dates for payment of the tax in 1982 a number of companies received two assessments in that year. Consequently, the figure shown for 1982 assessments is inflated beyond the level of a normal year.
Column (c)
The figures shown in this colum include companies on the tax records in respect of which assessments were not issued in the year because they were newly-formed companies in relation to which assessments were not yet appropriate or were existing companies in obvious loss-making circumstances.
48.
asked the Minister for Finance in respect of each year from 1979 to 1986 inclusive, the estimated cost of (a) export sales relief, (b) Shannon relief, (c) 10 per cent manufacturing tax rate, (d) stock relief, (e) capital allowances, both accelerated allowances and other allowances, (f) reduced rate of corporation tax, and (g) Section 84 loans.
The following table sets out the information requested in so far as it is available:—
Estimated cost to the Exchequer
|
Allowance or relief |
1979 |
1980 |
1981 |
1982 |
1983 |
1984 |
1985 |
1986 |
|
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
|
|
(a)Export salesrelief |
(79-80)86.0 |
(80-81)93.0 |
(81-82)106.0 |
(82-83)96.3 |
(83-84)301.1 |
(84-85)194.4 |
(85-86)422.9 |
(86-87)not available |
|
(b)“Shannon”relief |
(79.80)8.0 |
(80-81)10.0 |
(81-82)10.0 |
(82-83)10.5 |
(83-84)22.0 |
(84-85)40.2 |
(85-86)56.8 |
(86-87)not available |
|
(c)Manufacturing profits |
||||||||
|
—reduced rate of tax† |
— |
— |
nil |
91.7 |
90.1 |
95.8 |
111.3 |
not available |
|
(d)Stock relief† |
15.0 |
9.0 |
11.0 |
13.5 |
10.5 |
9.3 |
11.0 |
1.5 |
|
(e)Capital |
||||||||
|
allowances: |
(79-80) |
(80-81) |
(81-82) |
(82-83) |
(83-84) |
(84-85) |
(85-86) |
(86-87) |
|
Accelerated† |
67.0 |
83.1 |
95.6 |
112.2 |
135.7 |
150.8 |
170.5 |
not available |
|
Other |
23.0 |
33.1 |
47.5 |
71.5 |
82.5 |
93.2 |
114.0 |
not available |
|
(f)Reduced rate of corporation tax† |
5.0 |
5.5 |
7.0 |
8.0 |
7.5 |
7.3 |
7.6 |
not available |
|
(g)“Section 84” Loans |
1.7 |
5.3 |
12.7 |
63.0 |
73.0 |
86.0 |
100.2 |
not available |
†These estimates are very tentative and are subject to a wide margin of error.
NOTES ON TABLE:
(a) Export sales relief
and,
(b) "Shannon" relief
The figures for each year include the tax relief relevant to accounting periods which ended in that year and the relief relating to earlier accounting periods which was also allowed in that year.
(c) Manufacturing profits
These figures represent the estimated loss to the Exchequer arising from the charging of manufacturing and other qualifying profits at reduced rates of corporation tax instead of at normal rates.
(e) Capital allowances
The figures shown in the table are in respect of relief allowed in each year ending on 5 April in respect of that year.
(g) "Section 84" Loans
These figures include preference share financing which is a minor element of the total.