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Taxation

Answer

I have been asked to reply.The information requested falls within the responsibility of the UK Statistics Authority. I have asked the authority to reply.Letter from Stephen Penneck, dated March 2011:"As Director General for the Office for National Statistics, I have been asked to reply to your recent question asking the Chancellor of the Exchequer, what his estimate is of the proportion of revenue raised from (a) direct, (b) indirect and (c) all taxes for (i) non-retired and (ii) retired households in each income decile in the latest year for which figures are available; and if he will make a statement. (43084).""The ONS does not publish data on the proportion of revenue raised from taxes by income decile but does estimate the average amount of direct and indirect taxes paid per household, per year. These estimates, for both retired and non-retired households, are based on data from the Living Costs and Food Survey and are reported in the ONS article ““The effects of taxes and benefits on household income””. The latest data for 2008/09 are in the attached table."

Table 1: Average direct¹ and indirect² taxes by decile groups of non-retired and retired³ households, 2008-09, United Kingdom
Average per household (£ per year)
	Decile groups ranked by equivalised disposable income4
	Bottom	2nd	3rd	4th	5th	6th	7th	8th	9th	Top	All households
Non-retired households
Number of households (Thousand)											19,096
Total direct taxes	1,243	1,879	3,406	4,860	6,908	7,811	9,947	12,577	15,591	25,485	8,971
Total indirect taxes	3,338	3,654	4,407	4,627	5,063	5,341	6,037	6,618	6,717	8,461	5,426
All taxes	4,581	5,533	7,813	9,487	11,971	13,152	15,984	19,195	22,308	33,946	14,397
Retired households
Number of households (Thousand)											6,778
Total direct taxes	1,083	806	1,174	1,066	1,261	1,318	1,819	2,406	3,160	7,195	2,129
Total indirect taxes	2,028	1,818	2,116	2,372	2,352	2,371	2,885	3,036	3,371	5,738	2,809
All taxes	3,111	2,624	3,290	3,438	3,613	3,689	4,704	5,442	6,531	12,933	4,938
¹ Includes income tax less tax credits, employees' National Insurance contributions, council tax and Northern Ireland rates less council tax benefit/rates rebates.
² Includes duties on alcoholic drinks, tobacco, petrol, oil, betting; VAT; customs (import) duties; motor vehicle duties; air passenger duties; insurance premium tax; driving licenses; television licenses; stamp duties; Camelot—payments to National Lottery Distribution Fund, and estimated Intermediate taxes.
³ Retired households are those where the combined income of retired members amounts to at least half the total gross income of the household, where a retired person is defined as anyone who describes themselves as 'retired' or anyone over minimum national Insurance pension age describing themselves as 'unoccupied' or 'sick or injured but not intending to seek work'.
4 The income decile groups are constructed using disposable household income, adjusted (or ““equalised") for household size and composition, as a proxy for standard of living. The decile groups are constructed separately for non-retired and retired households using the McClements equalisation scale.
Source:
Living Costs and Food survey, Office for National Statistics

Secondary information

Type

Written question

Reference

43084; 524 c704-6W

Session

2010-12

Subjects

Taxation

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk