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Tag: Baroness Wilcox

  • Baroness Wilcox – 2016 Parliamentary Question to the HM Treasury

    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 what has been the change in real earnings, calculated as nominal earnings growth minus inflation, over the last two years; and what was the change in 2008–10.

    Lord O’Neill of Gatley

    In the two years to Q4 2010, real total pay fell by 2.8%. In the last two years, real wages have now grown by 3.6%. Wage growth has outstripped inflation for 16 consecutive months, the longest period of real wage growth since 2008. The OBR forecast real wage growth to continue over the entire forecast period.

  • Baroness Wilcox – 2016 Parliamentary Question to the HM Treasury

    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.