Baroness Wilcox – 2016 Parliamentary Question to the HM Treasury
The below Parliamentary question was asked by Baroness Wilcox on 2016-04-11.
To ask Her Majesty’s Government how much someone earning (1) £15,000, and (2) £150,000, a year would have paid in direct taxation, including income tax and national insurance, in (a) 2009–10 and (b) 2015–16.
Lord O’Neill of Gatley
Someone earning £15,000 would have had a total tax liability from Income Tax and National Insurance Contributions of £2,726 in 2009-10 and £1,713 in 2015-16.
Someone earning £150,000 would have had a total tax liability from Income Tax and National Insurance Contributions of £55,189 in 2009-10 and £59,914 in 2015-16.
This is summarised in the following tables, which break down the liability by Income Tax and National Insurance Contributions (NICs):
|
1) £15,000 |
2009-10 |
2015-16 |
difference |
|
Income Tax |
£1,705 |
£880 |
-£825 |
|
Employee NICs |
£1,021 |
£833 |
-£189 |
|
Total tax |
£2,726 |
£1,713 |
-£1,014 |
|
Net income |
£12,274 |
£13,287 |
£1,014 |
|
2) £150,000 |
2009-10 |
2015-16 |
difference |
|
Income Tax |
£49,930 |
£53,643 |
£3,713 |
|
Employee NICs |
£5,259 |
£6,271 |
£1,012 |
|
Total tax |
£55,189 |
£59,914 |
£4,725 |
|
Net income |
£94,811 |
£90,086 |
-£4,725 |
This assumes that the individual was born after 5 April 1948 (and therefore not receiving the Age-related Personal Allowance), is paying employee NICs (not contracted out), and has a gross income from pay only. The Income tax calculations assume no other allowances or deductions. The NICs is calculated on an annual basis which assumes a smooth distribution of the income across the year.
