Written Answers. - Tax Code.
Paul McGrath
Ceist:
185
Mr. McGrath
asked the
Minister for Finance
the tax payable by a widow or widower with dependent children on gross income of £28,000 in the tax year 2000 to 2001 assuming the spouse died in the previous tax year and assuming salary, tax credits, tax rates and tax bands remained constant; if he will compare this tax liability with that for the tax year 1999 to 2000 and for each of the subsequent seven years and in particular the effect of the tapering widowed tax allowance on this family.
[25935/00]
I assume the Deputy is seeking to chart the income tax liability of a widowed parent who was bereaved in the tax year 1999-00, assuming no changes to the income tax system in the tax years following the current tax year. The following table contains this information:
Widowed Parent, Earning £28,000 – Income Tax Liability
|
Year ofBereavement
|
IncomeTax Year
|
TaxTreatment1
|
TaxLiability
|
|
Year 1
|
1999/00
|
MarriedTreatment
|
£4,464
|
|
Year 2
|
2000/01
|
Bereav. Allow.£10,000
|
£3,399
|
|
Year 3
|
2001/02*
|
Bereav. Allow.£8,000
|
£3,839
|
|
Year 4
|
2002/03*
|
Bereav. Allow.£6,000
|
£4,279
|
|
Year 5
|
2003/04*
|
Bereav. Allow£4,000
|
£4,719
|
|
Year 6
|
2004/05*
|
Bereav. Allow£2,000
|
£5,159
|
|
Year 7
|
2005/06*
|
Widowed Parent
|
£5,599
|
*Assuming no changes to the income tax system in these tax years.
In the year of bereavement widowed parents continue to be taxed as a married couple. In the years after the year of bereavement widowed parents are entitled to personal allowances which are equivalent to that of a married couple. They are also eligible for an increased standard rate band, £20,150 in the current tax year. In addition to this, in the first five years after the year of bereavement widowed parents are entitled to a widowed parent bereavement allowance, which is tapered over the five years. In the 1999-00 tax year this allowance was available at the marginal rate of tax and amounted to £5,000 in year one and reduced by £1,000 for each subsequent tax year. In the 2000-01 tax year this allowance was increased to £10,000 in year one and reduced by £2,000 for each subsequent tax year. However, the allowance was made available at the standard rate only.
Paul McGrath
Ceist:
186
Mr. McGrath
asked the
Minister for Finance
if he will compare the tax payable in the tax year 2000 to 2001 by two married couples in the PAYE system, one with one income and the other with two incomes, each having three dependent children allowable mortgage interest of £3,000, health insurance payments of £800, with gross household incomes of (i) £15,000; (ii) £20,000, iii) £25,000 (iv) £28,000, (v) £31,000; (vi) £34,000; (vii) £37,000; (viii) £40,000; and the net effect for each family of increasing the lower tax rate band by (a) £1,000; (b) £2,000 and (c) £3,000.
[25936/00]
The following tables compare the tax liability of married taxpayers at various income levels as outlined in the Deputy's question. The first table demonstrates the position in the current tax year while the additional tables show the position in the current tax year assuming various changes to the standard rate band as outlined in the question.
For the purposes of the calculations it is assumed that the married one income couples are in receipt of the home carers tax-free allowance. The increases in the standard rate band suggested by the Deputy are taken to be an increase of the same value for married couples with one or two incomes.
Current Tax Year
|
Income
|
Married Couple,1 Income
|
Married Couple,2 Incomes
|
|
Tax Payable
|
Tax Payable
|
|
£15,000
|
£0
|
£0
|
|
£20,000
|
£616
|
£1,056
|
|
£25,000
|
£1,716
|
£2,156
|
|
£28,000
|
£2,376
|
£2,816
|
|
£31,000
|
£3,696
|
£3,476
|
|
£34,000
|
£5,016
|
£4,136
|
|
£37,000
|
£6,336
|
£5,456
|
|
£40,000
|
£7,656
|
£6,776
|
Current Tax Year – Standard Rate Band Increased by £1,000
[to £29,000 for Married One Income Couples and to £35,000 for Married Two Incomes Couples]
|
Income
|
Married Couple,1 Income
|
Married Couple,2 Incomes
|
|
Tax Payable
|
Tax Payable
|
|
£15,000
|
£0
|
£0
|
|
£20,000
|
£616
|
£1,056
|
|
£25,000
|
£1,716
|
£2,156
|
|
£28,000
|
£2,376
|
£2,816
|
|
£31,000
|
£3,476
|
£3,476
|
|
£34,000
|
£4,796
|
£4,136
|
|
£37,000
|
£6,116
|
£5,236
|
|
£40,000
|
£7,436
|
£6,556
|
Current Tax Year – Standard Rate Band Increased by £2,000
[to £30,000 for Married One Income Couples and to £36,000 for Married Two Incomes Couples]
|
Income
|
Married Couple,1 Income
|
Married Couple,2 Incomes
|
|
Tax Payable
|
Tax Payable
|
|
£15,000
|
£0
|
£0
|
|
£20,000
|
£616
|
£1,056
|
|
£25,000
|
£1,716
|
£2,156
|
|
£28,000
|
£2,376
|
£2,816
|
|
£31,000
|
£3,256
|
£3,476
|
|
£34,000
|
£4,576
|
£4,136
|
|
£37,000
|
£5,896
|
£5,016
|
|
£40,000
|
£7,216
|
£6,336
|
Current Tax Year – Standard Rate Band Increased by £3,000
[to £31,000 for Married One Income Couples and to £37,000 for Married Two Incomes Couples]
|
Income
|
Married Couple,1 Income
|
Married Couple,2 Incomes
|
|
Tax Payable
|
Tax Payable
|
|
£15,000
|
£0
|
£0
|
|
£20,000
|
£616
|
£1,056
|
|
£25,000
|
£1,716
|
£2,156
|
|
£28,000
|
£2,376
|
£2,816
|
|
£31,000
|
£3,036
|
£3,476
|
|
£34,000
|
£4,356
|
£4,136
|
|
£37,000
|
£5,676
|
£4,796
|
|
£40,000
|
£6,996
|
£6,116
|
Paul McGrath
Ceist:
187
Mr. McGrath
asked the
Minister for Finance
the number of PAYE taxpayers who paid income tax only at the lower rate and at the top rate, in each of the past five years; and if he will express these numbers as percentages of total PAYE taxpayers.
[25937/00]
I am advised by the Revenue Commissioners that the information requested by the Deputy is as follows:
Numbers and percentage of PAYE taxpayers in different tax bands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax Year
|
Exempt
|
|
|
Marginal Band
|
|
|
Standard Rate
|
|
|
HigherRate
|
All Cases
|
|
|
No.
|
%
|
No.
|
%
|
No.
|
%
|
No.
|
%
|
No.
|
|
|
|
|
1996/97
|
289,238
|
23.96%
|
102,687
|
8.51%
|
465,937
|
38.59%
|
349,438
|
28.94%
|
1,207,300
|
|
|
|
|
1997/98
|
319,690
|
24.64%
|
70,941
|
5.47%
|
527,099
|
40.62%
|
379,870
|
29.27%
|
1,297,600
|
|
|
|
|
1998/99
|
337,228
|
24.52%
|
49,347
|
3.58%
|
577,648
|
42.00%
|
411,277
|
29.90%
|
1,375,500
|
|
|
|
|
1999/00
|
418,424
|
28.89%
|
14,828
|
1.02%
|
561,395
|
38.76%
|
453,753
|
31.33%
|
1,448,400
|
|
|
|
|
2000/01
|
484,473
|
32.23%
|
4,930
|
0.33%
|
624,161
|
41.52%
|
389,836
|
25.92%
|
1,503,400
|
|
|
|
The figures from 1998-99 onwards are provisional and subject to revision.
From the 1999-2000 tax year onwards, the standard rated personal allowances and PAYE allowance are deducted after tax is calculated rather than before the tax calculation as was previously the case. This should be taken into account in comparing numbers for 1999-2000 and later years with earlier years.
Paul McGrath
Ceist:
188
Mr. McGrath
asked the
Minister for Finance
the number of self employed taxpayers who paid tax (i) only at the lower rate and (ii) only at the top rate in each of the past five years; and if he will express these numbers as a percentage of total self employed taxpayers.
[25938/00]
I am advised by the Revenue Commissioners that the information requested by the Deputy is as follows:
Numbers and percentage of Self-employed taxpayers in different tax bands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax Year
|
Exempt
|
|
|
Marginal Band
|
|
|
Standard Rate
|
|
|
HigherRate
|
All Cases
|
|
|
No.
|
%
|
No.
|
%
|
No.
|
%
|
No.
|
%
|
No.
|
|
|
|
|
1996/97
|
56,973
|
31.18%
|
44,310
|
24.25%
|
42,273
|
23.14%
|
39,144
|
21.43%
|
182,700
|
|
|
|
|
1997/98
|
60,708
|
31.07%
|
37,204
|
19.04%
|
53,304
|
27.28%
|
44,184
|
22.61%
|
195,400
|
|
|
|
|
1998/99
|
56,414
|
27.44%
|
32,551
|
15.83%
|
65,126
|
31.68%
|
51,509
|
25.05%
|
205,600
|
|
|
|
|
1999/00
|
55,552
|
25.71%
|
10,074
|
4.66%
|
94,023
|
43.51%
|
56,451
|
26.12%
|
216,100
|
|
|
|
|
2000/01
|
68,728
|
31.24%
|
3,016
|
1.37%
|
92,398
|
42.00%
|
55,858
|
25.39%
|
220,000
|
|
|
|
The figures from 1998-99 onwards are provisional and subject to revision.
From the 1999-2000 tax year onwards, the standard rated personal allowances are deducted after tax is calculated rather than before the tax calculation as was previously the case. This should be taken into account in comparing numbers for 1999-2000 and later years, with earlier years.
Paul McGrath
Ceist:
189
Mr. McGrath
asked the
Minister for Finance
the number of taxpayers who would cease paying tax at the top rate by increasing the lower tax band by (a) £1,000; (b) £2,000; (c) £3,000; (d) £4,000 and (e) £5,000.
[25939/00]
I am informed by the Revenue Commissioners that the information requested, estimated by reference to the income tax year 2001-2002, is as follows.
|
Proposed increase in standard rate band
|
Numbers removed from the top rate of tax
|
|
+£1,000/£2,000
|
39,900
|
|
+£2,000/£4,000
|
72,500
|
|
+£3,000/£6,000
|
96,000
|
|
+£4,000/£8,000
|
117,600
|
|
+£5,000/£10,000
|
138,300
|
The figures provided in the table are based on applying the stated increases in the standard rate band to single and widowed persons and double those increases to the band of £6000 which is available to married two earning couples in excess of the band limit of £28,000 up to which transferability between spouses is currently available.
These figures are provisional and subject to revision.
