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Direct Taxation

Question for HM Treasury

UIN HL7489, tabled on 11 April 2016

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.

Answered on

25 April 2016

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.

Answered by

Treasury