Direct Taxation
(asked on 11th April 2016) - View Source
Question to the HM Treasury:
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.
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.